The Birmingham age-herald., 1924-11-21
STOCK LETTERS

NEW YORK, Nov. 20.-As absence of | action on rediscount rate offered to banks was undoubtedly the most inn portant factor in the developing over night. Many stocks were thrown on | the market yesterday as a result of ru- mors in regard to an increase of dis count rate and these stocks were re- placed today. The market was again active with rails serving as leaders, es- pecially those shares of recently re- organized companies and low priced rails that have recently been behind the market advance. Belief Is gaining thot rails will now be allowed to earn 5A per cent on the value of their prop erty and the expectation is that large sums of money now in taX-exempt se- curities will be transferred to rail is- sues as soon as government officials succeed in reducing maximum suh tax to 25 per cent. Reports from Boston were to the effect that arrangements are taking care of New Haven's $2S,000,- 900 European obligations, due April 1 had practically been completed, aside from rail mergers we now have merger rumors in connection with several of the large sugar companies and also chemical stocks. Oil stocks were promi- nent, reflecting an almost general ex- pectation of an impending advance in price of crude oil. Preliminary figures
 
 ing that pipe line and tank farm gross domestic crude oil stocks east of the Rockies decreased 558, 900 barrels in Oc- tober are considered in the oil indus try as very important in that they re- veal that crude stocks were drawn on last month for the first time in about two years. There is no question but that we are in a big dread bull mar ket and an enormous public demand is apparent, but 1t would be well to keep commitments within proper limits. Most probably the reaction signal come from call money market. Total sales, 2,616,- 400.-John r. Clark & Co.
 NEW YORK, Nov. 20.-There was no change today in the character of trad ing and prices on the whole moved forward during the entire day with great enthusiasm. Sales were well in excess of 2,500, ,000 shares and during the last hour number of stocks registered substantial advances. It was an old fashioned rail market in full progress at the close with Northern Pacific Reading, St. Paul, New Haven, Erie and other leaders reaching the highest levels on the current move. Simultaneously this burst of strength in the rails during the final hour, various industrials con tinued to move ahead. The leader again being steel, which rallied to 116h from 115A. An extra dividend of 50 cents in addition to the regular quarterly dis bursement was made by Texas Gulf Sul- phur directors and this issue also moved sharply upward. Frisco securi- ties, although extremely active, were not in as strong demand as heretofore be- cause of the uncertainty surrounding the dividend policy of the company. No news was forthcoming regarding the eX- ecutive meeting held yesterday by com tnta ala. news agencies stated somewhat au- thoritatively that the directors on De- cember 8 would vote for $5 annual dividend policy. The close was almost buoyant, although few scattered issues showed some losses.-Fenner & Beane to Kahn & Virgin.
 NEW YORK, Nov. 20.-The stock market Thursday experienced another day of heavy volume, total turnover approximating 2,616, ,000 shares. Many of the railroad issues repeated their per formance of Wednesday and jumped into new high prices.
 When the stock market started to sag Wednesday a report was circulated that there would be an increase in the fed eral reserve rediscount rate, which proved based, for the federal reserve governors took no such action late yes- terday afternoon. Whatever the origin of this report, 1t was noticeable today that there was the greatest volume of outside buying coming into the market since the recent advance started At the same time there developed large amounts of profit taking and other sell ing. As a consequence, the market became irregular.
 The Wall Street Journal stated to- day, that while 1t is impossible to get definite statement, it is understood that the executive committee of the Frisco railroad has recommended a five per cent dividend rate on the common. It was officially estimated that the Frisco will earn about $10 per share on it's common this year.
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