Evening star., 1923-01-02
RISING TENDENCY
IN 1928 MARKET
'...
Opening Session Sees Sharp
UpsWing, Followed Later by
H. Realizing. Sales.
BIZ STUART p. WEST.


Special Dispatch The Star.
NEW YORK, January 2.-The first
business day Of 1928 was character
ICED by a rising tendency in stocks.
by steadiness in the general bond list,
by renewal of the advance in the
foreign exchanges, by somewhat
easier rates for time money and by
check to the upward movement in
the commodity markets.
In so far as there were any precise
outside movements at work they
were, first, the optimistic note struck
by the annual business and financial
forecasts, and, second, the expectation
that the Paris conference of premiers
will do what the London gathering of
a month ago failed to accomplish, and
that is, reach compromise upon
German reparations.
Leaders at New Highs.
Many of the leaders of the stock
market made new high prices for the
current upward movement, among
them Baldwin Locomotive, Studebaker
and some of the oil shares. There
was little new to be said in connec-
tion with these operations They
simply testify to the confidence on the
part of speculative cliques which see
before them an indefinite period of
easy money and of favorable busi-
ness conditions in majority of lines.
The oil trade still feels sure that
the various advances of the past week
are merely a prelude to large and
more general upward readjustment.
AS Is well known, the equipment COM
panies are facing probably the most
active business during the six
months in their entire history, while
the sentiment as well as practical
influence of annual automobile show
is the chief incentive back of the
buying in the motor stocks.
Later Prices Irregular.
AS the day went on the market be-
came more irregular. Realizing sales
slowed up the rise in stocks which
had been prominent at the start, but
new buying appeared in others. The
public utility group were conspicu-
ously strong on the broad ground tnat
1928 is expected to be an even petter
year than 1922.
Steel stocks were rather heavy be-
cause of the suspicion that the large
volume of current orders on the books
does not. for most of them, imply
correspondingly large profits.
There were no indications in the
security markets of the presence of
the traditional January reinvestment
demand. In contrast to the begin
ming of other years, with their active
buying and rising prices, the bond
list was dull.
There was no particular signiff-
canoe to the lowering of offers of
time money from to Az per cent
This merely was anticipative of the
resumption of funds Withdrawn for
January settlements. 1t did not
point to fundamental change in the
money situation nor to resumption
of the main downward movement in
interest rates which was halted in
the early autumn under the influence
of increasing trade demands.
Buying In u. =. Realty.
Buying of United States Realty to-
day was not inspired by any hope of
an early increase in the dividend, but
rather by the consideration that the
count of the strong financial position
of the company a larger distribution
ultimately is certain. During the
fiscal year ending April 80, 1922,
Realty had a surplus equal to full
dividends on the new per cent pre-
ferred and l per cent on the common.
which is now paying 6.
The fact that officials OF Lorilliard
Company. Liggett and Myers and
American Snuff were not stampeded
late in 1922 into declaring stock divi-
dends to take up their large sur
pIuses has led persons familiar with
the affairs of these companies to
think that distributions in stock are
now improbable. 1t is expected during
the current year all three will split
up their stocks in some way and may
pay dividends on the new shares large
enough to mean more money for pres
ent holders. All three now pay $12 an
nually, while earnings are approxi-
nately $40 a share.
Chemical stock Strong.
Although Dawson Chemical stock
has been Influenced largely by the
speculative possibilities of the silica
jel development it's recent recovery
has been due to 2Some extent to the
- nsl l.kA A,,AT
ness. Davison's capacity for the pro-
duction of acid phosphate is $4,000
tons a month. Last summer little
more than 10000 tons were delivered
for thirty days while late in 1922 the
average delivery had expanded to
more than 10000 tons monthly.
This was due to the disappearance
decomposition in Baltimore and to
healthier market for acid phosphate.
Activity slackened in the smaller
number of shares of Pond Creek Coal
available for trading. 1t is under
stood that the stockholders of Pond
Creek will receive around $45 share
for their holdings, when the titles
have been verified and investments
1iquidated. The money for the prop
erty is held in Boston banks pending
completion of negotiations involved
in the purchase by Henry Ford.
Copper Shares Firm. -..-
Copper shares were firm but did
not make the response that might
have been anticipated to the word
that the market for the metal had
started the year firmly fixed on
14% level, as compared with the IA
which was the prevailing figure all
through the latter half of 1922. Ac-
tive short coverings came into the
independent steel stocks during the
afternoon and some of the rails did
better.
The equipments and motors in the
last hour felt the effect Of specula-
tive realizing.