Evening star., 1923-10-08
INTEREST CENTERS
in RAILROAD ISSUES
Many Stocks Go Higher.
Bears Pound Studebaker'
| and American Woolen.
BY STUART r. WEST.

Special Dispatch to The Star.
NEW YORK, October S.-Those who
have been predicting that the railway
shares would break away from the
industrials and have an upward move
ment Of their own began to see thelr
prophecies working out toward the
close of last week. Today the demon
stration in the rails was more strlk'
ing still. particularly as 1t was ae-
companied by pronounced heavness
and at times a semblance OF Weaknes;
in important parts OF the industria'
section.
Low priced rails had been favored
in last weeks buying, put toaaS ~, .ne 5
higher-priced dividend payers came
in for their share of attention.
Reading stocks Pushed Up.
With only a week to go before the
expected approval by Reading share.
holders of the segregation plan and
the transfer to the stock exchange OF
Reading Rights and the new Readlns
coal shares, the present Reauins stoes
was bid up sharply to new hign
for the year. The incentive was thai
with the rights off the present selling
price and with earnings from the
railway sufficient to cover dividends
more than twice over, Reading STOCK
at the readjuSted selling price "ouio
look attractive.
Other anthracite stocks went along
Lehigh Valley. in which there was
apparently a long outstanding shor,
interest based upon the series OF
Of the year, had a brisk upward turn
and there was a good deal of specula-
tive buying in the Eries.
Much Short Covering.
There was evidently lot of shor,
covering going on in stocks of roads
which have not been showing up well
in earnings. Among these were the
ST. Paul. Missouri Pacific preferred
and Rock Island common.
Even during the period when the
rails were strongest the industriais
We're yielding ground. American
Wooden was one of the weakest, anC
the bears kept on drl ling at Stude-
baker whenever they got the chance
The steel group was dull. rejecting
the uncertainty of the trade position
and the same was true of the coppers
Cast Iron Pipe made new high earl!
in the session, but fell back later. The
erratic Dawson Chemical had one OF
its characteristic downward turns.
Covering I'm Marine.
On the other hand there was
short covering in Mercantile Marine
preferred, following last weeks i'm
prcvement in the 8 per cent bonos
Unusually large trading at higher
prices in Fifth Avenue Bus brough,
under discussion again the rumor oil
a combination with the Yellow TAX
Cab Company.
Both French and Belgian exchanges
were strong again today. But the
large question is, that assuming Ger
many is about to recommence snip
ments OF goods on indemnity account
how long can this reasonably be ex.
pected to continue? The producers OF
these goods must look for payment
from Berlin and how can the German
government pay for very much with
it's virtually worthless paper currency
and the very limited stock OF gold 81
it's disposal?
Rather Poor Coffee Reports.
The reports for the three MONTH
ended September so of the leadine
porphyry companies-Utah, Nevada
Chino and Ray--are expected to b'
rather poor Earnings will probabl,
be shown to have been less than IL
the second quarter. especially IN tn
case of Chino and perhaps Ray. Thes'
latter have been unable to reduc'
their costs sufficiently because o
comparatively low output. Utah ant
Nevada no doubt have been doint
proportionately better than the 9th
ers.
The projected merger of three o.
the southwestern copper companies
Inspiration, Ray and Chino-is un
derstood to be much nearer at han(
than generally realized. 1t was re
ported today that price at wnicf
the three companies would enter the
merger has been virtually fixed.