Evening star., 1924-02-14
OIL revelations
WEAKEN MARKET
Bears Force Prices Lower in
Many Issues-Some
] Gains Near Close.
BY STUART p. WEST.

Special Dispatch to The Star.
NEW YORK, February 14.-Fol-
lowing Wednesdays sharp reaction
in the stock market. there was
another period Of active selling in
the first hour or SO today. 1t CEN
tered on the oil shares. but more or
less unsettled the rest of the list.
The selling movement was checked.
however. shortly before midday, and
prices started in to rally.
The oil lease scandal was talked
of in connection with the weakness In
the oils. But outside OF the Pan
Americans and Sinclair there was
closures At Washington affecting the
standing OF the oil stocks. If the
California leases are cancelled, 1t will
deprive Pan American of a promising
make still more uncertain the main
tenance of present dividends. But
the real explanation for the selling in
other oils, like Standard of California.
Standard of New Jersey, Pure Oil.
Cosden. Marland and the rest, was
that there had been over-speculation,
calling for correction In the usual
manner.
Metal Stocks Fairly Strong.
Metal stocks. which had begun to
show signs of advance just as the
general list turned downward We'd
nesday, were inclined to resume their
interrupted movement following the
rise in the metal to 13 cents pound
delivered. Anaconda got above 80.
even while the market elsewhere was
unsettled. Other coppers were frac-
tionally higher. American Smelling
was bought again in anticipation OF
a very favorable annual report. It's
present outlook is particularly af-
fected by the recent advance in lead
prices.
The statistical position of the lead
industry is unusually strong. st. JOS
tation that, with conditions contfnu-
ing the way they are now. the reSu-
lar dividend would be increased.
Senboard Again Strong. .
Among the low-priced rails the Sea-
board Air Lines stood out prominent
ly. following the sharp rise i'll the
adjustment per cent bonds, which
returned to the interest-bearing class
on February !. Back payments ac-
cumulated on the latter, amounting
to 12i4 per cent, would have to be
got rid Of before the way was cleared
for the preferred stock.
However. in 1928, the balance after
all charges, amounted to over per
cent on Seaboard preferred. and with
conditions the way they are now IN
the SOUTH. this showing quite likely
will be improved upon in the current
year Profit taking In Southern rail-
way appeared to have run Its course.
Preliminary figures for the complete
twelve months of 1928 showed a sur
plus after preferred dividends of over
$4,000. 900. against $7.300,000 the year
before. This is the equivalent of SO
a share for the common.
shorts Cover In Woolen.
The advance in American Woolen
appeared to be due chiefly to short
covering. The short interest IN THIS
stock has been heavier than in al
most any other on the list Probably
it was intimidated by the announce
ment that American Woolen Will open
its full fall lines next Monday. the
idea being that the prices realized
might turn out to be higher than
what the street has been figuring on.
The decrease in net income or the
p. Lorillard Company in 1873. as COM
pared with the previous year, was
surprise to those who had predicteo
equally favorable results.
The net after taxes was s6.277,634. as
against s8.133.S97 in 1922, and after all
charges and dividends on both common
and preferred stocks; .nn the surplus surplus
year it was s2,079.sl1. The net income
was the equivalent Of $14.01 a share on
s30,306,420 common stock, against
s20.ll in 1922. The reason for the fall
ing off in net is attributed to some ex-
tent to higher charges for depreciation.
Standard OF New jersey.
Aside from the depressing influence
Of the oil lease scandal on the mar
ket for all the oil shares, something
else has appeared behind the weak
ness in Standard Oil of New Jersey,
according to view expressed in the
street. This company is carrying large
,vp 4
is suggested that new financing would
be found advisable. However, Stand
ard OF New Jersey has vast resources
and plenty of cash, and the theory is
discredited by many.
Francs rallied later in the day. but
not until they had touched a level
only egihteenhundredths of a cent
above their extreme low. Belgium
francs reached the lowest they have
ever sold. These movements certainly
do not suggest that the optimistic
statements regarding the plans of the
international commission of experts
are making much impression SO far.
the Bank of France 200, 100000 francs,
according to the weekly statement,
and the circulation item came down
correspondingly.
Late Trading Uncertain.
The afternoon price movement was
very uncertain. Oil shares had a half
hearted rally. and as result pressure
against the rest of the market was
lifted. But there were few instances
of any renewal of the buying.
The advance of the last two days
in Fisher Body brought forth reports
that 1923 earnings would figure out
over $50 share. Congoleum was
marked up to another new high in
the last hour. Seaboard Air Line is
sues continued active and strong
through the afternoon.
Leaders like Studebaker and Steel
common more than regained their
earlier losses.