The Birmingham age-herald., 1923-04-03
INCREASE IN TIME MONEY IS CHIEF HAPPENING OF DAY

NEW YORK. April 2.-A sudden Dear" drive on railroad shares, with Union Pacific as the principal target, brought about a sharp reaction in today's stock market after an initial period of strength. One of the most significant developments of the day was the raising of the bankers ask ing price for time money from 5 1A to 5s4 per cent, the highest rate since October, 1921, indicating the in- creased demand for commercial credit
 All sorts of unconfirmed rumors were current in the financial district as to the reason for the selling of Union Pacific. These included a pki- sible cut in the dividend below 102H which expert observers do not be- lleve Is Justified in the current earn tngs; speculative disappointment over the fracture to increase the demand on New York Central stock, a large block of which Is owned by the Union Pacific: prospect of re- duced earnings by the increasing di version of traffic through the Pan- ema canal because of lower rates by the water route. and testimony of Chairman Lovett before the inter Btate commerce commission to the effect that the railroad consolidation proposed by Hale Holden would, in effect. benefit the "Hi1l'' roads to the or the group.
 Union Pacific dropped to 1854 and 4hen rallied to 1864, off 2A on the day. Net losses of l to nearly 3 points also were registered by New Fork Central, Baltimore and Ohio. 6outhern Pacific, Southern Railway Fsxas and Mexico and Delaware and Hudson each closed S1a points lower. Some of the selling in this group eAine from traders who bought Stocks weeks ago in the belief that D boom in this group was imminent end then became discouraged by the Disappointing February earnings Atatements.
 Industrials also were hard hit. heavy selling for both accounts be- Ing noted in such recent favorites as Baldwin, American and Lima Loco motives. studebaker, American Wool en. American Can, Corn Products, Am merican International Corporation, Pacific oil, the Pan American issues, General Asphalt, Producers and Re- liners, United Retail Stores, U. S. In- Nustrial Alcohol, Union Bag and Paner and Kelly sprin gfield Tire, all off 1A to 3A points. Pacific oil Established a new low price for the year, below 70, on rumors of a pos- tsible cut or passing of the next divi- Aend.
 [ In the early trading new high rec RIuS were eSlaDllSNed by Marlan0, Shell Union and Skelly Oils, Century Ribbon and Owens Bottle, but the gains, which ranged from to 215 points. were materially reduced Or converted into losses before the Close. Maxwell Motors A was one of the few conspicuous strong stocks, One sale of 32,000 shares represent Ing the last block of stock held by local banks which took charge when the company was reorganized two years ago. Current earnings of the company are reported to be at the rate of S35 a share.
 Call money opened at 51s per cent and advanced to 6. The time money market was quiet. A large volume of new commercial paper made its way into the market, with prime names reported as about evenly di- vided between and 5A per cent.
 Due to the Easter Monday holiday abroad, trading in the foreign ex- changes was quiet. with no impor- tant changes in rates.
 O O O Financial.
 Days total sales, 1,262,ooo shares
 Twenty industrials averaged 1O1.51; net loss, 1.24. High 1923, 105.53; low, 96.96.
 Twenty railroads averaged s5.s4; net loss. 1.S1. High 1923. 90.s3; low 64.53.