Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1922-02-24
leading RAILS IN
new HIGH GROUND
Effect Of Republic Iron Pre-
ferred Dividend Suspension
Quickly Overcome

New York. Feb. 24.--The bullish po.
1ition was put to severe test in TO-.
'ay's stock market in the over might de :
..elopment of the passing OF the divi-
lends on the preferred stock Of the Re
,ublic Iron and Steel Company. The nc q.
tion of the board despite the impover-
shed condition of the steel industry
vas not generally expected and took the
street by surprise. The extremely un .
favorable statement of earnings for last
ear easily explains why the board did
t. The preferred stock broke y points.
The common nearly 3 points. which ex :
erted depressing influence on the rest of
the Independent steel companies shares,
rs it is quite generally recognized, prac-
tically none Of these concerns are in n
@trong financial position due to con.
tinued deficits. The effect on the general
ist was infnitesimal and was easily
'ounterbalanced by the renewed strength
the leadership before midday. In the
late trading irregularity developed
with weakness In some of the steel and
tobacco shares.
Once more the market displayed the
anne phenomenal absorption capacity.
The initial transactions reflected con-
|lderable accumulation of profit taking
sales over night, the realizing being
further prompted not only because of the
unpleasant Repub ic Iron and Steel in
cident. but also because most of the
leading commission houses were openly
tdvising profit taking and against fur
ther buying on all the bulges.
IL was apparent before the market
the forward swing had not lost any
of its FORE. This was particularly
true as to the rail division. which
responded readily to the concerted buy.
.ng movement. New highs were reg
tstered by Canadian Pacific. Rock Is.
land issues and Union Pacific. The
turpover was especially heavy in the
Rock Island issues, with high records
frr the preferred shares.
The entire railroad list, including
both the dividend and non dividend
paying stocks, reflected broadening
inquiry, some of the lower price issues
showing greater degree Of anima-
tion than the investment group. The
concerted movement of the group may
have been for the purpose of facii-
tating realizing in the recent active
industrial leaders nevertheless il had
both stabilizing and stimulating effect.
Popular trading stocks were quick to
rntc in the afternoon. Interest con-
tinued centered to n large extent in
wide assortment of low priced railroad
issues. especially St. Paul. Rock Island
and the Southern and Southwestern
shares, all of which scored material ad.
vances. Republic Steel preferred was
supported and regained GA points of
its earlier severe break. Substantial aG-
vances were also effected in Coca Cola,
Chandler Motor, Houston Oil, Com
putting Tabulating Recording and
kresgc, L. S. Retail Stores on the other
hand. broke 1 points on heavy selling,
on misgivings as to maintenance of the
present 6 per cent annual rate.
In the last hour the market ran into
another heavy profit taking movement
which produced great deal of irregu.
larity. While the equipments and motor
specielties made further gains the steel
and tobacco shares reacted more
sharply.
Foreign issues continued TO feature
the stronger tone of the bond market,
domestic issues, including rails, devel-
oping irregular tendencies on profit.
taking. French government T1as and
SIS were at new high levels and the var
ious French municipals were moderately
better. Berne 6s. Zurich IS, Toxic IS
and japanese governments also I'M
proved. st. Paul AZ and convertible
and refundng 4ias and 5s rose to 10
points on active dealings. Missouri,
Kansas and Texas issues were mixed
Slight reactions occurred in Mexican
government AZ. Pennsylvania general
5s. Illinois Central and SeaboaH Air
Line issues. Liberty bonds were firm
on comparatively light trading.