The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1922-06-19
Street Features
MEXICAN PETROLEUM.
BY STUART p. WEST
tCopyright. 1o2zD

Thef big jump again in Mexican
Petroleum today was reminiscent
OF the way the stock used to act
when II was having its great up
ward swings in the market of 1919.
Whatever may be the truth regard
ing the supposed predicament of
short interest, the essential fact is
that a lot of new buying has been
going in Mexican Petroleum and
has materially reduced the floating
supply. This new. buying has been
encouraged chiefly by the latest de-
unexplored. This new drilling has
not gone far enough to warrant
positive conclusions. but it has laid
the ground for hope that the worry
about exhaustion OF oil wells in the
present territory may soon be over.
At the -Same time the market is
reckoning upon very favorable re-
port for 1921, due at any time now,
and it is also figuring upon the
conferences with the Mexican f.
nance minister resulting in some
amelioration in the Mexican oil
taxes.
RAILS LITTLE CHANGED.
Railway stocks were not notice.
ably sensitive to the action of the
heads of the railway unions in no
tifying the labor board that a ma
tion-wide strike was certain begin
ming July 1, If the vote now being
taken among the men is in favor,
as appears practically sure. There
may have been a little selling on
! this news, but it was too slight to
| be of consequence. The principal
effect of the strike threat was to
keep traders away from railway
shares altogether and cause these
| to re unresponsive to the improve
ment in other directions. Missouri
| Pacific preferred was heavy again,
as it was toward the close of last
week, evidently for the reason that
| the uncertain labor outlook is like
/ ly to delay action on the dividend
which has been the main incentive
| for speculative operations all along.
A dfibbling liquidation was observ-
able in low priced issues of the
type of Kansas City Southern, st.
! Louis Southwestern, Chicago Great
Western, and Wabash. On the 9TH
1 er hand, Reading felt the effect OF
STUDEBAKER.
It has been estimated that if
Studebaker booked no more orders
during 1922 it would show earnings
of approximately $50 share on
the common stock. The company
has untitled orders for $4,000 cars
New business in the second hall
year is not expected to be as good
Civ Int
the remainder of the year brings
Studebaker only a moderate vol
ume, earnings fog the full year
would be about $50 on the common
The company has $1S,000,00O in
cash discounts.
CORN PRODUCTS.
With two of its largest plant:
running, while two others are shu
down. Corn Products is operating
at about 60 per cent of capacity
Earnings for the quarter nov
drawing to a close are expected tt
show a decrease from the net in
come of the first three months. II
4 that period approximately S3.5t
was earned on each share of com
mon stock after preferred dividend
requirements which was over 81
per cent in excess of the first quar-
ter's earnings in 1921 and at year
ly rate of nearly $14. Strength o
Corn Products stock--a feature
again today-was a sign that thu
market was not making so much &C
count of the falling off in revenue:
during the second three months al
it was of the-fact that for the frs
half year the entire annual dividend
of six per cent was almost earned
on the common. Large holdings il
Corn Products were acquired con
siderablys below the present price
and there has been no temptation u
unload on the recent reaction, TO
fear lest profits get away. At tn
same time good sized short in
terest has accumulated and 70
these two reasons the market posi-
ton of corn products HAS bee
stronger than that of many of tn
other industrials.