Evening star., 1923-07-24
DOWNWARD MOVE
IN LATE TRADING
Rails, Oils, Motors and Equip
ments Take Rest of List
to Lower Levels.
BY STUART p. WEST.

Special Dispatch to The star.
NEW YORK. July 24.-Continued
weakness in shares of the northwest
ern railroads was one of the chief
incidents in the market today. Losses
of a point to more than points oc-
CURED in Great Northern preferred,
Chicago and Northwestern, st. Paul
preferred and Northern Pacific.
The reasons for the selling in this
quarter have quite often been pointed
out. Great Northern is earning about
81 per cent against dividend require
ments of per cent. Northern Pacific
and Chicago and Northwestern are
earning less than per cent and dis
tributing ) per cent. st. Paul will do
we'll if it more than covers fixed
charges this year The main thing is
that there is no margin in any of
these cases to set against losses
through any reduction of grain
freight rates and as the result of the
depression in the wheat trade. .
Oils Also Under Pressure.
The fall in the northwestern issues
discouraged any attempt at opera
rions for the rise in other railway
shares. At the same time, belief that
crude oil prices will be cut again be-
fore the end of the week caused con-
tinued pressure against the oil
group. The weakness In these two
directions had an unsettling effect
upon the general list. 1t did not
bring in any important selling. but
it dragged prices down generally. 80
Specialties. like Stror~hera'~ and
Stewart WarreH savihg had a par
ticul" Tiy rapid upturn. were more
aensitive than the average to the re-
dictionary movement. Studebaker and
Chandler also came down rather
easily Some special weakness de-
veloped in independent steel stocks,
apparently anticipating that the mid
week reviews Will not make Stfmu-
lating reading.
Leather Figures Poor.
Intima tions that the course of the
leather industry was disappointing were
borne out by the Central Leather figures
for the second quarter. This company
made Il fair profit during the first three
months. but during the second quarter
it failed to cover bond interests. Cen
trail Leather stocks weakened again aft
Cr the report came out.
The ease with which such leaders as
Baldwin Locomotive. Studebaker and
Pan-American yielded after only a mod
crate amount of selling showed the mar
rowness of the present market. Bald
win. which had opened down point and
rllied Il half point to 122, dropped below
comotive received better support when it
got down to 90.
Little Financial News.
There were no new developments
of consequence in the financial sit
uation today.
Predictions in the cable dispatches
that it would be week or more be-
fore France sends in her reply to the
British note on reparationS tended
to restrict trading in the exchanges
and were also felt as a curb upon the
investment markets.
On the stock exchange business was
small and the price fluctuations were
controlled entirely by professionals.
The uncovering of a number of weak
spots among individual stocks led to
ing attitude. and operators who deal
for quick turns were mostly working
for lower prices.
American Locomotive.
More has been said recently con-
cerning the possibility of the dividend
on American Locomotive being in
creased from the present So to $6 a
share at the August meeting. 1t is
also reported that there is short
interest, pretty well scattered, in
the new stock, aggregating some
thing like fifty thousand shares, all
of which has been due by the shorts
since before the split-up of the shares
two for one.
Gossip in the street today had it
that the recent strength. in Overland
preferred has been due chiefly to
antIcipa tions of the payment in the
near future of accruals on this issue
and the likelihood that the voting
power would revert to the common
shareholders.
The Improvement in American Cot
ton Oil stocks during the past few
days has been explained, first, by ac-
tive short covering, and second. by
reason of the fact that the earnings
of this company and also Virginia.
Carolina Chemical are understood to
have been better in the past month or
SOL