Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1922-02-04
PROF|T-TAK|NG IN
THE LOCAL MARKET
New High Figures Made by
P. r. T., Y. @. |. and
American Stores

and higher opening this morning. In.
terest again centered in the local utili.
ties shares mecause Of the sensational
developments IN the Rapid Transit sit :
uation. That stock soon after the ini Z.
tinl dealings reached 24N, or u above
yesterdays top notch. A much more
which subsequently caused a reaction to
n,and. reaching Al, while the preferred
touched SO. The common on realizing
reacted TO 40k. American Stores is
sues also remained active, with the
common advancing to "a and the pre-
ferred to 124. but neither retained the
gains.
While the activity Of the above
shares excrted diverting influence the
dealings in the general list we're broad
and active with generally better prices
Lake Superior sold UP to 81; Bank
of North America warrants rallied tC
50A. The Philadelphia Electric issues
were well sustained and with the ex
ception Of the common touched the tor
prices of the week. The preferred reach
ing 2S. Pennsylvania Railroad made q
new high for the year at 341a, which
including the dividend taken off this
week WIS equal 10 %. lFulBu .>dNlSu'
ton ran up to 60ia.
weeks developments in the local mar.
ket. The first came in the long awaited
announcement Of the recapitalization
plan of the Electric Storage Battery
Company. giving the stockholders four
shares Of no par stock for one of the
present 500 par stock. As several
months will elapsc before the share .
holders will vote on the proposition, II
is intimated the dividend will be raised
from the present II per cent per annunl
basis to 16 per cent. which will mean
a dividend of 4 per cent on the new
stock. While there is little doubt but
that program will be carried, out. a.
evidently the majority Of the stock is
now in possession Of interests who look
more on the stock market side than on
conservative business lines. With only
200 900 shares outstanding. there was
not much room for speculative play,
but with SO0,O 900 there Is no limit for
holders regret the outlook OF making
this local favorite G. speculative foot &.
ball.
Then came along the Rapid Transit
controversy. The profit sharing propo-
sition of Mr.. Mitten and his promised
q per cent dividends took the Street
completely by surprise. Subsequently
events suggesting a bitter and vigorous
contest for control Of the company at
the Forthcoming annual meeting threw
some light on Mr.. Mitten's remarkable
generous policy. The situation is made
the more interesting by reason Of the
injection Of the operations Of an ap-
parently strong pool. Way back in the
fall. hints were dropped such a pool
was in formation and n goal had been
set which would carry the stock to
much higher prices. Those familiar
with the tangled local transit situation
could not sec any substantial basis for
such a movement. This opinion was
in measure confirmed by the stumbling
block which the pool ran into in the
early part Of December by meeting an
unexpected large supply Of stock after
the quotation crossed 10.
Gossip has it that the pool is friendly
to the Mitten management and it IL
now believed the formation of the com.
bination was induced by advanced in
formation of those policies which Mr..
Mitten made public at the meeting Of
the trollcymen last Monday night.
While intimations in local market
circles hinted at internal dissension,
the number and the standing Of the di.
rectors contestirg the Mitten manase-
ment was big surprise. 1t is stated,
the contesting interests are not opposed
to the building up process Of the Nit
ten management. but are making their
fight against what they call lone
man management" In other words, the
complaint is made that most Of the
recent important policies were effected.
or suggested, without consultation or
approval of the full board of directors.
Whatever may be the outcome Of the
controversy. the incident In all events
has injected considerable vigor into the
trading and has carried the stock to n
level where many who had the rcmcrity
to buy. when it was friendlcss. can rea
lize considerable profit for their courage.