Evening star., 1923-03-28
WASHINGTON NEWS
STARTS STOCK RISE
Sharp Advance Covers Wide
Range as Market Throws
Off Recent Heaviness.
By STUART p. WEST.

By STUART p. WEST.
Special Dispatch TO The Star
NEW YORK, March 2S.-On the
favorable news from Washington
operations for the rise were resumed
on the stock exchange today. At the
same time professionals on the short
side, who had not taken in their con-
tracts Tuesday, We're covering them.
The advance, however, was extreme
y Irregular.
New York Central was actively
SOLD when the directors declared only
the regular dividend at the rate Of
per cent. The disappointment felt
on this score. coming on top Of the
comparatively poor showing in many
or the February traffic statements,
made itself felt in this class of stocks,
pelng le1t pretty much alone.
Pools Again Very Active.
Pool activities were obvious again
IN the equipment shares, in Stude-
baker among the motors and in a va
ricty of specia!ties of the type of
Mack Trucks, Associated Dry Goods,
owens Bottle. Reynolds Spring, Brown
Shoe and Famous Players Brown
Shoe was bought in expectation that
the greatly improved earnings Of the
company will bring about a dividend
distribution.
The street was pleased today with
Steel in the advance both Tuesday and
today. Its leadership from a specula- =
tive standpoint was calculated to in
spire greater confidence in the gen
eral market movement. The pools in
Marland OIL and Phillips Petroleum
were busy again, maintaining that
earnings. present and prospective
warranted higher dividends and con-
sequently justified bulliSh position
on the stocks.
Among. the equipments Baldwin
Locomotive. Lima and Pullman were
all conspicuous, so was American
Locomotive.
Review md Outlook.
The essential thing was that the
decline of the last fortnight had cor
Tected the main weaknesses in the
market position. 1t had carried prices
off five and ten points from their
highs in the early part of the month.
1t had undone. over a large part of
the list. fully half of the rise since
February l. Consequently the mar
to respond to good news from any
quarter and il was perfectly ready
to believe in the Washington dis
patches which represented that bust
ness and credit conditions had not
reached a stage yet where an advance
III federal reserve rate was regarded
as necessary.
A striking instance Of how Wall
street has been putting its faith il
rumors as If they were accomplished
facts, was afforded by the action of
hhe New York Central directors at
their delayed meeting in declaring
only the regular quarterly dividend at
the rate of D per cent. A month ago
when speculative enthusiasm was at
tts height and nearly every market
letter writer was culog!zing the pros
poets of the railway shares, dividend
Increase on New York Central stock
was taken for granted.
Central Dividend Disappointing.
The only question was whether the
Increase would be from TO or from
TO per cent. Naturally the diSap-
poiutment at today's decision was very
keen. especially as 1t came along with
the February traffic statements show
Ing Z heavy slump in railway net in
before.
Independent strength developed IL
Cerro de PaSco on d renewal of the
report that the company would go
on the dividend list at the fCrthcom-
ing directors meeting. No official
confirmation Of this rumor was at
hand. but the feeling has been all
along. in view Of Cerro de Pasco's
profitable operations in South Amer
scan copper fields, that d dividend at
the rate Of 81 annually would be paid
by June. if not earlier. The last
quarterly payment at the rate OF 81
u year was paid III March, 1921.
Gains Well Maintained.
The general stock market held the
ground gained early in the day quite
veil through the later dealings.
Trading the last tao hours was
somewhat more quiet with realizing
sales causing some small Reaction
here and there. But the main move
Inents Of the afternoon were upward.
In view Of the general assumption
that no Immediate increase in fed
eral reserve rates is likely, less at
tention was paid to the money market
-he call loan renewal remaining at
%. per cent, but many Of the day S
loans were made 1T 512, down to .
per cent.
There vas little feature il The
foreign exchange market. For the
;rst time in weeks Gerlaan marks
GroI6e the level at which they had
seemed to have been pegecd-AS
measured in thousandthS Of Il cent.
But the decline vas too slight t.
be Of any Significance.
Copyright 1921