The Washington herald., 1922-05-21
RAIL RATELEAD
RISING MOVEMENT
IN SLOW MARKET
Steels, Motors and Tobias.
cos Follow, With New
High for Former.

NEW YORK. May 2o.-stocks con-l
tinued their forward movement oil
yesterday. with strength in the rails
conspicuous feature. Steels and
motors and the tobacco issues were|
not far behind as groups. but whfie|
u. s. Steel made another new hirh|
record. pronounced weakness was ap-|
parent in shares of some OF those|
companies which have been mentioned
in connection with the six-company|
merger, notably Republic Iron and
Steel and Midvale The marked
showed some hesitation after the
first hour. but the tone remained
good.
steel Mergers Are Hobby.
Following the announcement Of the
arrangement Of a merger Of Bethle-
hem and Lackawanna steel, reports
Of mergers and consultations have
had a determining influence on mari
ket movements in many Of the I'm
dustrial groups on the stock exchange
The only Official news that came into
the Wall Street district, however. was
that Of the Bethlehem-Lackswan
steel combination. but an advance
Of over 5 points In Midvsle Sseel dur-
ing the week was construed as in
dicating that those concerned IN the
bnerger Of the two companies had
arranged TO absorb Midvale Steel
also. Yesterday Republic Iron and
Steel was brought forward as an1
other company TO be included IN a
new merger. but no definite informa1 !
ton came into the Street when that
stock moved up to a new high for
the year in yesterdays dealings ~
troleum stocks were grouped together'
in the past few days. several corn4
panies being named as about TO con1
solidate, and copper stocks were also.
named as having been selected irI
the formation OF new companies. Al
plan for consolidation OF sugar com1
panies has been under consideration
and practically close TO consUmmA1
ton for some time.
Rails Are Included.
Stories Of consultations also in
cluded important railroad systems
and these stories were effective in
causing special interest in a number
Of the leading railroad properties
New Haven was spoken Of a being
desired by Pennsylvania interests. and
some positive statements were rnade
about closer relations being Elected
between New Haven and Pennsylva !
mia than had existed in the past!
although both these companies havel
been looked upon as being practical
ly under the control OF one imDor
tant banking interest These state
ments led TO cofjecturss about de-
velopments and closer relations be-
tween other companies that can bel
connected into new systems or be,
absorbed by some Of the stronger
lines
General Motors Corporation com
mon stock was one Of the Tea ture !
Of trading during the latter part a
the week. the buying o. this isSuel
having been by interests which ard
regarded as representing the "in1
slders,' with the result THAT O, move
up to a new high quotation on thd
present advance. On Friday il wa
announced that during the first quarl
ter Of 1922 the company earned 4
surplus available for dividends "A
around sS,250. .OOO and Il was stated
that during the first SIX months o'
this year the company Will show all
preferred and dcb,n,ure stock div
dends earned with the surplus ,guaI
TO more than 81 a share on the com1
fmon stock. Since January ] md
corporation has reduced it, han
loans from S75.OOO. 600 20 SO 500 uaH
and according 70 those familiar v.t-l
affairs o. the company. hy July I iE 4
bank loans will have been reduce
to below Sl", ,00O. 600. The manage
ment Of the corporation has undel
consideration a plan calling FOR 1
readIustment Of the capital Of Ind
company which may involve chang
ing OF the par value Of the commou
stock from no par value - eithe-
$50 or 500 a share and in1DrUvIn5 I
the position ~ the preferred 0uH f- /
benture stocks by reducing The
amount which the corporation is nos.
authorized to issue.