Evening star., 1923-10-15
STOCKS Do BETTER
IN TRADING TODAY
Leaders Score Good Gains,
Tire and Rubber Shares Off.
French Francs Higher.
BY STUART Il. WEST.

OF 1T, was in the main bearish as the
new week began. Much was made
of the fact that the average pric,
level had broken the lows of tn,
summer, the professional view being
that this was an indication of still
lower price trend.
Butts as very often happens, wher
the speculative crowd all thinks one
way, the market moves the other. AZ
soon as it was seen today that rea,
stocks were not coming out despite
all the propa ganda of bearishness
traders started in to cover, and this
buying lifted the highly speculative
industrtals a point and half tc
two points. The principal gains were
win Locomotive. American Can, Davi.
son Chemical, Dupont and Studebaker
Tire Cuts Cause Selling.
some further selling occurred il
rubber and tire shares on the an
nouncement that Fisk Rubber had
cut price 10 per cent in order to meet
the Firestone cuts. It was given out
that other companies would follow
suit. and thus Wsfl street had q
stronger impression than ever of the
severe competition in the tire trade
These stocks GIu not rally with other
industrials, Jtt the selling in them
was not large. There was not enough
10 Warranz the conclusion that they
nad discounted the worst of their
trade Conditions. But it was fair to
tive 20 the bad news the way they
~orAd have been n while ago.
announcement that the third Read
Tag segregation plan had been ap-
9roved at the special meeting of stock
holders today did not come unexpect-
edly. Reading stock merely moved
with the rest of the market, making
no particular effurt to express the
bullishness which some people feel
now that trading in the coal COM
pany rights is about to begin on the
STOCK exchange More thought is tC
be taken of how Reading, selling in
the higher 70s will look with some
z2 to 23 points taken off its market
price. Counting all sources of in
come, the old Reading company is
$40 on the $50 par oG .:le common
stock. With the coal earnings de-
quoted. IL is still figured that Read
ing Will earn it's present 81 one and a
half to two times over. At the re-
adjusted price the stock would re-
turu little over per cent.
Oils Somewhat Firmer.
Oil stocks were somewhat firmer.
and copper and smelling issues did
better as the pressure againt them
was relaxed. 1t has been noticeable
that Ray Consolidated did not go
down with most of the other men,
hers of the group. and today some
FAIRLY large transactions around IL
attracted attention. This buying
was again taken to foreshadow a
successful conclusion of the nego-
tiations for "a southwestern copper
company, that will introduce enough
saving in the overhead to partially
Offset the increase in labor costs.
Fisher Body Scars.
A sensational jump of % points in
Fisher Body to 1S0 was an echo of
the sharp rally in Durant' shares on
the curb. That this was an excep-
tional transaction was shown by the
was offered at us, with the best bid
154.
opinion regarding the size and
temper of the short interest in
brokerage houses today was still
mixed. but the rise in a number of
the speculative issues, such as Ameri-
can Can. Studebaker, Gulf states
Steel and American Woolen in the
first hour was reflected in fresh hope
on the part Of those who believed the
market was due for rally on purely
technical grounds. Efforts were made
to trace the buying, and invariably
the idea was expressed that profes-
sional bears were beginning to be a
bit worried again.
News that plans were under way for
-he split-up of Liggett & Myers
stock on a four-for-one basis was Of
interest. 1t is expected that the par
value will be reduced to s25, and at
the current selling prices of the stock
the new shares would be somewhere
around So. Present dividends on 1.ig-
Tett & Myers amount to S12 annual
1y, and 1t is likely that the new stock
will pay 81 a, year, or the equivalent
81, 81 hry
Jiggett & Myers has been anticipated
FOR several months past, and it is
thought that other tobacco companies
may take similar action.
The notable incidents in today's
markets were the strength in French
exchange, the continued advance In
cotton prices, and the disregard in
the stock exchange trading of the
prevailing pessimism in speculative
quarters.
Francs I'm Strong Position.
With the exception of day or two
in September, French francs were
selling at the highest in several
months. The principal incentive back
Of the rise was no doubt the report
that the German labor unions in the
.Ruhr had ordered their men back
to work.
But such Improvement could scarce
Iy have occurred had there been any
grave apprehension in financial
circles regarding the outcome of the
German food riots. These were no
2nore a consideration in the markets
Of the day than they had been on
Saturday.
The shorts were severely punished
in stocks In which they have recently
been most active AS the afternoon
went on there was quite q scramble
TO cover short contracts in American
can, American Woolens, Studebaker
Baldwin and some of the steels.
american Can was up three points,
Baldwin nearly as much, and the
Steels point and half. The ad-
, vance was due to an oversold condi-
sion in the market itself and to ex-
aggerated views regarding the un-
certainty OF the business outlook.
"a. F. Chain stores Very Strong.
and department store issues
were again conspicuous. Holders of
Woolworth refuse to be discouraged
by the repeated postponement of
dividends, increases or melon cut
-tings." The stock jumped almost to
ttH record high. and this was fol-
lowed by an advance in May Depa rt-
3nent Stores and one or two other
- members of the group. The same in
csnttye made the tobaccos again
prominent in the trading today. The
Jump In Beechnut Packing across IL
Che highest 1T has ever sold-was ac-
companied by the usual discussion of
possible increase in the dividend but
the main explanation lies in the fact
that the stock has never been widely
distributed. Petition for a receiver
Tor Columbia Graphophone, announced
this afternoon, had long been fore
shadowed by the selling prices of the
stock.
LIVERPOOL COTTON.