Evening star., 1922-11-14
RAIL SHARES LEAD
SLUMP IN STOCKS
Heavy Selling. Pressure
Again Keeps Exchange
Prices Irregular.
Dispatch to The Star.

Special Dispatch TO The Star
NEW YORK, November 14.-Raii-
way bonds and railway stocks alohs
with public utility issues were the
narticular weak spot in the security
market of the day. Word had gone
around early in the day that the Coh
.olidated Gas plan would not be the
big thing for shareholders that was
expected, and the feeling quickly
spread that the same might De trus
regarding the action OF other gas any
electric light managements' "hnnl
mast TO do something highly favorapie
" ,be way of extra dividends or re-
capitalization schemes.
Rear Raids ON Rails.
For the weakness in the railway
IL, the stree, had the old explanation
that the successes of the more iau'
cal element at the polls might ieao
TO a repeal of the present .lansp ~ .
nowers of the Interstate Commerce
,,omnission. which had been used IN
recent Years to guarantee thS
a fair return "f their capltai
.,t.ain il was to he said that TINS is
.,u.-ranrc calculation at the pest.
Z,
.-sinn OF the S:X;yseventh congress
= nhyiou>Iv out of the question anu
While tn. matter may come up oeio.
:, special session next Sprhs,
,.hances are still that nothing OF tne
sort will be considered AT Nashihs ''''
before the winter Of 1870.
North American Breaks.
The violent break of points III
North American today, all accom-
pHshed within the first hall hour'
vas taken to foreshadow dlsappoint-
mcnt over the form in which anothel
distribution of Treasury assets Is
likely to be made to sharehoiders.
:rh. stock went up from around ~
~ above par on the idea of sub
.t,ntial increase in the cash dividend
which is now IS Il share. current
,arniuss have been figuring ou> over
go, and therefore 1t seemed reason :,
able that owners of the stock Snouia
,,st some of the benefit. But there
has 10 he reckoned with that constant
fear which every public utility COM
pany has Of unduly advertising its
prosperity. Instead of increasing 1ne
cash distribution there is q mint q
mother offering of stock similar 10
that of year ago.
Low-Priced Rails Weak.
Again today the low-priced rails were
weak, and they were weak While tne
h:sher-priced dividend paying rails were
holding steady. Therefore the cause
could not be set down to the rear OF
unfavorable legislation. such az tne
..epeal Of the transportation act 'tna u
he abolition of the labor board. II
his had been the reason for the sell
Iug il would have applied to all
classes of railway stock without dis
elimination. The principal eXptana
tion for the selling in the lower srade
rails would seem to lie in their mar :
ket position. They have been held
more extensively than any other class
by small outside traders who ar.
usually dislodged in decline of such
severity as that of the past week:
Otis Elevator Stronger.
It is reported that Otis Elevator
will carry over on its books to 1923
considerably larger amount of un-
Tiled orders than 1t did at the open
ing of 1922. The income statement for
he current twelvemonth is expected
20 show the equivalent of SIS share
On the common stock, and the com
pany is known to have a substantial
f"tal of cash and government bonds
The improvement in the construction
business in 1922. as well as the pros
poets for the coming year. means
greater volume for Otis Elevator.
Exchange Rates Better.
Exchange rates We're decidedly strong
today. Inasmuch as quite a body OF
financial opinion believes that the
European uncertainties have BEEN
the chief factor in the recent decline
on the stock exchange, the important
point on the stock exchange again
;oday was that If this were really so.
The foreign exchanges would have
gone with stocks and bonds. but quite
The contrary prevailed.
Sterling was up nearly 10 cents in
the pound from its low at the time Of
the first Turkish crisis six weeks ago.
French francs were more than a half
cent higher than the extreme limit of
their decline last week, and Italian
lire, while somewhat Off on the day
shortly after noon, were selling at
4.75 as against 3.S312 little more than
Il fortnight ago.
Some Strange Contrasts.
These recoveries were not consistent
International banking circles regard
ing either the Turkish outlook or Ger
man reparations. Another important
point was that while foreign govern
,nent bonds were heavily sold. as they
had been on the previous day, with
ne" low records LOT the year IN
French and Belgian issues the French
internal per. cents were up over a
point in the London market, and Brit
ish consols were likewise higher.
While. doubtless. it was still true
that there was a certain amount Of
genuine uneasiness on the part of
american holders of dollar loan, on
account of the reparations uncertainty
and what it might lead to, a great
deal of the selling represented the
throwing over of these foreign bends
by people who had been caught In the
stock market decline and were obliged d
in this way TO reinforce their position.
Most OF Selling Forced.
1t was 4 persistent liquidation,
mostly Of an involuntary sort. Stocks
were thrown over not because holders
were anxious to sell or because
there was anything in outside busi-
ness conditions or the financial out
look generally to create serious mis-
givings. but simply for the reason
that speculative accounts, more or
less overextended in the market of a
month and two months ago. had been
undermined by the fall Of the last
three weeks.
The low prices in the share list
we're made In the last hour.