Evening star., 1923-12-17
RAILS ARE WEAK;
OTHER SHARES GAIN
Oil Stocks Reach New High
Ground-Coppers Active.
French Francs Drop.
BY STUART T.. WEST.

Special Dispatch to The Star.
NEW YORK, December IA sud
den break of 3 points or so in Union
Pacific was one of the conspicuous
incidents of the day in Wall street
1t had nothing to do with earnings
for these are running at the rate
of 1915 per cent on the stoS&. as
against the 10 per cent dividend.
one theory was that the decline was
discounting a new bond issue. Ihe
other view taken was that, like the
Pennsylvania case few weeks ago
it was liquidation of a remnant OF
stock bought up during the war py
the British government and used as
collateral for American loans.
Oil shares Go Higher.
There was nothing new in the oil
situation over Sunday to stimulate
the market for these stocks. Their
advance into new high ground was
simply continuing last weeks move
ment, which in turn was based upon
the consideration of the large pronts
which the oil companies VIII reap
in the event of a further rise in
prices The stronger concerns have
laid in great stores of low w-priced
crude which would return them hand
somely were the oil market to &C
back over even half OF the ground
lost since February. Nearly every
active member of the oil group sold
above it's previous best on the pres
ant movement. The leaders were Cos
den, Sinclair. Marland. the Standard
Oils, Houston, Producers and Refiners
and General Asphalt.
American Can Active.
There was close relation between
the extraordinary rise in Corn Prod
uctS and the equally striking demon
Stration in American Can. The street
has known for year that the same
interests which sponsored the market
for Corn Products from well below
par upwards had gone into American
Can. regarding it as a similar propo-
sition. The policy in Corn Products
has been to gradually reward share
holders with extra dividends. keeping
the regular rate very low as COM
pared with the selling price of the
stock The same policy is thought
likely to be pursued by Amrican Can.
Better appreciation that the street
until recently has been wrong on In
ternational Paper earnings and that
these are going to turn out much
better than expected was accountable
for the continued strength in the
stock American Agricultural Chemi-
cal preferred at ~ was up more than
points on top of Saturdays sharp
rise. Continental Can went along
moderately with American.
Chino Copper In Run-Up.
Chino Copper had brief run-up
which led some persons to wonder
whether the plans for combination
OF southwestern copper companies
would be worked out after the turn
of the new year. Chino has been
considered unit in the projected
merger of several copper producing
companies, which may include Ray,
Inspiration and Phelps Dodge. These
periods of bying are regarded in the
street as part of market operations
preparatory to the formation of a
southwestern combination.
Following last weeks six point
advance in Pierce Oil preferred there
was moderate amount of activity
in that stock again today. Gossip
in the street has linked Pierce Oil
affairs with two or three other COM
panies, but the rumor which persists
is that interests connected with lead
ers in the oil industry have been buy
ing Pierce Oil securities.
The outstanding incidents in finan-
cial affairs today were the continued
strength in the industrial section of
che stock market, a brisk rally in
cotton. and the very pronounced
weakness in French francs.
Heavy Selling in Rails.
Superfcially, the selling of the rails
might have been connected Win lHe
struggle in the Senate interstate
commerce committee and the seem
ingly greater probability of the choice
of an anti-railroad representative as
It's head.
But, as matter of fact. even the
radicals admit that whoever is chair
man there is not the slightest chance
of a measure directed against the
railroads getting through at TINS
session.
The more logical explanation for
the heavinesS in railway stocks Is
that on account of the political agi-
tation the atmosphere is not right
for a campaign in this quarter. Conse-
uuently the active speculative ele-
ment are selling out the rails and
going into other stocks which for the
moment appear to promise better
opportunities for profit.
Values Lower at Close.
AS the afternoon went on some of
the earlier price movements were re-
versed. Profit-taking made itself
felt more in the oil shares. dragging
them down from the top, while Union
Pacific. which had been the particu-
lar weak spot, regained quite part
of its loss. st. Paul stocks were
noticeably weak following the de-
cline in the per cent bonds matur-
ing in the spring Of 1925 to new
low record around Sc. 1t scarcely
needs to be. pointed out that this is
a tremendous discount fer bond
having so little time to run.
rToCTNc IRREGULAR