Evening star., 1922-10-06
BIG, RIPE 'MELON"
IS CUT BY S. 0. CO.
Stock Dividend of 200 Per
Cent-Market Somewhat
ErratiC.
BY STUART p. WEST.
.cial Leased Wire to The Star.

By Special Leased Wire to The Star.
NEW YORK, Octobet 6.-Today's s
stock market paid some attention at
the outset to the latest Turkish news.
When it was found, however that
the break off of the peace negotiations
was only temporary and that the con-
ference would probably be resumed
the first of next week the incident
ceased to exert effect.
No great amount of interest could
have been aroused in the possible
recrudescence Of the European war
scare when the other markets out
side the stock exchange were SO un-
concerned. Sterling exchange came
down rather sharply for a while. but
this was exceptional Foreign gov
ernment bonds, after starting in
slightly lower. regained their loss.
Neither cotton nor the still more SEN
sitive wheat market was affected at
all
200 Per Cent Dividend.
From Wall street point of view
the most interesting news of the day
was the second big recapita@ization
plan announced by a member Of the
Standard Oil group. The 200 per cent
stock dividend to be paid on Standard
Oil Of New York follows the 100 per
by the Standard Oil Of California, and
the reason is the same in both in
stances. namely, that earning capacity
ana treasury assets have outgrown
capital account
The immediate result in the market,
naturally enough, was another eager
rush of buying orders into the Stand
ara Oh stocks, both in and out Of the
stock exchange
However, an object lesson was given
IN rather abrupt decline in Standard
oll of California shares. thus demon
strating that it is possible for the ef-
feet even of the most liberal melon
cutting to be exaggerated.
This lesson had a SOLDERING influence
upon the afternoon dealings.
Movements Confused.
AS the day went on, the price move
mentS became more and more con-
fused, while the Standard Oils were
being bid up. Mexican Petroleum and
Mexican Seaboard were breaking
sharply.
Such speculative favorites as Bald
win Locomotive and Studebaker were
actively sold, but while this selling
was going on the railway shares were
taken up.
Everybody knows, of course. that
the general motive back of invest
ment and speculative operations in
railway stocks is the certainty of eS-
cePtionally large earnings and 4 rec
ord-breaking traffic movement. at
least during the rest of the autumn
, and winter.
But what Wall street is more in
terested in is to what extent these
more profitable results for the trans
portation industry, will be passed
along to stockholders. 1t was the
possibility of dividend increases that
was in the minds of buyers of stocks 8
like Atchison and New York Central.
Invincible OIL.
With the Wall Street atmosphere lit
orally surcharged today with ruElors Of
deals affecting oil companies. Invincible
Oil came in for more attention. Inter-
estS associated with previous moves in
the stock claimed that they were doing
nothing and professed ignorance of what
was going on. But in other quarters it
was said that a new pool had been
formed and was putting the stock upon
the strength of rumorS of an alliance
of some sort with one Of the Standard
Oil companies. There We're also intima- :
tionS that plans were under way to get
rid of the s per cent convertible bonds
and in order to accomplish this it would
he necessary for the stock to sell higher.
This latter, however. was purely specu-
lative gossip.
Houston Oil.
There was nothing particularly new in
the houston OH situation TO explain the
sudden rise in the stock. Some specu-
| lative people We're thought to have
taken hold of it on the idea that it
, was behind the market. that the COM
pany is now believed to be under
Standard Oil control. and that as a
member Of the Standard Oil group the
stock was entitled to have its move
with the rest.
Southern Railway.
Southern Railways annual meeting
is scheduled for Tuesday, and the an
ticipation is that some action will then
be taken about dividends on the pre-
ferred stock. The report today was
that a 81 cash dividend would be de-
clared.
Fisher Body.
The Fisher Body stocks-that is,
both Fisher Body common and Fisher
Body of Ohio preferred-were in de-
mand at higher prices today. The
advance in these stocks is in meas
ure discounting the record business
being done by both companies.
At the present time at least so per
cent of the automobile business is
being done in closed cars. and the
Fisher companies, while making the