Evening star., 1923-08-31
RAILROAD SHARES
/. MARKET LEADERS
Shorts on CoaI-Carrying
Stocks Rush to Cover.
!; Early Drop Checked.
BY STUART II. WEST.

;;NEW YORK, August 3l.-Railway
stocks stood out as the most promi- :
nent group in the market today 1t
was the rails which pulled the gen.
eral list up again after a half hour
or so of further reaction.
Traders who had gone short of the
anthracite coal stocks were made to
feel the truth of the old Wall street
maxim that it never pays to sell on
strike news" Delaware and Hudson
and Reading were in fact among the
leaders of the advance, shorts in these
stocks making haste to cover when
they found that real holders were not
alarmed at the prospect of walkout
Union Pacific. selling eX the quarter
1y dividend of 2l2 per cent, regained
a good part of il. and the same was
true of southern Pacific.
{. Il q. Stock Strong.
Stocks of the bituminous coal car
riers We're bought on the theory that
their business would be greatly in
creased by the anthracite strike. This
was an illustration of the change in
the temper of the market where now
everything favorable is considered
and the unfavorable slighted. Chesa-
peake and Ohio was the strongest of
was more activity in the Wheeling
and Lake Eries.
Short covering continued for a time
in St. Paul preferred on the theory
that during the last five months main
tainanCe charges might be so reduced
rs TO show the roads fixed charges
more than earned. Shares OF the
southern CarrierS-Southern Railway.
Iine--were bought in recognition
that as group their net revenues
have been making the best showing
of any.
They were not affected by the very
poor showing in the government cot
ton report. Latest estimates are that
Atlantic Coast Line is earning at the
rate of over SIG share. more than
twice dividend requirements.
i- wtIlys-OverIand Advances.
LESS interest was taken in the reg
u1ar industrial favoriteS, although
cline. Here and there special buying
was noted. The jump in WHY'S
Overland preferred to "A new high of
the year recalled the rumors that the
company is getting ready TO pay off
or otherwise finance back dividends.
The sharp rise in Colorado Fuel and
Iron was attributed to the activities
of a new pool. The excitement in
Dawson Chemical subsided
The exceptionally good business of
the manufacturers of electrical equip
Inent and the fact that Westinghouse
has been getting substantial share
of il has drawn increasing attention
TO this companvs stock. The COM
pany finished its fiscal ending March
81. 1928. with a surplus. after all
charges and dividends. of S6.2I S.5SI,
as compared with deficit in the pre-
vious year of S147,506. Dividends on
the common are at the rate OF - an :
nually, with indicated earnings of
about SIS
Famous Players Comment.
The opinion is quite generally held
that the short interest in Famous
Players which has been built up IN
the past few weeks has become un-
usually large. There are few who
have been optimistic lately on the
Famous Players situation, chiefly be-
cause OF the reports that the company
has been facing a series OF regal
fights. a sufficient number OF snare
holders have unloaded their stock to
cause a sharp decline. and in addi-
tfpn the shorts have been active. To-
day Famous Players appeared to be
under the influence of these latter
attempting to cover in some of their
commitments.
There is talk of a possible melon"
n the near future in connection with
Sputhern Pacific, according to those
who have observed the buying in this
stock. which is said to have been
coming recently from the Paclhc
coast The fruit traffic business OF
southern Pacific has increased 80 per
cent. Operation of its railroad lines
In 1923 is expected to yield around
$40 a share on the outstanding stock.
i Averages For August.
"A prominent Broadway wire house,
in it's market letter today, said: we
entered August recognizing its seas
orial bulliSh qualities. Sixteen strong
rnonths in twenty-six years was the
previous record. This year made 1t
seventeen 1t is the first month since
last March to show net gain in
SECURITY prices. From August 8. to
Yesterdays highs Qess than four
weeksG, there was a recovery of nine
average points, or As per cent. This
is pretty fast work.