The Washington times., 1922-08-15
Market Comment
Copyright. Isas, by Cosmopolitan News
Seryice)

Service.)
NEW YORK, Aug. 15.-Once again
the reparation question is para
mount, the reparations conference
has reached a deadlock and the ef-
feet is seen In international financial
markets. Exchange on Paris has be-
come wobbly and Italian markets are
also unsteady, while German marks
reached another low point today.
The German reparation payment Of
SO, 900, 900 gold marks, due today,
will not be paid In full, and II Is yet
problematical how much grace will
be allowed the German government
by the French. American business
leaders cannot ignore the complica.
tons that are constantly arising in
the reparation tagle. Not only are
they depressing TO general sentiment,
but they are retarding the return Of
normal business relationship without
European customers.
Some of the shrewd observers in
the financial district see in the big
demand for stocks Of mercantile es-
tablishments a condition which will
closely approach q buyers stock In
the coming fall. This will mean un-
precedented prosperity for the big
retail establishments. even II 1t does
embarrass those who are compelled
to make their purchases there. Many
lines Of business have been plugging
along on a hand-to-mouth basis and
their exhausted supplies. The result
will be a grand scramble when the
time comes, with prices mounting
H. a n q IN a
wholesale end of business. The In
terruption Of transportation by the
recent strikes, and the heavy re.
sumption OF commodity transporta.
ton in the fall, will, no doubt, add
impetus to the big retail movement.
II may be noted. in passing, that a
number Of representative dry goods
and hardware concerns have Joined
the grocery trade In offering their
securities for public sale.
In a falling market, as In q rfs.
ing market, merger reports and
rumors are not lacking. and quite
often they are responsible for the
steadiness in certain groups of
stocks, while others are weakening
under selling pressure. Perhaps II
Ia only the effects Of fertile
imagination. but at the present
time the street is full Of rumors
Of railroad mergers, the latest en-
bracing such prominent roads as
the st. Paul and the Pennsylvania.
Needless to say. merger OF these
roads would result in q prominent
transcontinental system, but 1t Is,
Of course, problematical whether
the officers Of the roads concerned
have ever given any thought to the
matter.
Some Of the recent buying of
New York, Chicago and st. Louis.
the Nickel Plate road" has also
been attributed to this influence.
The Nickel Plate has three class,fi-
cations of stock outstanding: Com
mon, first preferred and second pre-
ferred, all paying 5 per cent divi-
dends. The common Is now selling
at SO, the first preferred at 81, and
the second preferred at 81. all rep.
resenting important increases over
prices which prevailed In the early
part of the year.
The chairman of the stockholders
protective committee of the Man
haitian Railway Company has stated
tnat Wnlle deposits OIL stOCk unuer
the provisions Of the marlborough
Manhattan readjustment plan were
in excess Of so per cent, the
amount was still insufficient to as
sure the success Of the plan. To-
day is the final day for deposit,
but II is believed in some quarters
that a short extension will be
given.
The report of the California Pc
troleum Corporation for the six
months ended June 80. 1922. shows
a net income of 81 ,307 400, which,
after preferred dividends, Is equal
to s641 per share on $14.S77 ,005
common stock, against a net in
come OF $1,520.6S5, or s7.7s per
share, on the common stock in the
corresponding period of 1921. After
deducting preferred dividends Of
$353.550 and provision for redemp-
ton Of preferred stock and the
bonds of subsidiary companies
amounting to s111,707, the surplus
was $S42 ,23S.