Evening star., 1924-03-19
VIOLENT ADVANCE
IN n. & v. SHARES
Railroad Stock Features
Market on Reports of Lease
Move by Pennsy.
BY STUART Il. WEST.
Special DISPATCH to The Star.

Special Dispatch TO The Star.
NEW YORK, March ia rema rk-
able advance in Norfolk and Western
was the central incident in today S
stock market. Opinions differ as to
what a stock with a Z per cent guar
antee by the Pennsylvania would be
worth. But no estimate places the
price at less than 12O. Starting off,
then with this as minimum, the
question has become, what else Nor
folk and Western stockholders are
going to get If the lease goes through.
as appears altogether likely. In well
informed quarters the hint was given
today that besides the per cent
guarantee there would he straight
out cash extra dividend OF 10 per
cent and an extra stock dividend Of 20
per cent.
C. & o. stock Also strong.
The Norfolk and Western move had
q stimulating effect upon other rails.
Chesapeake and Ohio crossed - The
fact that Chesapeake is earning 81
share more than Norfolk and
Western received Il good deal of at
Jention. Wabash stocks We're taken
up again, with Dotn common ana pre-
ferred y at new highs. \ new high
record also was made by \ New
Orleans, Texas and Mexico on rum"rs
of important developments inpend-
ing, unconnected with present earn
ings, which scarcely : seem to war
rant the present selling price of the
stock
In the Industrial section there were
some extraordinary cross currents.
\ heavy selling movement directed
\. nj n nd ,aar
forced these stocks down we'll below
the lows of the previous day. A A.
point break in Cruciblc Steel shook
up the entire steel group. Yet in
race of this weakness General Elec-
tric was pushed up to Il new high
above 230 American Can showed
I.otable buoyancy. and the oil shares
were disposed to gain. At the same
time the leather stocks rose und<r
short covering, and so did other spe-
cialties like American Agricultural
Chemical preferred, in which bear
operations have recently been active.
Anne erican International Breaks.
American International broke badly
on the annual report, showing that
the profit and loss deficit, on account
of write-offs, had mounted from
s6,469.000 at the close of 1922 to Sl2.-
$4,000 al the close of 1923. This
situation, according To the presid ent.
suggested the desirability of a capital
y;eduJuStment u conforms to reduced
scok values Mercantile Marine pre-
erred went down sympathetlcally.
In view OF the unsatisfactory con-
t'itions in the oil industry during
I've greater part of 1928, the annual
II port of Phillips Petroleum. issued
tt ay, was rega rded as particularly
IA orable. Earnings before reserves
for depletion and depreciation amount
ed, to ST., 2,029. against $1,000, 035
in 1922. In hi statement TO stock
holders President Phillips said that
earnings for the quarter ending
March 81, 1924, will exceed those of
any other like period" The company
charged off over S7.000,000 for de-
precia ton, leaving Il balance of more
than SIS a share for the outstanding
capital stock.
The sharp turnabout in Central
Leather preferred and common stocks
was set down by the majority as
short covering, but it was learned
that much of the buying was for long
account. Central Leather bonds also
were in better demand.
In spite of the statement in the
American International report for
1928 to the effect that the manage
ment thinks it's present holdings of
International Mercantile Marine
shares should be retained, the latter
stock went down with American In
ternational.