Evening star., 1923-10-06
MANY STOCKS WEAK.
Some New Lows Reached Outside
Railroad Group.
ny STUART p. WEST.

BY STUART p. WEST.
Special Dispatch to The Star.
NEW YORK, October 6.-Railway
shares occupied the center or the
stage in the two hours tradins on
the stock exchange today.
Following in the wake of Chesa-
peake and Ohio's four-point rise
other railways in which there is any
prospect of favorable dividend action
were taken up; wabash pIeiel.eu "a "a
was one of these, because, as mas
been pointed out more than once.
earnings are running at the rate OF
II per cent on the stocks, ana the
property is FIN excellent physical
condition, so THAT there Is no longer
for maintenance.
Late Rally I'm Rail shares.
The buying of the railway list be-
came more general in the last hour.
Shares of roads in the south were
noticeably in demand under the lead
of Atlantic Coast Line and Louisville
and Nashrille. Seaboard Air Line
of the adjustment bonds, which. 1t is
believed. are likely to receive some
thing at the next interest date. which
Is February 1.
Even the stocks of roads which are
not doing particularly we'll and in
lative incentive-New Haven. the st.
Pauls and the Missouri Pacifics--
Joined in the rise. Here the buying
appeared to represent to quite some
extent the covering OF short inter-
est. Reading made new high for the
recent movement just before the close
and New York Central crossed TO-.
Industrfals Go Lower.
Industrial stocks were completely
overshadowed by the buying move
ment in the rails. Such leaders as
Studebaker, Baldwin Locomotive and
United States Steel common went
loweF at the start, but later they were
almost neglected. Cast Iron Pipe COM
mon touched 40 and the preferred also
made a new high in anticipation Of
an extra 80 on the latter.
Liquidation continued in Jones Tea,
and a reduction from the present 4
per cent to per cent in the divi-
dend was talked OF .
Foreign Exchanges on.
The foreign exchanges went lower
again, French francs getting down
pretty close to the lowest of the
recent reaction. and Belgium francs
dropping below 5 cents, as against
the late high of 5.43. This was not
the sort Of action which would have
set much store by the latest changes
in the Berlin cabinet and the nego-
tiations between the main representa-
tive of the industrfalfsts and the
French commander in the Ruhr.
further decline in cotton options kept
attention fastened upon the situation
in the cotton goods trade, and how
the continued curtailment OF mill
operations which now seems PROB
able, would affect the price Of the
raw material.
Wall street Features.
The upward movement continued
In United States Cast-iron Pipe, both
common and preferred. making new
highs for the year. 1t has already
been stated than an extra 81 dividend
was likely to be declared on the
senior shares so as to bring up the
cent to which they are entitled.
Nothing as yet IS being discussed re-
garding the common share dividends
although, as the preferred is non
accumulative, there would be nothing
to stand in the way after the latter
was put upon a regular 81 basis. II
IS understood that besides the full
per cent on the preferred. Cast-iron
Pipe will show close to SIS a share
this year on the common.
Chesapeake and Ohio Gossip.
Chesapeake and Ohio was the most
prominent Of the railway stocks In
the market Of the day. 1t moved faI
enough ahead Of any of the other
rails to indicate that there was some
special reason for Its advance. The
buying was evidently induced by the
belief that an increase in dividends
from 81 to at least So or even more
will soon be made Chesapeake and
Ohio is one of the roads earning more
than per cent on it's property valua-
tions and, therefore. liable under the
recapture clause Of the transporta-
tion act. But even allowing for wlla,
IS due the government the road is
earning moro than 13 per cent for its
stock.