Evening star., 1923-05-09
EQUIPMENTS LEAD
IN MARKET RISE
Many Sharp Gains Scored in
Days Trading-Bears
Hasten to Cover.
by STUART p. WEST.

SPECIAL DiSpAtCH 10 iHt
NEW YORK, May 9.-Short sellers
showed much more anxiety to cover
their contracts in the stock market
today than they had the previous day
When prices turned upward, the
equipment group took the lead. close
ly followed by the motor accessor!
stocks and the sugars.
The shorts in Baldwin Locomotive
were slow to abandon their position
but they were finally started on the
run by the remarkable demonstra
tion in American Locomotive. This
stock was up a one time eight points
from the Monday closing.
The facts regarding American Lo'
connective. frequently set forth, are
that during the first quarter over 81
was earned for the common stock
foreShadoWing earnings for the year
betwe cen $40 and $50. Regardless of
the dividend policy. which in cases
like this is not the determining factor
the enormous prospective ADDITION &c
surplus at the end OF 1928 means a
very much higher asset value fol
American Locomotive shares.
Other equipment stocks. like Pull
man. American Car and Foundry and
Lima Locomotive. also ran up rapidly
Sugar stock strong.
According to all the evidence the
short interest in the sugar was eN-
repiionally heavy. IL had been fooled
by the outcry about high prices and
the talk Of "A buyers strike. for
getting that the greater part OF the
new Cuban crop had already beer
sold and that even 1T cents pound
for raw sugar. the Cuban producers
would he able to show substantlaI
profit on the unSold portion of their
SrindingS With the help of the
u
stocks came back easily To > points
from their recent lows.
What happened after a half hour
or 50 of uncertainty this morning
WAS general rush to buy III
short contracts. which carried prices
forward >, and all the way up to
10 points from the bottom figures "i
the Monday break.
In the other markets outside tho
stock exchange the changes were
Eretty much confused. Sterling drop
l.cd below s4.61 for the first time this
year and francs were easier. Cotton
which has been moving in pretty
lose sympathy with stocks. felt the
same relief that WAS shown in tho
stock market.
Wide Interest in Rubber.
The question naturally has arisen
as to what effect the current 10"
prices for crude rubber will have
tire companies. and particularly sucf
leaders in the industry United
states Rubber and Kelly Springfield
Al - cents < pound. crude rubber
today was selling fully 10 cents Z
pound under the top quotation of the
year This decline in the rubber
market has not been SO surprising, ir
view of the recent weakness in the
prices of other commodities.
As far as the rubber companies are
concerned, there seems to be no ap-
prehcnston over their operating re-
suits for 1923.
Mathieson Alkali gave d good ac-
count of itself today when the sell
ing pressure of the past week or sc
had been partially lifted. The stock
jumped couple OF points between
sales to so and was moderately ac-
tive. Lately it had dropped to around
&c. Mathieson's earnings arc run
ming satisfactorily at approXimatel
$40 a year. Dividends on the com
mon are not looked for in 1928, but
The accrualS on the preferred un-
doubtedly will be wiped out.