Evening star., 1923-10-20
COVERING IN RAIL SHARES.
Short Interest Shows Uneasiness in
Saturday Trading.
BY STUART II. WEST.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, October 20.-Follow-
ing Fridays inconclusive fluctuations,
the stock market turned definitely
strong In the last hour today. There
was not much increase in activity,
but the trading did show rather more
animation as prices moved forward.
The short interest showed more un-
easineSS on account of the resumption
OF operations for the rise in num-
ber of special issues, which is always
significant of a change in sentiment.
The tobacco groups were leaders, as
they have been all week. New highs
were made by Reynolds B crossing
72, and Tobacco Products A above
IS. The latter, it is felt, has been
selling out of line as per cent
dividend payer, back of which are
now placed practically the entire re-
sources of the United Cigar Stores in
addition to its share in the CROWN &
and profitable manufacturing business
of the Tobacco Products Company
itself.
Alcohol n FavOrite.
United States Industrial Alcohol was
another favorite, but there was moth
ing to be added TO the statement that
alcohol prices are the highest in three
years, that there is a marked scarcity
of the product and that a still further
advance in quotations is looked for.
There was active short covering in
the rails, particularly in Northern
Pacific, Chicago and Northwestern
special pressure. Union Pacific ran
up a point and half and so did
has proved wrong. In 1921 Rubber
stocks came back before the end,
United States Rubber common gain
ing more than point Rubber pre-
ferred at the start got down below Sc.
1t was just year ago that the stock
broke from above par to 81, and the
street was sure that this meant re-
duction of the dividend The street
preferred sold as low as "A and yet
the dividend was not disturbed. Good
rich preferred made new low to the
accompaniment OF the announcement
prices to meet the new schedule of
its competitors.
Mack Truck Earnings.
The third quarter income statement
of Mack Trucks is expected TO be pub
lished next week. Only an estimate
of what the earnings were for that
period is available and that is APP
proximately S5 per share on the COM
mon after charges and preferred DIV
idend requirements. In the trst quar-
ter Mack earned S4.34 on the common
and in the second three months SrS9,
It is too early to estimate the net FOR
the last quarter. 1t is probable that
some falling off, as usually occurs at
this time of year, will be shown. For
the full twelve months, however,
Mack is likely to report something IN
excess of $50 a share on the common,
as against the current SO annual dlVl-
dend rate.
American Sumatra Higher.
American Sumatra Tobacco was
slightly higher today, following the
publication OF the income statement
for the fiscal year ended July -. rms
showed a net loss of $5OS,6oO' i@IfSr III ,
terest and other charges, as compared
with a deficit of S3,053, ,522 for the pre-
vtous twelve months. Although the
company went through another iScal
year with a net loss, improvement IN
operations was quite evident me
street has taken the view that Amerl-
can Summarizes business since Iast July
has gone ahead steadily, along with
the prosperity in other concerns IN
the same line of trade, and this con-
sideration is having more TO 40 Win
the movement of the stock than last
years figures.
German News Greater Factor.
News from Germany was more of
a factor in the markets today than
at any time this week. 1t was hard
to find any relation between this news
and the mixed price movement on the
stock exchange. But French govern
ment bonds went lower and French
francs were quite weak, together
with Belgian currency. Sterling touch
ed the low of the year, and the German
mark made a new low record. 12,5Oo,-
100000 to the dollar.
Plainly enough these were mani
festations of uneasiness over the
latest move of the Berlin government
to refuse reparations altogether and
let the Ruhr industrialists do as they
please about an independent settle
ment with France. This throws the
whole indemnity question up into the
air more than ever. Nine months
experience has shown the futility of
trying to collect at the point of the
bayonet, and financial sentiment, eX-
pressing itself in the low selling price
of the franc, continues to be skeptical
of the outcome.