Evening star., 1924-11-07
ANOTHER RAILWAY
MARKET IN STOCKS
Buying in These Securities
Spreads-OiIs Also Get
i More Attention.
BY STUART p. WEST.
Special Dispatch to The Star.

Special Dispatch TO The Star
NEW YORK, November 1T was
railway market again today. Inc
great strength in the rails SUSTAINED
the industrial list during the greater
part of the time, and here and there
special buying went on, as In some
of the oils. But the big investment
and speculative buying of railWa!
securities threw everything else IN
the shade. The difference between
the market of the day and that or the
day before was that the loWer-grade
on-dividend-paying railroad STOCKS
no longer monopolized attention Inc
old line dividend payers were fully
as conspicuous in the advance.
Very Little Fresh News.
There was very little in the way OF
news or even rumor accompanying slne
rise in low and medium priced ralls
which had not often been hearo pc
fore The Street eagerly seized upon
every mercer suggestion and every IN
timation of the beginning of dividends
that was going the rounds. ROCK
Island had one of its oid-tlme ad-
vances. The excuse did not lie IN
earnings which will hradly show TINS
year more than 3A per cent on the
common. 1t was due to the conviction
that the road will ultimately wind up
ST. LouisSan Francisco made a ne"
high, and so did southern Railway.
The Sea board Air Line made new highs
for the year, and SO did Missouri IA
cific. Chicago Great Western Paclhc.
st. Louis, Southwestern and Kansas
City Southern all reached the best hC-
ures of the present move. 1naSmuch
as Kansas City Southern is only earn
ing 81. per cent on the common. there
nhaSG
the situation.
The buying of the stock was partly
sympathetic with the strength in other
low-prced rails, and partly it had in
view the possibility of a consolidation
with other lines.
Among the standard dividend payers
New York Central led the way. As 1t
crossed 112, getting UP to top prices, II
began to draw a'ong the others. Atchi-
son. Union Pacific, D., L. & w, Reading,
r. & O., Southern Pacific and L. & N,
one after another, fell into line. The
main consideration in all cases was the
attractive return, now that all danger
of anti-railroad legislation has ap-
parent1y been removed. Members of the
Van Sweringen group We're in demand.
the old Nickel Plate Chesapeake and
Ohio and the Eries.
Next to the rails the main interest lay
in the oils. Pacific Oil was the leade,'
here with an advance across 54. Phillips
Petroleum was active above S5 and
Marland was heavily dealt in around 81.
Biggest Rail Move Since 1918.
The railway novement-the most
important since the Short-lived ris-
following the armistice, in November,
1918, has both an investment and
speculative aspect. Railroad stocks
with long unbroken record of divi-
dends and earning these with A large
margin besides, had obviously been
selling out of line with the money
market, provided the assurances were
given that the present transportation
act was not to be meddled with. Out
side investors were waiting for this
assurance before putting their money
into this class of securities Once
they had it there was yeritable
rush to buy.
The speculative side is what has
been seen since Wednesday morning
in the lower-priced issues. Here there
is the incentive, on the one hand, of
prospective railway mergers; on the
other hand, of the inauguration of
dividends where these are not now
being paid.
A significant feature of the Stude-
baker situation is the fact that that
corporation no longer owes any money
at the banks. The september so bal
ance sheet reported notes payable of
$4,000, 900, but it is understood that
the corporation has wiped out this
obligation.
UnfavorabIe reports regarding the
business of the Columbian Carbon
Company have reached the street.
The income statement for the first
nine months of 1924 showed a bal
ance of s4.24 share, or more than
enough to cover the full years 81
dividend requirements. However,
present business is understood to be
somewhat less profitable.
Brown Shoes report for the fiscal
year ended October 81 will be issued
shortly and the balance for the COM
mon is expected to be around SO a
share. There is talk of the remaining
issue of prSferred stock being retired
more quickly even than provided for
by the certificate of incorporation.