Evening star., 1923-10-25
P|v0F':A! ! STOCKS !.
y. =, ".s.r'5 s,ar Ne4' ., 75'tf a.r-
AGAIN SELE.::OFF
Rail. Copper, Rubber and To-
hacco Shares. Take 9th
efS. Downward. .',.t
BY STUART P., WEST.


Special Dispatch TO The star.
NEW YORK, October, 25.--In the
stock market today numerous weak
spots were again uncovered and had
a. depressing or retarding effect upon
the general list. - - 81. rr-"ss
Shares of railroads which have not
been making a good showing even
with the record breaking freight
traffic OF the{ last few months, hsve
been slow to break away from the
movement in the rest of the rails and:
have their suitable downward ad-,
justment. But they began to display
special weakness "Wednesday and
broke badlysin the trading today.
ST., Paul Stocks Break. -.
st. Paul stocks We're extremely
weak and they We're not helped by
the statement attributed to the presi-
dent of the road that September earn
ings had been the best of any month
in two years and that there was every
reason to expect that the year would
end with fixed charges fully covered.
Private estimates based upon traffic
reports and adjusted to seasonal va
riations have not figured st. Paul as
earning more than 90 per cent of it's
interest requirements. Along with
this there is the ominous record of
six years of deficits even if partially
Offset by federal compensation.
The situation has been showing in
the very low selling prices of the st.
Paul bonds. The per cents matur-
ing in less than two years were quot
ed at 50 today, which is an enormous
discount to contemplate. II does not
necessarily mean a fear of default,
but it does reflect the opinion that
when IL comes to refnancing q great
EaGrlnca - II
Rhape of higher interest rates.
Missouri Pacific Also Weak.
The story of Missouri Pacific's
weakness is likewise told in the bond
market. Missouri Pacific bonds have
been. sagging for some time. Mis-
souri, Pacific stocks, like the St
Pauls, have been slow to show the
effect, but within the last two days
they have succumbed. Missouri Pa
clf1c is another case where fixed
charges are not being earned. The
Rock Island stocks were also espe-
ctally weak today, taking note of the
fact that only about l per cent is
being earned on the Z per cent pre-
ferred.
EXplana ton for the recent strength
In Tobacco Products A came out in
the report that the American Tobac-
co Company would take over the
manufacturing properties of Tobacco
Products. paying around $4,000, 900
and guaranteeing an additional So
100000 annually. The $4,000, 900
would retire both the per cent notes
and the per cent preferred stock.
This will leave nothing ahead of the
them the entire earning power of
United Cigar plus the $2.5OO. 900
american Tobacco guarantee. The
Iobacco Products stocks had evident
ly discounted the good news for
they sold off quite sharply.
uyaaI
The financial community in its pres
ent mood emphasizes all that is un-
favorable. Consequently il made the
most of the disappointing conditions
in the copper trade and of the drop
in raw sugar from it's recent high of
8 cents pound to II cents. It took
no heed of Judge Ciary's speech be-
fore the American Iron and Steel In
stitute, i'll which he. expressed confi-
dence in the future. or OF the state
ment by the vice president of the
bethlehem Steel that there was a
noticeable improvement in new busi-
ness"
At time; when, unusually large
yields are offered on stocks with
q fairly we'll assured earning power
back of them IL is not had 70 un-
derstand why there should be little
demand for shares Of railroads which
have not been earning their fixed
charges.
In the case of. the COPPER shares
and the rubber and tire shares. the
reasons were likewise of q special
character. Few Of the North Amer
ican copper producers can make
much money with the%.rnetaf' going
begging at 1919 cents pound. Ex-
actly how hard the various rubber
companies have been hit by, the severe
price cutting and the break in crude
rubber it is difficult to determine.
The exact fzetsi WIN mot be. l,iown
until it comes to making up tnven-
tory ACCOUNTS at, the year end. :
- Fiscal Report Anticipated
Punta Allegro Sugar made scarcely
any response today to publication OF
income figures for the fiscal year end
ed May 81. showing net profits after
interest, depreciation, reserves and
other charges equal to $1053 on each
share Of, $50 par value This, COM
pared with only IL cents a share. in
the previous fiscal year. Recently
Punta Allegro directors put the stock
on IS annual dividend basis. which
had been fully discounted by the SELL
ing price of the stock = -
Doubt that the Goodyear Tire and
Rubber Company would find 1t expe-
dient to retire more of the prior pref
erence stock at this time has been
Qispelled by decision of the directors
to retire an additional $1,000. 900. This
leaves S15.0o0,O00 outstanding.
Market Quiets Down.
Weekly statistics on crude oil out
put gave no sign that low. .urices
were discouraging production. The
daily average was considerably above
that of the previous week and well
up to the high record in the latter
part of August. Curtailment In the
older fields swas'so far offset by ex-
panston. in newer territory that the
OIL shares We're Aot much, affected.
The stock market Quieted down in
the late ;afteynoen. and tevelone1 niore. r..
s1rmness. although the, list at no time
nad been weak, save in spots.