Evening star., 1923-08-02
STOCKS DROP Off
/ IN FINAL TRADING
Attack Launched Against
Rails HaIts Advance in
Rest of List.
BY STUART II. WEST.

BY STUART r. WEST.
Special Dispatch TO The Star.
NEW YORK. August 2.-Prlces
opened higher on the stock exchange
went forward a bit further during
the first hour, then became irregular.
At the high of the day the market
was back over all the ground lost
since Monday and many stocks were
above where they left off that day
This was significant as indicating
that the position was by no means
as weak as it was made To appear
by recent bear operations.
American Locomotive. going through
II. established Il new high record
This was distinct achievement, con-
sidering general market conditions
but il was consistent with the recent
earnings statement showing that the
present dividend is being earned
nearly five times over. There is no
provision in the charter of the COM
pany for the retirement of the pre-
fprred stock. but the asset value OF
preferred and common may be Judsen
from the fact that the excess OIL
current assets over liabilities was
over S4+ 900 900 on June 80 and there
is nothing between this and the $50
10000 preferred share lSsue-no
bank loans and no bonds.
Railway shnres Weak.
Railway shares did not rally with
the alacrity displayed by the indus
trials. Many We're decidedly sluggish,
Weakness in Rock Island was readily
explained by the June traffic state
hnI
company had failed to cover fXed
charges. There was a deficit of s43.-
5I9. making total dehclt tCT tne
first six months of Sl.4@i.24l. The
Rock Island president was quoted re
Gently as saying that the road was
paying out more moneE in taxes thah
il was in dividends.
Other rails were affected by the
weakness in Rock Island. Missouri
Pacific prtfsrrsd, representing another
property that is not meeting its
charges. turned downward, after haN-
ing rallied nearl:' points from lis
recent low. So did ST. Paul preferred.
and share; of the northwestern COM
panics We're once more noticeabiy
heavy.
Drop I'm Late Trading.
Prices came down in the after
noon half point TO a point. but
there was no suggestion of any fresh
downward movement The wea k
spot; among the rails were Great
Northern preferred. which got down
10 its previous low; Northern Pacific.
the Rock Island issues and one or
two other low-priced stocks.
New low records for all time were
made III both French and Belgian
currencies today. Belgium has only
heen able to make both ends meet
because she was given the prefer
ence in cash reparations. Now that
these have been cut eff the Belgian gov.
ernment Will have to adopt the pre-
cariouS cxpedient of continued in
ternal loans. like France. How long
patriotic investors can be induced
to subscribe to new hotations is a
vital question.
In addition to declaring the regular
dividend on the preferred stock yes
terday. the Cosden directors are un-
derStOod to have insured the cOntinu-
ance OF the dividend on the common
stock for the remainder of 1928. III
view of the satisfactory earnings OF
the first half year and the fact that
the company has no bank loans, the
company feels justified, it is said. in
making certain the distribution Of the
Junior issues at least for the rest OF
1928.
Other Market Notes.
The report of the Virginia Chemical
Company for the fiscal year. ending
g May 81, out tomorrow, will not make
d
been led to believe. However, the
figures will reflect the differences
which this company encountered
Since the outset of the current fiscal
year business has picked up.
Mathesen Aikali ran up sharply
in anticipation of a favorable report
Of operations for the first six months
when earnings We're at the rate ot
about $40 q share. The statement
will he published tomorrow. II is
expected that the next income for the
remainder of 1928 will not vary much
from that of the first half year.
The comparative firmness of the
Pan americans recently has fitted in
with gossip of new pool support. Pan
American + at current prices is still
selling lower than most of the 81
issues. Moreover. the company has
maintained a strong financial position
and the low prices for crude oil do
not affect too seriously the income of
the company.
Investors Dodge Rails.
The action of the rails was the
more remarkable following the latest
figures on car loadings for the week
ending July 81, surprising the total
OF the last week in June, which, had
set a record. These figures
rallied to appeal to the stock market
because the large gross earnings are
not being translated into any strik-
ing increase in net because of wage
advances and unusual maintenance
requirements. The investors who or
dtnarily would be attracted by the
low selling prices of many dividend
paying rails in comparison with their
earnings are deferred by their feeling
that unless conditions improve for the
wheat farmer the agitations for real
reductions will become too great 10
resist.