Evening star., 1923-06-11
OIL STOCKS GAIN
/ . IN LATE TRADING
Southern Railway Leader
Among RaiIs-Sugars Are
I Under Pressure.
BY STUART II. WEST.

Special Dispatch to The Star.
NEW YORK, June 1.-THE stock
market started in today substantially
where It left off on Saturday. Active
buying of the railway shares was
again a feature. carrying them up
another half point or so. Soon. how
ever, it became apparent that the
usual Monday experience, after a
\ week of rising prices. was to be re-
peated.
1t is quite the custom under such
circumstances for the market to re-
and Office traders who have been fol-
flowing the upward turn. This sort OF
selling made it's appearance within
the course of the first hour, checking
the rise and forcing prices downward.
Special Weakness In Oils.
Special weakness developed again
in the oil stocks and in the sugars.
The street is looking for further
cuts in the mid-continent field to
he announced very shortly. and this
was the reason for the selling. A
number of the oils got down prac-
tically to the extreme lows OF last
month.
Selling of the sugars was some
what Influenced by a lower market
for raw sugar. The decline in the
sugar lfldThel, however, was tou
slight to be regarded as the chief
explanation for the drop in sugar
stocks. Rather this .was due to dis
appointment because dividend talk
has not been substantiated and, sec
ond, because the incentive for spec
ulation looked for from a further
advance in sugar prices has not ma
terialized and. according to trade
authority. may not materialiZe.
Railway Stocks Drop.
Railway stocks felt the check i'm
posed by the heavy selling in in
noon rather generally. There were
one or two noteworthy exceptions.
~Suying of Southern railway COM
mon at a new high above 26 was re-
] markably persistent. There is a
strong pool at work in this stock
which maintains that Southern Rail-
way common is just as well able to
go on the dividend list as was Pere
Marquette common, and predictions
are being made that this will happen
later in the year.
The pressure against the oil stock s
was halted in the afternoon by a sud-
den upturn in California Petroleum.
Those who have been best informed
about the recent movements in this
stock say that the position has not
been changed. that nothing new is to
be said on the subject of earnings
and dividends, but that the market It
INTERESTS WHICH nave Deen Ddck OF
the rise from 80 were still in full con-
trol. Southern Railway continued it's
leadership among the rails.
Effect of Loan Uncertain.
The stock market, in the hands of
the professional element, was not in
position to reflect any broad view
or what the success of the Austrian
bond issue will mean for European
Reconstruction.
1t was mainly interested in its own
local concern. namely, whether last
weeks rise had not been sufficient to
invite some reaction. accepting the
view that the time is not ripe for
any general renewal of last winters
speculative campaign.
The lack of interest in the sugar
attention probably than it ordinarily
would because of the outstanding
strength in the rails. Nevertheless it
is noteworthy that their tagging
tendency is regarded as significant.
The market for the sugar issues
has moved pretty closely with supply
and demand in the sugar trade, as in
dicated by prices of raw sugar. Com
panies like Punta Allegro. Cuba Cane
and Cuban American have made their
1923 crop and are in very good po-
sition, but the enthusiasm for the
stocks of these companies as a group
has worn off. Less is hoped for in
the way of foreign buying, and it is
thought that the price of raws may
become fairly stable around cents 4
pound.