Evening star., 1923-03-14
MANY NEW HIGHS
SCORED BY STOCKS
Flood of Rumors Helps Pools
Force Prices Upward in
j.. WhirlWind Fashion.
BY STUART p. WEST.

Special Dispatch to The Star.
NEW YORK, March IA. - Many
rev highs for the season were re.
corded on the stock exchange today
At no time so far has the street beer
as flooded with rumors and predic-
lions of bullish character
The day began with another whir
In some of Tuesdays favorites among
the specialties, in stocks like Macl
Trucks, Associated Dry Goods anc
rhe motors. But as the session wen,
On other stocks were brought to the
front. one after another in rapid sue
cesSion.
Shipping stocks Wake Up.
There was no logical reason in the
earnings position of the shipping com.
panies tor these stocks to be taken In
hand. Such improvement as had oc-
CURED in ocean freight business has
been very slight and rates are still
apnormally low. But there has beer
3. long outstanding short interest in the
mercantile marines and Atlantic Gulf
and IT was an easy matter in the
buoyant atmosphere OF the market
generally to force these short sellers
10 cover. Bidding up American Inter.
national across 80 was a particularly
bold operation in view of the antici.
patton that the annual report or
Thursday would make a poor show
ing.
Studebaker Goes Higher.
Talk of an extra dividend at the
April meeting as the result of the
present record breaking Shipme ents
was responsible for the strength in
Studebaker. Chandler Motors owed
its advance to the fact that some OF
the interests who are very optimistic
on Studebaker are the principal fac
tor in the Chandler situation. The
New York Air Brake report, showing
earnings of over 81 a share on the
new common stock. was better than
had been expected and Air Brake
shares responded promptly. Further
announcements of increase in tire
prices are looked for before the
close of tho week, and this was the
states Rubber and Kelly Springfield
The street was disappointed, how
ever, that the pan-American dividend
was left unchanged and that the New
1ork Central directors postponed ac-
fton on their dividend for another
month.
Nash Motors Accumulated.
Reports of higher earnings and talk
OF the possibility of favorable divi-
dend action were responsible for the
further buying today in Nash Motors
The statement for the fiscal year. end
income on the common after charges
and preferred dividends equivalent to
over. s23 a share AT present the
earnings are said to be running
The buying movement was resumed
today in Reynolds B.. carrying the
stock to its high point of the year
The likelihood Of a dividend increase
II
the continued strength in this stock
The current rate is SO annually, and
at least 81 a year is looked for The
1922 report showed Reynolds ratio of
current assets to current liabilities to
be Is to /.
Today's Financial Review.
Prices went higher again on the
particular development in the outside
situation or without any particular
change in the character Of the trad
ing.
The fact that a larger volume of
business was conducted might have
meant that the public was recovering
from the check given a week ago
and were taking more active part
IN the proceedings. 1t might also
have been interpreted as meaning
that the Wall Street pools were put
ting forth more strenuous efforts. and
OF the two this seemed a more likely
explanation.
A speculative movement in an ad-
vanced stage cares little or nothing
for news. 1t feeds on gossip and ru-
NOR and is not discouraged when
these do not come true. New York
Central stock, to be sure, went down
when 1t was found that predictions
of an immediate dividend increase
ever. has been full of talk about an
other extra dividend on Mexican Pc
troieum, which would be translated
into an extra dividend on Pan-Amer-
Germ when only the regular Pan
American dividends were announced
today.
Gossip Market Incentive.
Experience has taught that In every
speculative campaign three quarters
OF the Wall street gossip fails to ma
terialize. Yet while the campaign is
on this gossip supplies the main in
Centiye. Thus in the great majority
nT cases where individual stocks were
bid up today 1t was on talk of extra
dividends or dividend increases. Ia may
have been that the postponement for
& month for action of the New York
Central dividend put damper upon
speculative interest in the railway
group.
But in all events interest centered
in the industrials. in the motors, the
motor truck shares, the stocks of dry
goods and department store concerns,
the cans, and tires and variety of
the miscellaneous specialties.
AS has been true all along for q
month past, the stock market alb
sorbed most of the interest there was
in the financial happenings of the
day. Money rates were unchanged.
The foreign exchanges were dull and
exhibited the same stationary ten
dency that they have during the last
week or SO.
Trade Review bright.
The weekly Iron Trade reviews had
the same story to tell that they have
all year-an outturn well up to the
limit of capacity considering the
labor and railway handicaps, and con-
stantly rising prices. The price ad-
vance during the week took in pig
iron, semi finished steel and a num-
plates and sheets. So far rising sched
ules have not had tn effect of cur
failing demand but the Iron Age re-
fers to the possibility of orders fall
ing off in the western markets be-
cause prices of materials were con-
sidered too high.
Stocks Strong Up to Close.
In the stock market the advance
was we'll sustained throughout the
afternoon, although the later trading
was less active. For the first time in
II week copper stocks as a group did
better Gas shares were taken up in
a. moderate way again. On the con-
trary. a check upon the rise in raw
upward movement of the sugar
stocks.
Copyright, 1921