Evening star., 1923-04-10
RAILROAD SHARES
/ AGAIN TAKEN UP
Sugars Also in Strong De.
smand in Stock Market.
{ Review and Outlook.
BY STUART p. WEST.

BY STUART r. WEST.
Special Dispatch to The Star.
NEW YORK, April 10.-The princi-
pal moves in the market today were
again on the side Of advance. One
of the incidents of the day was a
slight revival of interest in railway
shares. Pittsburgh and West Virginia
and Pere Marquette were bid up
sharply on fairly large transactions,
the motive in both instances being
the expectation of dividends before
the end of the year.
Despite repeated discouragements,
the street insists that New York Cen
trail will raise its dividend at the
June meeting While the buying
movement lasted in the railway sec
tion this stock was one of the leaders.
Oil stocks felt the effect of heavy
realizing, all except Phillips Pc
troleum, the pool in which was able
to get it's specially up at one time
III points. Steel shares were scarce
ly affected one way or the other by
the IL per cent wage increase. This
action had been thoroughly anticl-
pated.
Sugars in Brond Demand.
Sugar stocks were In demand again
high record for the year established
by raw sugar prices.
International Paper was one OF the
few weak spots The street had
looked for bad showing in the 1922
report, but was not quite prepared
for such heavy deficit as was ac-
tualiy disclosed. The management.
always known for its extreme con-
servatism, has charged off losses re-
morSelessly.
In conseouance pbila II ranorted q
deficit of over $9.000.000 on the year,
and a total profit and loss surplus
of S14,S02.000 against s32.S1S,000, at
the close of 1920, these results repre-
sented the situation at the very
worst.
Now, as the president says in his
statement to stockholders. "condi-
tions have vastly improved in many
ways. the demand for paper is large.
the labor conditions are harmonious
and the company is on a profitable
basis"
Review and Outlook.
The three items in the news of the
day which might have been expected
to have bearing upon the markets
were the government crop report is
sued after the close of business Mon
day. the IL per cent increase in steel
wages and the untitled tonnage state
ment of the United States Steel Cor
poration, showing a small increase
for the month OF March in orders on
the books. AS Il matter of fact none
of these incidents had much effect.
Wheat options broke for a time
sharply, but this did not mean that
the grain trade was surprised at the
departments figures. Rather it was
the natural reaction which would
come about in any speculative mark ct
on the publication of news that had
been fully discounted.
The stock market was quite undis-
turbed by the estimates for winter
wheat, showing despite the large in
sixty million bushels less than last
year and over hundred million
bushels less than two years ago.
In former times this might have
oeen used as an argument against
the. shares of railroads traversing the
winter wheat states. The reason why
it had no such result today was sim
ply that under the new methods Of
investigation now employed by the
Department of Agriculture. it often
happens that the April calculations
turn out altogether too low when the
crop is harvested in June.
Steel Shares Quiet.
The steel trade has so long been
looking for an upward revision in
wages that the announcement Great
cd no surprise. The market has had
all time to consider the effect upon
operating costs and it is this, no
doubt, that is accountable for failure
20 enthuSe over the data regarding
production of steel and the advance
in prices.
lions untitled tonnage was only 49,
343: tons for the month of March. But
the remarkable thing is that there
should have been any excess at all
of incoming orders while the steel
plants were being operated at prac-
tiCully full CAPACITY,
The stock market of the day paid
little or no attention to occurrences
on the outside. Professional traders.
with the field to themselves. expert
mented during the forenoon on the
side of advance, bidding up q few
industrial specialties and two or
considered to be a fair prospect of
favorable dividend action. Then, not
having succeeded in obtaining a fol-
lowing for these moves, they turned
iaunching sharp attack against
some of the recent favorites in the
oil group, and in this way unsettling
the rest of the industrial list.
Phillips Petroleum Active.
Phillips Petroleum was d feature of
the oil group; Earnings said to be at
least $50 share have played a large
part in the advance, while the forth
coming directors meeting at the end
of April is expected to result in a
STOCK dividend or PROBABLY 50 per
cent, with the present 50 annually
maintained.
Continued strength in Auto Knit
ters, which carried it to new high
price for all time. was based on a
better appreciation of the earnings
power of this company, and the fact
that directors at their meeting the
last week in April are expected to de-
clare an initial dividend of IS cents
quarterly or at the rate of 50 a year.
Prices Drop at Close.
Some pretense for the selling move
ment on the stock exchange was
found in the hardening of call money
rates. Renewals of standing loans
were fixed at per cent. as against
the Az per cent quotation in force
for nearly week, and loans for the
day only were made in the afternoon
at 51a.
But these advances had no signifi-
canoe whatever for the underlying
credit situation.
The plain fact about the stock mar
ket was that the public, for the time
being at least, has ceased to be re-
sponsive to favorable trade news and
to predictions of larger dividends
Consequently after days of futile ef-
fort to get prices up the professional
element tried their hand on the other
side with a moderate degree of sue
cess in stocks like the oils and equip
ments.