Evening star., 1923-11-13
RAILROAD SHARES
LEADERS IN STOCKS
Heavy Realizing Sales Noted
in InduStriais-Southern
+ Pacific Wakes Up.
By STUART p. WEST.


Special Dispatch to The star.
NEW YORK, November 1S.-Rail-
way shares occupied the more promt-
nent place in trading in the stock
market today.
While realizing sales were going on
freely in the industrials, number OF
the low-priccd rails were taken. up.
Both In New Haven and the ST. Paul
issues there was a large short in
,erest which had had no time to
cover before the turn in the general
market two weeks ago. This short In
terest was a target for operators on
tho long side. The reason assigned Tor
the rise in New Haven was that the
road was able to show a. small sur.
pIus after charges In its report Tor
the third quarter. although tor the
fuI, year it is estimated that there
will be a deficit of s2.5oo.ooo
Those who believe that de0nite
turn has como in New Haven affairs
point out that had it not been for the
heavy losses in the shopmen's and
coal strike there would have been
substantial surplus; These i. strihs s
s4.500.0o0 during the first, two months
of the year.
shorts In st. Paul Cover.
The shorts in St Paul became un-
easy after the New Haven move got
under way, and both preferred and
common were bid up sharply. Other
low-priced rails were active. and there
was special strength in shares OF the
southwestern roads. like st. Louis and
Southwestern and st. Louis and San
Francisco. Missouri Pacific preferred
was also, although on the basis OF
the latest earnings the road Will tall
Ia nXe0
charges this year.
Southern Pacific. which has been
notorious laggard. did better: rms
company is covering its So dividend
nearly twice over.
Much Profit Taking.
In the industrial section there was
no general drift. Further profit
taking came into the regular leaders.
like United States Steel common
Baldwin Locomotives. American Can
and Studebaker. These stocks at
their lows of the day were off to 3
points from their recent highs. But
as they fell behind others were taken
in hand. The rise continued in the
shipping stocks. American Intcrna-
tional getting across 26 and Mercan-
Atlantic Gulf and American Ship and
Commerce, all participating mod
erately.
Submarine Boat was feature
among the SpeCldltleS- lt ulollNS
for the buying Of this stock is the
valuable properties in New York
harbor. The company Is deriving
good revenues from its docks and
warehouses.
LoriIlard stock Active.
In the wake of the approval by
Eiggett & Myers shareholders OF the
plan to split up that company's COM
mon and common 3 shares. L-orillard
today developed fresh strength and
sold several points above the final of
the previous day. 1t is possible that
Lorillard stock will be split up also
and ii has been this consideration
which has been constantly behind the
buying. Moreover, it has been ru
mored that the company might nc
Eotiate with the Schultz interests and
come to some terms such AS American
Tobacco reached with Tobacco Prod
ucts.
International Combustion and En-
giueering stock has been active at
higher prices, and the buying has
regarding the companys business. 1t
Is reported that the United States
Steel Corporation is spending several
millions for the installation of fuel
International Combustion. In addi-
tion, it is said that d contract has
been made by Henry Ford.
kcnsas City SOuthern's Earnings.
In the first nine months Kansas
City Southern earned net of ap-
proAimately $3.50 per share on its
stock, and, according to recent esti-
mates, the figure for the full twelve
months will be around Sc.
Aside from the highly satisfactory
earnings OF International Cement, as
indicated recently by the third quar-
ter report, it is understood that to-
ward the end of the week an i'm
Isortant announcement will be put
out Earnings for the nine months
euualcd S4.81 share.
Railway shares continued their
ership in the final trading. The
remarkable strength of the Eries
brought out Il variety of gossip about
a possible ombination with another
large system. The New York Central
was the one most frequently men
toned. But most people believe that
the Erie stocks were going up on their
earnings, which arc sufficient to cover
the per cent dividends on the two
classes of preferred stocks, with a
balance Of something over per cent
on the common.
The afternoon market also showed
again it's partiality for the shares of
chain store, mail order and depart
ment store concerns. which are get
ting the benefit of prosperity in the
tistributiNe trades and have been able
to pass on to the consumer increased
expense accounts.