Evening star., 1923-08-23
WEAKNESS IN OILS
SLOWS UP TRADING
Erie Issues Outstanding Fea-
ture-Can Shares Active.
Gossip.
RY STUART j.. WEST.
Special Dispatch to The Star.

Special Dispatch TO The Star.
NEW YORK, August 23.-Further
weakness in the oil stocks had d sub
DUNG influence on the market today.
There was no news from the oil trade
itself to account for the selling. IT
simply reelected the lack of any basis
for hope that the oil situation will
mend in the near future. How long
the oil companies can continue opcr
ating at loss, without compelling
them to do new financing, or without
affecting their divinend policy. is a
question. The street is figuring that
outside of the Standard Oil group the
dividends are pretty precarious. On
the other hand. it is admitted that the
low prices at which these oil stocks
are now selling. while they may not
have entirely discounted unfavorable
dividend action. have gone long
ways toward doing so.
Eric Issues Are Feature.
Unusual activity at new high prices
Tor the Erie issues was an outstand-
ing incident of the day. This was evi-
IDENTIFY an Independent move. The
fact that other anthracite shares were
not drawn along made it clear that
the reason did not lie in the seeming
ly better outlook for a settlement of
the coal strike.
Some time ago r powerful banking
interest. hitherto not prominently
identified with Erie. was reported to
be taking ii hand in its affairs An
accumulation has been going on for
some time in Erie bonds. in the belief
that tn" road has permanently turned
the corner and that these bonds are Il
good business mans investment.
The buying of Erie stocks has ap-
parentIy been merely a speculation
hilN irrc f,f
the bonds II Is pointed out that at
the present rate Erie is earning the
full 4 per cent to which the first and
second preferred are entitled. with q
balance estimated at from = to 3
per cent on the common.
Can shares Among Leaders.
The market for the most part pre-
served firm tone in face of the
haavincSs in the oils. Can shares
were prominent again. Among the
specialties. Mack Trucks was a
leader. and Gulf States Steel and
julius kayser shares attracted atten-
ton The street regards the rise in
Fuif states as Il speculative move
r1snt based upon the relatively small
boating supply. kaySer stock was
bid UP on dividend talk.
II would not surprise the street If
General Motors directors before the
year end We're to increase the annual
dividend from S1.20 to 50. and it is the
opinion of we'll informed people that the
higher rate could he maintained indefi-
nitely. The company is in a position to
Increase its disbursement, and aside
from the profits which appear on the
surface il has the advantage of income
from accessory concerns in which il
holds 4 controlling interest. In the first
six months General Motors reported net
inome ava ailabie for the common stock
of Sl.S5 per share. Nearly four hundred
thousand cars We're sold in the first half
year.
Continental Cans Position.
Continental Can was actively bought
again today, chiefly because of it's
highly favorable earnings and it's
yield as a 81 dividend payer. The
return is around Sls per cent. Net in
come Is said to be between $40 and
sl2 per share. 4 new plant is being
probable that it will be entirely
financed out of earnings. An imror-
tant announcement regarding Cont
mental cans operations is looked for
sonr.
With the publication Of the full
text of the French reply note. the
financial community came to see more
clearly that Great Britain and France
were sttli as much apart in their at
titude toward German reparations as
they had been at any time.
This was an unfavora BILE influence
In today's markets. although il was
not the most important consideration
on the stock exchange. Here the
leading factor was the renewal of
weakness in the oil shares.
The reason Wall street does not
enthuse over this freight movement
is because there is no incentive on
the buying side so long as gross earn
legs increases are being absorbed By
increased charges for maintenance.
Save for the Erie stocks, the same
attitude OF Indifference toward the
railway list was shown in the mar
ket today.
Break in Famous Players.
\ violent break in Famous Players
stocks. preferred as well as common.
enlivened the proceedings of an 9TH
erwise unintereSting afternoon.
Famous Players has always been a
mystery to the street. That it's
stock should be selling so low while
paying such high dividends is. of
course. a suspicious circumstance. 1t
necessarily suggests that. despite the
large reported earning; of the COM
pany. these dividends are not secure.
The general list in the last hour
was dull. with conflicting tendencies.