Evening star., 1923-10-03
STOCKS CO HIGHER
. |N[NELY TRADING
sharpest Advance in Over
Two Months as Shorts
Hustle to Cover.
ny STUART r WEST.

sree,aI Dispatch to The Star.
NEW YORK, October 3.-TodaS
began with active short covering III
stocks like the motors and steels
which have recently been most under
uressure. Very soon, however, in
1erest shifted into the rails. There
were two noteworthy developments
in this quarter which were respon-
Yible for the sudden outburst of buy
ing. One was an uprush in Big Four
stock, well above par after having
started at 90 Tuesday morning. The
other was an active buying move
ment, long awaited, in Reading
shares. ~, A-'
Wild Jump In Big Four.
The jump In Big Four was Sc,
down as an attempt to buy in the
small remnant of the stock not helo
in the New York Central treasury
Reading was bought because OF the
near approach of the time when
stock will be transferred from the
curb to the stock exchange. The
idea was that then more publicity
would be given to the low selling
price of Reading stock with the
rights subtracted.
II. q u. Still Popular.
Baltimore and Ohio continued to be
bought by persons who were attract.
ed by the high yield, as compared
with other rails of similar earning
power, and the stock made new
high. The advance in Southern rail
way common continued, although
opinion Is very much divided as to
q dividend at the meeting next week
Wabash preferred a responded &c
the published estimate that at least
IL per cent will be shown on the
stock at the end of the year.
Much Short Covering.
AS the day, went on the demand to
cover short contracts became more
urgent. The bears in stocks like
Baldwin Locomotive. American Can
and Studebaker were literally rout-
ed. So were short sellers in Dupont
The rise in the last named followed
the statement by the president of the
General Motors Corporation that
more cars were produced in Septem-
ber than in any single month so far
and that the October schedule cailS
for considerable further expansion
This statement also threw light upon
the recent remarkable steadineSs OF
General Motors stock in face of the
drive against the motor group In
general.
Farm supply stocks Active.
Sears-Roebuck and Montgomery
Ward-stood out prominently for
while in the buying. Ondouptealy
this represented the hurried tak1ne
in of short contracts put out on the
notion that the misfortunes or the
wheat farmer would tell upon the
demand. for the products which theSe
and similar companies have to sell
The remarkable rise in corn price:
continued Certain grades sold above
the dollar level for the first time II
three years. Yet at the same time
the weather has been unusuail.
favorable for the rounding up or tnt
new crop and it looks as If tn,
maximum estimates will be. realized
Increase I'm Buying Power.
What this has already meant fol
the corn farmers and the live stock
raisers is set forth in the latest re-
view of the Kansas City Federal Re
serve Bank. which received grea
deal of attention in the stock market
today.
This review stated that the rise il
corn and live stock well above the
levels of a year ago had "stimulatet
activity in other industries and hat
resulted in a substantial increase ir
the volume OF fall trade"
Those who have persistently stuck
to the bull side of the rails in the
face of repeated disappointments had
their reward today.
Zig Four's Rise Spectacular.
Following the 612 2-point rise on
Tuesday. Big Four stock had another
sensational jump today. 1t got well
above the selling price of New York
Central, although under the terms OF
exchange, minority holders of Big
-Four receive only eighty shares OF
New York Central stock for 1GI
shares of their own. At the end OF
last December New York Central
owned 91.21 per cent of Big -Four
frommon. The presumption is that
finding no more stock was coming III
under the present terms of exchange
efforts were made to buy as much as
possible of the small remainder in
the open market.