Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1922-03-25
CONTINUED GOOD
DEMAND FOR PIX.
Weeks Operations Indicated a
Widening Interest in the
Local Stocks

ue continued StrcnRtH anu u,l,'.'
Of Philadelphia Electric and Phila-
standing feature of the trading in the
local market. There was still a good
demand for the, former. holdsig the
stock firm at the best price of the
week, 265s, despite the general recog-
milton that the movement to large eN-
tent was in the phraseology of the
street merely window dressing TO
pave the way for financial plans the
management has in contemplation. .
Absorption of Philadelphia Rapid
Transit was again in evidence. but the
stock, after touching new high for the
week at 26as, later reacted to 26A. The
firmness of Pennsylvania Railroad was
the next prominent development. An
active demand sprang up shortly after
the opening, which advanced the quo
price Of the year.
Dealings in most of the other local
stocks was on small scale. a point
decline in New York Railways to 1917
was a reflection of disappointment i'll
the failure of the board to take up the
dividend question on that issue. Lake
Superior Corporation was in good de-
mand, reaching 01a. although It did not
retain the full gain, while keystone
Telephone made a new high at 10. u.
G. l. yielded fractionally OH odd lot
transactions. Electric Storage Battery
was stronger. but did not reach the
higher quotation made on the big board.
The weeks developments and opera =
tions in the local stock market indicate
! continued widening of interest and Il
rapid return Of confidence on both the
part of the investing and speculatins
| public. There is no place under the sun
where sentiment changes so quickly or
so rapidly as in the market world.
Quite number of the local stocks which
| not many months ago We're almost abb
solutely fricndlcss are beginning to re-
fleet IA rcawakening Of n speculative in
tcrest. While this has been more
| noticeable among what are called the
| inactive or obscure issues, it applies III
n most convincing fashion to some of
the high grade issues. In the latter con =
nection Pennsylvania Railroad is Il n6ta .
BILE example. Those who only but a short
time ago saw nothing but disaster ahead
of this accepted standard of the Ameri-
can transportation industry now are
| the loudest in singing its praises. 1t Is
not surprising. because the wonderful
comeback" of the system has been a
revelation. even to the StancheSt friends
of the property.
It has not been so long when grave
fears were expressed of the ability OF
the management to maintain even the
reduced dividend payments of 4 per
cent per annum, while now the restora :
tion of the long established 6 per cent
rate is considered within hailing dis
tance. The Pennsylvania, like most
of the other big systems. passed the
peak of the troublesome times last year.
! by the drastic retrenchment policies,
which have served to bring out the best
that was in the railroad men of the
country. what were thought to be in
surmountable obstacles were easily over
come. 1t required a great deal of in
genuity. great deal of pruning. Il
! great deal of economy, but the results
are shown in the climbing net income
/ despite the shrinking Of gross business
1t is unofficially stated that net income
of the Pennsylvania for the first quarter
of the current year was not only sutli
cient to meet all proportionate require
ments in taxes. charges, interest anC
dividend, but also left very com.
Portable surplus. In the meantime
within the last six weeks there has
! been pronounced improvement il
traffic movement all along the system
which is confirmed in the increase from
80 per cent to 20 per cent in the pro-
duction capacity of the steel industry
With this basic industry showing sucl
rapid strides. there can consequently bt
expected a similar Quickcning in til,
tributary industries, which, in turn
means an increasing of tonnage of botl
the raw and finished material for thu
transportation lines. As the Pennsyl'
vania system touches and accommodates
such wide diversity Of industrial in.
terests. the Improvement of earnings o
that system accordingly can be safel.
accepted as n reliable and true baron
cter of returning prosperity of the gen
eral business of the country.