Evening star., 1924-09-15
RAILS
MARKET LEADERS
Rubbers Do Better-Ad-
vance in SteWart-Warner.
Trading Light.
BY STUART y. WEST.
Special Dispatch to The Star.

Specidl b1spdtcn 10 ne SUIT
NEW YORK, September 15.-Lo"
priced railway shares came in foI
more attention in the market today
because of the revival of rumors re-
garding possible and probable con-
SolidationS. At intervals the story
is current that Southern Pacific will
take over the Rock Island, and Wall
street genuinely believes that this
will come true. The rise in Rock
Island common today on recrude-
scene of the same story was one OF
the features of the market.
In other low and medium priced
rails there was considerable activ-
ity for a time, evidently sympathetic
with the move in Rock Island. But
there was no especial push behind
any of these moves.
Seaboard Air Line shares were bid
up, there was a bit of a stir in the
WabaSheS and in New Haven. St
Louis Southwestern issues were
strong. The preferred, which is earn
ing it's dividend more than two times
over. was up over a point and half.
The common stock, around AZ and
showing above s per cent. is regarded
as one of the dividend prospects of
the next year or so.
StS Paul Stocks Improve.
" - ne lower pTlceu rails lIipTpN-
in> Cne pressure was lifted from
SINE of the dividend payers like
Northern Pacific and Great Northern
preferred in which there had been
considerable selling last week. st.
Paul stocks were also inclined to do
better, buying, however, representing
principally the covering-in of short
contracts in which a profit still re-
manned.
The sl5.oOO.ooO preferred stock
issue of Columbia Gas and Electric
was regarded as a bull market on
the present shares. because it will
provide for the capital requirements
of the company for some time to come
and will open the way for the grow
ing surplus earnings to be applied to
common share dividends. This WAS
the motive back of the buying wlich
carried Columbia Gas to new hig 4
above A.
Rubber~ Arc Stronger.
On the strength of reports that
United States Rubber would do fully
as we'll in the second half year as it
did in the first. when earnings
amounted to over 81 share on the
common, rubber first preferred went
higher. The Goodyear stocks stood
out more prominently. with the pre-
ferred up nearly points.
The advance in Warner
was set down to the covering of
shorts put down last week on re-
ports that the present dividend was
not being earned and that further
cut would be necessary. The jump in
American Chicle was in response to
estimates of earnings much in excess
of anticipations. The pressure was
tifted from American Ice. Industrial
alcohol made better showing than
1t had for several weeks. as the re-
suit of another advance of 3 cents
a gallon announced this morning in
all grades of alcohol
CocO-COla Advances.
The same sort of buying which was
observed in Coca Cola when it sold
last week between 50 and II con-
tinued today, carrying the stock to
Its best prices for the current move
ment. 1t was calculated, however,
that 90 per cent of the business in
Coca Cola stock was being done by
professionals. This condition was
not unusual, for Coca-Cola is a
favorite of the speculative element
and responds most readily to their
activities.
The 81 dividend which has so often
been regarded by the outside fol-
lowing as unsafe will be maintained,
according to well informed people.
The recent activity in New York,
Ontario and Western common could
be explained on the ground that the
company was being considered in
merger plans of the New York Cen
trail or some other groups. Earnings
provide no incentive to the buying
of the common stock, for Ontario and
western has shown barely enough
to cover fixed charges