Evening star., 1923-03-05
MARKET GOING Up
TOOFAST, IS CLAIM
Expert Believes Stocks Are
Near Danger Zone as Prices
Continue to Soar.
BY STUART p. WEST.


Special Dispatch to The Star.
NEW YORK, March 5.-The pre-
vailing Wall street opinion today
was that the market had entered the
danger stage, yet that there were no
immediate signs of a serious setback.
Conservative people would have pre-
ferred to see the demonstration in
the rails, which began Saturday, con-
tinue and the highly speculative in
dustrials take back seat, but this
did not happen.
There was further buying in the
railway group for the first half hour
or SO. in the course of which New
York Central crossed par for the first
time this year. Northern Pacific sold
we'll above 81 and Great Northern
preferred touched 80. But as soon as
the pools got going again in indus
trial 'specialties interest quickly shift
ed. back to this class of stocks.
Many sharp Advances.
A violent jump in United Railway
Investment preferred fitted in with
1ntimationS which have been heard
for some time that a plan was being
worked out under which the arrears
in back dividends would be provided
for. The common stock crossed 20,
at which price IL was up over points
from a week ago and nearly 9 points
from the low OF the year.
Big earnings and a favorable out
look for their continuing were the
motive back of the upbiddinE of the
motor supply stocks. The shipping
group were active and strong. ATTAIN
tic Gulf was bought again on the re-
Sised estimates regarding its annual
report
White Motor and Mack Trucks rose
sharply. the former on the ground
that present earnings are running at
the rate Of Sl6 share. and would
easily permit an increased dividend.
Despite the further advance in the
copper metal the rise in the copper
stocks was checked. The street no
longer felt so much confidence about
an immediate increase in the henne-
colt dividend and this was one reason
for the heavy profit-taking in this
stock and in other members of the
group.
Review and Outlook.
There was very little change in the
various aspects of the financial sit
uation as the new week began today.
Some violent advances occurred again
on the stock exchange of the sort
that were unpleasantly reminiscent
of October. 1919.
Undoubte edly these performances were
repugnant to conservative sentiment
and stimulated profit taking and dis
trbutive sales in other parts of the list.
But this selling was not heavy enough to
discourage the activities of speculative
cliques, which went about marking up
prices in the industrial section with
the utmost holiness.
The atmosphere was filed with rumorS
OF deals between this and that manu-
featuring company, and there was a
great deal of talk about more stock
dividends and larger ash distributions.
Experience has always shown that nine
tenths of these stories in the end are
not borne out.
sub operations as went on today
in the motor supply stocks. in the can
shares and in one or two other of
the speculative favorites were of the
eXtravagant sort which often char
acterize the later stages of a pro-
longed upward swing.
Setting Dangerous Pace.
Over the week end trade advices
nearly of the highly optimistic
helped along the upward movement.
Even those in close touch with Wall
street affairs have not been prepa red
for so rapid an expansion in busi-
ness transactions and so extensive a
rise in commodity prices as are now
being disclosed by the completed
summaries for the month of February
The speculative element will at
tempt to defend the violence of the
Wall street rise on this ground. But
granting that the extent of the trade
Improvement had not been properly
Rauged even by the most sanguine at
the beginning of the year, the market
as 1t was going last week and again
today was setting pretty dangerous
pace.
The great activity of the specula-
tive stock market overshadowed
everything else in the days happen
ings. The investment market was
very little changed one way or the
other.
1t is still waiting to see whether
me constantly increasing trade de-
mands along with the growing credit
necessities in connection with the
Wall street rise will not cause a fur-
ther hardening of money rates. If
this occurs it will be a test for the
present level of bond values
All of the motor accessory COM
Ianies continue to report excellent
business. Stewart Warner. Strom-
berg and Bosch Magnetic stocks were
the leaders Of this group. In the
case of the first named the anticipa-
ION that substantial extra dividend
either in stock or cash will be de-
cared at the next meeting, to be held
shortly.
StromberG is also advancing on
excellent earnings Bosch Magnetic is
showing improved EARNINGS each
week and production is far behind
demand. There is chance that
Bosch will be put back on the diyi-
dend list later in the year.
Latest figures regarding the de-
mand for Chandler cars show that
the company is far behind in produce
zion. An official today said that close
to 1000 cars were sold on FIVE DAYS
of last week alone, whereas the COM
pany will not be able to turn out
more than $500 cars in a month The
chandler directors will meet for divi-
dend action on Friday when the regu-
ular $1.50 quarterly will he declared
Much Shifting by Trades.
The stock market of the afternoon
was a succession Of feverish shifts
from one set Of stocks to another as
the nimble trading element endeavor-
ed to get out of things that were not
moving into things that were. These
operations brought about irregular rity
early leaders came down a point or
more whole new leaders were shoot
ing up.
American and California Petroleum
we're rushed up again, the former to a
new high. The oils became stronger
under the lead of Cosden. which on
large tranactions again crossed the
so mark. The annual report of Owens
Bottle. which showed earnings Of over
81 share, was worth a point to the
stock in the early market. But most
of this advance was relinquished
Maxwell Motors did the best of any
trading. The steels showed no dis
position to continue their advance,
and along with most of the coppers
felt the effect of heavy realizing.
Copyright, 1921