The Washington herald., 1922-03-09
STOCK EXCHANGE /
TRADING CENTERSs
In SELECT GROUP
Steel, Equipment, Rubber
And Fertilizer Are
Favorites.
OTHERS UNCHANGED
Rails Particularly Quiet in Err
ratio Trade-Pure Oil May
Issue New Stock.

NEW YORK. March S.-Tradins
In stocks. which was rather active
todat. centered In a comparatively
small number Of groups. Among
the latter were the steel. equip
ment. rubber and fertilizer stocks;
gains OF a point or two were FREE
Quent in these departments. The
rest Of the list was little changed
and irregular. rails being particu-
larry quiet. Bonds were generally
steady with some irregularity
among the foreign issues. Car
money opened at az per cent and
was reduced to during the second
hour.
May Issue New stock.
The announcement that the Pure
Oil Company would issue some new
common stock to be offered TO
stockholders at par made the same
impression in the Street as the re.
cent decision of the Illinois Central
Railroad TO create an issue OF pre-.
Tered stock. On a rumor OF this
development the Nock broke ~
points yesterday. For the momepf
traders overlooked the fact that no
corporation attempts to finance IL
self through the issuance of stock
in times like these unless IL is con-
fident OF its credit rating. Pure
Oil stock was offered freely enough
TO force the price down a point BE-,
fore noon. The Street heard unof-'
fciaIly that 1000 shares would Be'
issued. That would be at the rate
of one share of new stock for every,
51-1O shares held. Taking this re-
port of 800, 900 new shares as a
groundwork. the Street began trad
ing in rights. buying and selling
them from so to IS cents. Those
who discussed the Pure Oil Com
pany's plans expressed the opinion
Nat in deciding TO finance itself
with stock issue the company
was borrowing a page from the
book Of larger oil companies, not,
ably the Standard Oil Company Of
New Jersey. tho Royal Dutch and
the Texas Company. Recently the
Pure Oil Company had listed on the
stock exchange 10000 additional
shares of common stock. OF this
"a. 600 shares represented stock pur-
chased from the company by the
Humphrey interests at $40 a share
and 10000 shares reserved for sale
to employees at par. The par value
of the stock is SIS.
Railroad Securities.
Strength and activity in New
Haven. as compared with most OF
the railroad stocks. was accepted as
rejecting confidence in the success
of the first step towards a solu-
ton Of the company's financial
problems. Even II refunding the
per cent European loan on the basis
proposed should be only postponing
the evil day. the market apparently
found comfort in the fact. The at
titude OF the government. too. in
coming to the rescue with loan
which will provide funds fer cash
payment Of 10 per cent to bond
holders consenting 20 the extension.
was not without influence. Hope OF
better days for New Haven, how
ever. seemed to have little inhu-
epce on the market in respect 90
other railroads which are similarly
situated. Erie, which also faces a
large maturity and which must
likewise depend, apparently upon
government aid or the willingness
OF creditors to accept some extern
sion plan. was fractionally lower.
L.ast June American Car and
Foundry common. although sup
ported bv the existence OF a re-
serve sufficient 20 pay a IL per cent
dividend for three years. sold as
low as ll5L. Today il sold above
Is.