Evening star., 1923-04-17
MARKET DISPLAYS
MUCH F|RMER TONE
Southern Railway One OF
Strongest Stocks in To-
days Busy Trading.
BY STUART r. WEST.

BY STUART r. WEST.
Special Dispatch to The Star.
NEW YORK, April 17.-The action
# today's stock market. following the
rather disappointing results OF the pre-
vious day. demonstrated the truth OF
the observation that the market Is In
stronger hands than 1t was two weeks
ago and is in much better condition than
It was a month ago.
No sustained effort was made to-
day to attract an outside following:
but the ease with which selected
stocks were up. one after another.
showed that offerings around the re-
Gently current prices were not large.
Two points were made In connec.
ton with the advance in General
Motors to 17-one. the report that an
advance IN prices was coming, the
other that present earnings Justly
an increase in dividends. and that
this Is not unreasonable to expect
later on. Dupont. as the big holder
of General Motors. naturally had
another sharp inward jump. Steel
common at one time was up point
strong hint by Chairman Gary that
an extra dividend Of some sort was
probable.
Southern Railway Up.
Among the rails Canadian Pacific
made new high above 1853. and
Southern Railway rose on large trans
actions TO IS. where II was only a half
point away from the best of the year.
AS was pointed out several days ago.
there have been signs that the old
pool in Southern Railway was getting
busy again. basing its calculations
upon current earnings which are run,
ming al the rate of Z per cent and
upon the expectation that with the
business outlook the way 1t Is now In
the south the traffic volume will keen
At a maximum for long time to
come.
United States Realty and Reynolds
Spring were features among the spe-
cialties. the latter still responding to
the statement which has been printed
more than once that the company Is
earning at the rate Of IS a share.
Two noteworthy exceptions to the
general tendency were Marine preferred
which broke to new low, and Inter
national Paper.
Texas Company Plans.
1t mas been learned that the present
plans of the Texas Company call for
an increase during 1929 OF 40 per cent
in its gasoline production. and by 1924
It Is said. gasoline production Of the
company will have increased 60 per
cent.
International Paper was a weak fea-
in some quarters as further recognition
of the none too favorable condition OF
the companys business as shown in a
comparison of production and financial
return during the past three years. In
1922 International Paper turned out
$4,000 tons of paper against $4,000
tons in 1921, but in spite Of this 80 per
cent increase in 1922 the company
showed an operating loss. In 1921 the
company made an operating profit.
The March income statement Of the
Baltimore and Ohio Railroad Com
pany will show the largest gross for
rier. according to reliable sources
The figure will be something like
$4,000. 900. it is said. No estimates
are available regarding the net in
come.
Todny's Financial Review.
The stock market was again the
main point of interest in the finan-
cial situation today. Its strength
was of much Significance in view of
the doubt which arose in the minds of
suit of Mondays trading whether
confidence in the general business
outlook was really as keen as it ap-
peared to be on the surface.
The days dealings showed that the
market. having completed its read
justment after last months specula-
tive eXceSSeS, was once more respon-
sive to favorable trade news and to
f1attering estimates of company earn
ings.
The advance in money rates was
OF little consequence, for even the
speculative element has come TO un-
derstand that the main thing In the
money market is not the fluctuations
in the stock exchange call loan sup
ply. but the cost of federal reserve
redscounts. So long as the banks
refuse to avail themselves Of the re-
discount privilege the way they have
been there is little likelihood Of
further increase in rates on long
term credit. and 1t Is these which
count the most.
Rail Wage Demands Vital.
The demand for higher wages on
the railroads Is a consideration of
doubtedly the employees will have
q strong case before the Labor
Board. first, in the increased cost OF
living. and. second. in the very gen.
eral advance In wage schedules In
other industries. Operating ex-
penses are already swollen beyond
the ordinary by the large appropria-
tions that are being made for mainte-
nance Of way and equipments. II
on top Of this there was to come a
would necessitate much thinking as
to the extent to which the carriers
would be able to retain in their net
earnings the exceptional gross
DFOntS WniCn seem wen assured lot
the remainder of the year.
Railway shares were not disturbed
by any such misgivings today. They
were not as prominent in the market
as were the industrials. but they
were stronger and appeared to be
attracting more interest.
Another Break in Oils.
The markets were inclined to place
the same Interpretation as the news
dispatches upon the speech of the
German foreign minister, mainly
that 1t was a feeler on Germany's
part toward a settlement of repara-
tions.
In the last hour fresh selling broke
out among some of the oil shares
Texas Pacific Coal and OIL dropped
more than a point. Weakness con-
tinued In the shipping stocks and in
Computing. Tabulating and Record
Ing. the latter on reports of an Inn
pending issue of new stock at rs
that Is, 6 points under the price at
which the shares opened this morn
ing.