Evening star., 1923-05-11
RAILROAD SHARES
/! DISPLAY ACTIVITY
Divide Interest With Indus
trials for First Time in
rs Many Weeks.
BY STUART p. WEST.
peciaI Dispatch to The Star.

BY STUART p. WEST.
Special Dispatch to The Star.
NEW YORK. May 11.-For the first
time in a long while railway stocks
divided interest today with the in
Gustrials on the stock exchange.
The movement in the rails was
really started by Thursdays demon
stration in Pittsburgh and West Nir-
ginia. Realizing sales came into this
stock today on the denial of the re-
port that the road was to be taken
over by Chesaeake and Ohio on a
81 dividend guarantee. But traders
who had made money on the rise
across so were quick to- jump into
pere Marquette, Southern Railway.
ST Louis Southwestern and Wabash
preferred when signs of animation
began to appear in this class of
stocks.
High-Priced Rails More Active.
Higher priced dividend-payinEr rails
were also more active and stronger
today than in some time. Canadian
Pacific ran up sharply. Union Pacihc
was helped by the declaration of the
regular dividend, which Wall street.
was foolish enough TO believe in danger.
An early w;nd-up of the court proceed
ingS preliminary to the announce
ment of the Reading segregation plan
is expected and the stock was bought
for this reason.
Among the industrialS the move
ment was very much mixed. Weak
ness continued in Bethlehem Steel.
not because of the talk about new
financing, which has been denied. hut
hn Sfa Inns
next month or so is expected 10 ran
off, and so make it doubtful If Beth
lehem can cover Its common share
dividend. American Agricultural
Chemical stocks broke violently, and
so did the American Cotton OILS. Ike
adjustment of capital account Is ike
ly in the case of American Cotton on
owing to the very poor outlook tor
this sort of business
Market Turns Irregular.
AS the day went on in the stock
market the opposing specui;ltlVe
bodies continued to show their hand
with varying success. At one time
In the early afternoon the oil STOCKS
were bid up and the can shares We're
very strong. But Immediately alter
ward selling broke out again In the
steels and stocks of a mercurtal sort
such as Studebaker and Baldwin,
were driven down rather sharply
Flat rejection of the rumor or q
merger between the kresse ana
Woolworth companies caused Nlo-
lent break in the latter stock, which
had risen with equal violence carrier
in the day Continental Can is earn
ing over three times It's present dlVl-
dend of So. SO that reports OF an IN
crease later on are we'll founded. The
stock sold today within less than
three points of the years high. lr-
respective of any plans which may
be on foot for adjusting the capital
account of American Can, SO that
shareholders will get some advantage
from accumulative equities. the stock
is being bought partly because OF
very favorable earnings and partly
out of consideration for the very
large increase in asset value which
has occurred within the last year, and
which is still in progress.
Bethlehem Mt New Low.
Bethlehem Steel made a new low un-
der So. and the Little spurt in the
oil stocks subsided in the last hour of
trading.
Shares of rubber and tire companies
were rather soft because the recent
heavy decline in the price of crude
rubber is expected to lead to increas-
ed production by the smaller con-
panies and consequently increase COM
petition for the larger.
The outstanding strength in Pere
Marquette today was based largely
upon talk Of a SO or 81 dividend by
June, and also favorable earnings
estimates. 1t has been calculated that
If the last nine months of operation
of this railroad are no better than the
corresponding period in 1922. and with
the first three months of 1923 added.
Pere Marquette would show approXi-
mately IS a share. The net income
available for dividends. however, is
expected to be nearer $40 for the full
twelve months.
In
in Texas Gulf Sulphur has been in
duced by the report that the dividend
rate is to be raised from IS to Sc this
year.
The financial district was in re-
ceipt of rumors today that the same
sort of plan as that just put through
by the American Locomotive Com
pany is likely in American Car and
Foundry. This would be the doubling
of the common capital and the in
creasing of the dividend.
Todny's Financial Review.
The market for the steel shares
was plainly showing a keener ap
probation of what the postponement
of big construction enterprises will
mean for the demand for steel in the
next few months.
The weakness in the chemical and
cotton oil shares was a reflection of
a special business condition long
known to be bad. 1t had no sfgnifi-
canoe whatever for the trade situa-
tion as Il whole.
The market was equally appreci-
ative of stocks representing indus
tries that are f1ourishing like the cam
ming trade.
1t was also expressing its Judgment
that the measures now being taken
to overcome the excessive production
of crude oil WILL in the end, succeed,
although they have not begun to
show in the statistics so far.
Market Views Changed.
The commodity markets were again
considerably unsettled today. At one
time today cotton was selling nearly
s cents under it's high Of the year,
while wheat options were equally
weak. The cotton market has had to
adjust itself to the slump in the de-
mand for cotton goods, which began
to be noticed month ago. But both
the cotton trade and the grain trade
have had to revise their views re-
garding the seasons supply and its
relation to probable world require
ments. In both instances the crop
outlook Is better than 1t was, while
foreign buying was decreased.