The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1922-05-31
court DEGREES
ARE REFLECTED
IN RAIL SHARES
RY sTrART NEST.

Wall Street. n. Y, May 31.-Trad-
ing on the stock exchange was re-
surned after the holiday with
number of cross influences at
work. The decision in the Reading
segregation case had not been hand
ed down until after the close on
Monday. The decree decreeing the
separation OF Central Pacific from
Southern Pacific had been put out
too late in the Monday session for 1t
TO become generally known. These
were developments therefore re-
manning to be measured in the mar
kets today, and at the same time
there was the merger of United
Retail stores with Tobacco Pro-
ducts. which, although forecast for
sometime, was news as far as the
actual terms were concerned.
The Reading second preferred
holders had won their contention
that they were entitled to equal
rights with the common share
holders in the distribution of coal
company assets. The common
share holders who had won in the
lower court, had lost in abe upper.
Consequently, right at the start of
the day came a rapid upturn in
Reading preferred stocks and an
equally rapid decline in Reading
common. Southern Pacific stocks
went somewhat lower for a while
but the more significant incident
was a break in the Southern Pacific
four per cent bonds, secured by
Central Pacifics stock as collateral
"a break almost as violent as was
their jump in the last half hour
Monday.
This undoubtedly reflected the
sober judgment in banking circles,
as against the first impulsiVe view
of the speculative community, that
the new transportation act has so
far nullified the old Sherman law
that a Encouragement of the South
ern Pacific and Central Pacific
properties can be effected which
will keep them under the same
head, and still be within the law
There was no reaction to the
formal announcement of Germany's
unconditional acceptance of the
PREPARATIONS program. Continental
exchanges were somewhat lower,
but the decline was insignificant
The center of interest lies in the
bankers conference at Paris and
its action regarding a German loan
1t is not doubted that Germany will
have special resources which it can
put up as security. but it is very
doubtful whether it will be possible
TO float bond issue of magnitude
sufficient to cover the deficit en-
tailed by the indemnity payment.
Meanwhile there is the further
problem of the effect upon German
exports of the rise in the marks
which certainly follow the obtain
ing of a large credit abroad Even
such slight improvement as has oc-
CURED in mark exchange during
the last two months has resulted in
such falling. off of exports that
where as February there was an ex-
port surplus of 2,492, 100000 marks
and in March an export surplus Of
1858 100000 marks, in April i'm
ports rose $3.50, 100000 marks above
the outward movement.
There was great deal of irregu-
larity in the stock market of the
day. Realizing sales were violently
going on in a very large way while |
attention was being concentrated
upon few leaders. But this has
been characteristic of the specula-
tive campaign all along. 1t 81 in !
TACT a modern speculative market. |
The market nowaways is too big an
affair for everything to move at
once. Hence the normal thing is a
series OF group movements, sue
ceedlng one another with bewilder- !
ing rapidly. Railway stocks did
little after the first hour or so. A
great variety of industrial special !
ties, however, were taken up. At
one time it was the sugars, and an
other time the Linseed Oils and the !
Cotton Oils, and another the Motor |
Accessories and toward the end of |
the afternoon the independent oils. |