Evening star., 1923-10-02
RAILROAD SHARES
GIVEN ATTENTION
New Highs Made by Southern
and B. & O.-0il Group
Shows More Strength.
BY STUART p. WEST.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, October 2.-The prin-
cipal feature in the market today was
the increasing degree of interest
taken in railroad shares Baltimore
and Ohio made a new high, crossing
574. 1t had taken nearly week for
the market to absorb the stock that
was bought N the 40s and lower SOS,
anticipating the dividend action. But
once this absorption was complete the
upward tendency was resumed. As a
) per cent dividend payer, earning
fully two and ii half times this
amount. Baltimore and Ohio is not
high, selling where it did today on an
S& per cent basis.
Much Switching Noted.
There were renewed indications of
switching into Baltimore and Ohio
from Northern Pacific and Great
Northern preferred, which are pay
ing no higher dividends and whose
earnings position and outlook does
not compare with that of the Balti-
more and Ohio.
Southern Hallway made a new high
for the present move, the more opti-
mistic predicting dividends this
month. There was more activity In
s'AN
Eries, these stocks working higher.
Less Pressure on Motors.
In the Industrial section efforts to
depreSS individual stocks like the
motors were not entirely abandoned,
but they were conducted more eau
tiously. Allied Chemical rallied later
in the day after having dipped below
90. Probabl the explanation for the
latest selling is that it was liquida-
jion of the leftover sort, that Is
liquidation which could not be easily
put through until the general list
mad steadied. The same reason ap-
parently applied to the sharp break
in National Enameling. Jones Tea, on
what was unCompleted selling, broke
again to its low of 32l2, but later
recovered. Burns Brothers A up six
points from last weeks low, proved
that there had been nothing in the
talk of dividend reduction but the
decline was the result Of forced sell
ing.
Oil Group Stronger.
The better tone was still maintained
In the oil group, but without the
same activity as late last week
White Oil sold at new low of 81 d
share following the announcement OF
the reorganization plan. This pro-
Vided that holders of the preSen,
stock subscribe to the bonds of a
new company, each thirty shares
calling for subscription of 500 OF
new bonds and receiving six shares
of new common stock. If not acted
upon favorably, it was pointed out
holders of bank loans and of the pres
ent first mortgage per cent bonds
would enforce their claims and wipe
out the common stock completely.
Southern Railway Again Leader.
Southern Railway common was the
leader again in the railway section
crossing 80 on large transactions
The buying was based upon intima-
tions of a dividend within the next
: two weeks. Southern Railway stands
above the average of class one roads
IN the matter of equipment. 1t has
not been forced 10 spend as much on
This account as the majority of other
roads, and hence has been able to
; save a larger proportion of its gross
gains to net. For the first eight
months net earnings ran about DO pei
cent ahead of the same period in 1917
Wabash Stocks More Active.
With more attention being paid tc
the rails, Wabash preferred 4 became
more active, some fairly large blocks
changing hands around so. Accord
ing to latest calculations, Wabash
should earn this year something like
il per cent on the y stock. This con-
stitutes a reasonable ground for hope
o. dividend.
Announcement that the Silica Jel
Corporation. in which Dawson Chem
ical has a 40 per cent interest, has
completed it's deal with the Mexican
Petroleum may come at any time.
1t is quite possible that this is the
motive behind the present advance In
Dawson stock. But. on the other
hand, the new upward movement
may quite as well be a pure specu-
lation. Knowing that the bulk OF
outstanding stock is in the hands of
persons who do not sell, whatever
happens. it is simpe matter Tor
any outside speculative group to get
a control over the floating supply
and mark the stock up easily.