Evening star., 1922-07-06
BROADER MARKET,
WITH FIRM PRICES
Improved Technical Position
Ills Credited as Cause-Ac-
II ton in SpeciaIties.
BY STUART p. WEST.

4. NEW YORK. July 6.-Tne STOCK
market today gave quite the most
convincing exhibition of strength that
u has at any time since the culmina-
sion of the spring advance.
!, Trading became considerably more
aetive, and the upward movement In
stead of being confined to compara-
lively few stocks spread out through
pretty much the entire list.
anasmuch as the market on Wednes-
day had paid no particular heed to the
favorable developments in the rail-
vaay strike situation. there was no
rsason for regarding this as the lead
ing influence in the rise today.
$The market went higher simply be-
cause last months reaction had gone
far enough to set the Wall street
house in order. The important hold
ings distributed at the high levels
of April and May had been prottably
replaced. A short interest had been
cfeated in consequence of the theory
mt out in certain speculative quar-
ters that popular enthusiasm toward
the market having cooled off. and the
Pools having demonstrated their IN
ability to start things going again.
the tendency of prices would have
to be downward.
Conditions Improved.
SIT was tne OIL tne fHuCH
improved condition within the mar
ket itself that counted most in the
days price movement. Once the
share list threw off the hesitating ap-
pearance which it had worn for. the
last week or so, and definitely started
fsrward short sellers FASTENED to
take their losses and a lot of fresh
bpying came in from people who had
been holding off. waiting for the real
trend to be shown.
- Few Exceptions In Rally.
With the exception of the Mexican
oils. in which there was some further
selling for a time all classes of stocks
moved forward.
Rails took the lead. following Louis
Vile and Nashville. which was bid up
sharply in expectation that official
approval would soon be given to the
stock dividend plan originated in July,
1921.
Atlantic Coast line. a s the owner of
the Louisville majority stock. natu-
rally went along. In the other repre-
sentative dividend payers there were
numerous advances of point or more.
Movement in Oils.
While there was nothing new or un-
expected in the fact that every now
and then salt water appears in Mexi-
can oil territory. it is a good specu-
lative excuse for the moment. on the
one hand. for selling the Mexican oil
stocks. and on the other. for buying
the shares of wholly American COM
panies.
Thus as Mexican Petroleum and
the Pan-Americans went down. the
Standard oils and other American oil
shares went up. some of them quite
rapidly.
Copper and Sugar.
Both copper and sugar issues. for
their advance. had legitimate reason
dustries.
Belief in the early settlement of
the coal strike was expressed not
only in higher prices for the so-called
for the steels. Public utility stocks
were conspicuous again, especially
Consolidated Gas. Columbia Gas and
Electric, American Water Works and
North American.
German Marks Soft.
German marks sank to new low.
and II was again significant of the
movements that as the mark went
down. heavy pressure was renewed
against French francs.
At the low of the day the latter
were back almos, to where they were
in January. Virtually the entire years
Experimentation under 8 cents to
?oI-had been wiped away
The persistent weakness Of the
last Few days may or may not have
"A bearing upon the July installment
or German reparations due on the
18th.
Louisville and Nashville.
The sudden jump in Louisville and
Nashvllle followed signs of quiet ac-
cumu ulat1on going on in the stock,
winch have been noted for some time
me motive for this buying Is the con-
noence that the Interstate Commerce
commission will soon grant permission
tor the distribution of the $50. .0OO, 900
STOCK dividend that was first proposed
year ago. Louisville had a profit
ana loss surplus at the close of 1921
or nearly s14.000.000. The effect of
the stock dividend will be to capitalize
some more than two-thirds of this sur
Plus Tor the benefit of shareholders.
Other Rails Strong.
The Louisville move set the whole
railway list going. Revival of inter-
est in the Louisville stock dividend
naturally drew attention again to the
situation in other carriers which have
valuable treasury assets that poten-
TALLY belong to shareholders A
prominent Broadway house in its
letter this morning discussing this
subject mentioned. in addition to
Louisville. New York Central with
the increasing earning power of its
subsidiaries. Pennsylvania with its
ownership and some 3S per cent of
Norfolk and Western. and Missouri
Pacific preferred with 90 per cent of
dividend arrears and with its own
erShip of 100 non sh,res ~ Tax,s