The Washington times., 1922-07-17
Market Comment
BY w. 8. COUSINS,

serviceD
NEW YORK, July l7.-Leaders
in the petroleum industry have been
somewhat surprised at the recent
price developments in crude oil and
are at a loss to understand the
reason for the cut of rs cents a bar.
rel in the price Of this material. II
was popularity supposed that the
threatened extinction of some Of the
important sources of Mexican Oil
would have led to- conservation in
crude petroleum rather than the
letting down Of the bars.
On the other hand, competition be.
tween the oil companies has been
very keen and some companies
would rather be known as the
originators Of price cuts than trail.
ers in such developments. Then, too,
the increasing surplus of crude oil in
American fields has been an impor-
tant factor, the geological survey re-
ports showing that during the past
year l00, 900 900 barrels Of crude oil
has been added to the storage sup
plies in this country.
In some sections of the speculative
market the magic word radio" is
beginning to take the place formerly
occupied by Oil and gold as the new
creator Of quick fortune. Within
the last three months 1t Is reported
that over 1900 new corporations
have been organized to manufacture
radio apparatus. Some Of them haV e
excellent technical skill behind them,
but others are not so good. Unfor.
tunately, il is usually the second.rate
class that issues the most alluring
circulars appealing for the funds OF
investors and making the most ex.
travagant promises Of profit to them.
Millions OF dollars have been put
into these companies, and more than
likely other millions will follow. Al.
ready the losses OF investors have
run into millions, and doubtless all
the frauds have not yet been uncov.
cred. Offerings of radio securities
OF any kind should suggest to in.
vestors the motto posted up at rail.
road crossings: Stop, look, listen!'
The Interstate Commerce Com
mission has given its approval 10
the New York Central's plan for ac'
quiring 100 per cent control OF the
Big Four railroad. in an order au
thorizing the Central TO issue
s23, ,47S $50, par value capital stock
and to use this stock in payment for
the common and preferred shares vi
the Cleveland. Cincinnati. Chica &C
and ST. Louis railroad. At the pres
ent time the Big Four has an au
thorized capital stock consisting OF
$50 900 900, consisting OF 500. 900
shares Of common capital stock and
100, 900 shares Of preferred stock
each OF the par value of 500.
Both classes OF stock have voting
rights and the preferred stock has
a noncumulative 5 per cent prefer
ence as to dividends. At the present
time, the New York Central owns
$50 ,207 900 OF the common stock and
SIC, 1921 900 is in the hands Of the
public.
The new week on the principal for
eign bourses. as disclosed by today's
cables. indicates the temperance oi
uneasiness, due to unsettled finauC Ia
conditions on the Continent. Ger
many has asked for the remittanc.
of the last 80, 900 900 gold marks paid
on reparation. This is a small mat
ter, unless II be considered that to
replace this amount Of real money
Germany would need to print up four
billions in paper marks.
British bankers and business mer
! express general abstraction over the
statement Of the chancellor concern
ing the liquidation Of Great Britain's =
war debt-this entirely regardless OF
the developments in this situation r
Germany and France. As Ger
many's request for a moratorium
was not unexpected, II failed to un
settle the Paris bourse to any great
extent, though French investors are
anxiously awaiting developments ir
international finance.
Some OF the leading brokerage
houses in the financial district have
been exerting themselves to the VI
most to discover for their custom
ers the safest and most profitabl,
avenue for the investment Of theil
funds during the dull season. As 4
rule. they lean TO railroad stock,
and bonds, for the double reason that
securities OF this class have not kep
pace with the general rise in tn,
market and that no department o.
American business Is likely to show
such a remarkable recovery durinc
the next year or so as that OF the
TRANSFORMATION companies. Railroad
stocks are generally the last to b.
affected by a sustained recover,
from long and tiresome bear mar
ket. and the recent upturn in rail
road oacnrjtiao 10 haiInd n. . ,.1.