Evening star., 1923-11-01
COAL l.SHARESLEAD
MA|R|KET. | ! ! I! ADVANCE |
Heavy Profit Taking Slows
Up Many Stooks-0iIs
-, Display Weakness.
BY STUART p. WEST.

Special Dispatch to The Star. =
NEW YORK, November 1.-The
stock market today ran" into heavy
profit taking, as was to be expected
after. a rise as violent as on Wednes-
day. This selling was large enough
at times to cause consderab Bile 'irregu-
larity,. but, on the whole, it was well
absorbed. .
AS the industrials .s,ackened their
pace the rails were taken UP. But in
the afternoon the industrial favorites
came to the front again under the
lead Of American Can and American
WOODEN.
Chesapeake and Ohio was the leader
of the rails. Returning less than
per cent, 1t is selling out of line, and
the high price evidently reflects con-
hdence In an increase in dividends.
For FIVE years beginning with 1918
Chesapeake earned we'll over per
cent on an average on the stock.
The low during this period was 6.67
per cent in 1921. In 1922 1t earned
more than 10 per cent, and so far
this year. even after allowing for the
dividend on the new preferred stock,
it has been showing earnings at the
rate of more than I3 per cent on the
common.
Other Coal shares Up.
Moving with Chesapeake and Ohio.
other coal road stocks were conspicu-
ously strong, among them Baltimore
and Ohio, Reading and Lehigh Valley.
Short covering was responsible for
the rise in ST. Paul preferred and
Northern Pacific, although in the case
of the latter calculations were a good
deal changed by the extraordinary re-
closed in the September statement.
Wabash preferred was active above
SO and Southern Railway above "a.
Atchison at 81 was nearly points
so9ys so0ys pyayloas,y, wS1os II was twenty -four
The heavy selling in Texas Com
pany. carrying the stock down to
considerably the lowest it has yet
sold this year. seemed to, give point
to Wall street rumors that the COM
pany is looking around for addition
al cash. The talk was that this would
be found in one of two ways. either
by new financing or by cutting that
dividend. The predominant view was
that the former was more probable.
Other. oil shares were more or less
unsettled by the weakness in Texas
Company, although 1t was recognized
as being special case.
There have been rumors that Cos
DEN company would issue more pre-
ferred stock, but today a fiat denial
of the report came from the head
of the company This did not .allay
the fears of many in the street. how
ever. that Cosden might be forced to
seek new funds to carry on. We'd
nesday and again today. 1t was. COM
mon gossip, moreover, that Cosden
would pass the preferred DIVIDENDS
But against this the president or
Cosden company was quoted as nav
ing also said that the executive COM
mittee had decided to continue the
present distribution. Cosden is maxi
Ing money. how much Is not known
just now.
American Can Gossip.
The report persists that American
Can directors will declare, an extra
dividend of at least 81 a share before
the, year end, but this does not
coincide with information from
usually well informed persons. The
official consideration of higher or ex-
ira dividends on American Can, and
that the company Is likely to post
pone' such action until 1924. In the
believed to have earned at a rate
slightly in excess of the 1929 net
income of $3.50 a share and for the
full twelve months the $50 figure Is
expected to be reached. e..
Wall street is mindful of the fact
that II any company in the textile
industry can make money American
Weolen. Can and this consideration
has tempered the rather pessimistic
esLnnSs and 5,Yaea
income of approximately $3.50 a
share Is anticipated this. year. This
would be about 81 less than in 1922.
It Is expected that in the last quarter
dividend requirements. If the first
half of 1924 yields as little profit 1t
is possible that the present dividend
rate will be in danger.