Evening star., 1924-07-03
SHIPPING STOCKS
DISPLAY STRENGTH
Many Accounts Squared Up
in Today's Trading-Motor
Shares Strong.
BY STUART y. WEST.

NEW YORK. July 3.-The huctu
ations in the market today had very
l&ttle meaning beyond the clearing VI
of speculative contracts in prepara
tion for the holidays. The stock
exchange has voted to remain opeT
Saturday, but a large percentage o1
the active trade element will not be
present. The process of house clean.
ing involves some selling of lons
stocks and some covering in of shor,
stocks, but the distinguishing feature
was the unwillingness to enter into
new engagements. AS result it was
a duh and quite stupid session.
The feature was another extraor-
dinary jump in American Water
Works common, accompanied by d
more moderate advance in the pei
cent preferred. The latter around "a
was still IL points away from the
price at which ii is retireable. This
made II appear more likely that the
motive for the buying in the com
mon stock lay in the expectation OF
dividends rather than in the cancel
lation of the + per cent preferred
stock.
Other Utilities Favored.
other PUBLIC utility shares con-
tinued to be favored in the buying.
reason for the advance in INTERIOR
ough Rapid Transit to a new high
around so. The company is precluded
from paying dividends under the re-
organization plan for a number of
Years, and present earnings. although
on the increase would not allow any
distribution even if it were permis-
sible.
In the motor and related stocks the
leaders We're General Motors and
II. .lxs.ar .r.aI
tors was quite remarkable consider
ing the Skepticism which Wall street
has felt for long time past regard
ing the outlook for the automobile in
dustry. The jump in Dupont was
sympathetic with the move in General
Motors
Shipping stocks were notably
strong with the Mercantile Marines.
American International and Atlantic.
Gulf and West Indies the leaders.
Nothing now. however, came out in this
connection
The usual attempts were made to
fit the price movement into develop
ments in the political situation. When
stocks were shading off early in the
day Wall street had Il good deal to
say about Wednesdays rise in the
McAdoo vote and the definite an
nCuncement of the La Toilette candi-
dacy. But subsequently these incl
dents were quite forgotten.
Big Advance Not Warranted.
AS q matter of fact, taking We'd
nesday afternoon and this morning
together, the decline was no more
than a normal setback in a market
which had been going up with few
Interruptions for nearly month. 1t
was acknowledgment. however, of
what has been perfectly apparent to
impartial observers, that the sur
ruundingS were not such as to war
rant any sustained advance AT this
time.
From the point of view of the finan-
cial community there was nothing un-
satisfactory about the occurrences at
Madison Square Garden. The decla-
ration of a third dparty movement oc
casioned no unpleasant surprise; it
had been fully expected.
Had there been any uneaSineSs over
politics it would have shown in the
railway shares. Both Republicans
and Democrats had gone on record
as favoring lower freight rates. The
La Toilette program. as outlined this
morning, called for government own
ership at valuations of half those
fixed by the Interstate Commerce
Commission. But railway stocks
moved very little one way or the
other.
United States Rubber's Position.
The declaration of the regular
quarterly dividend of United States
Rubber preferred bore out the streets
best information on the subject. 1t
was reported that conditions were ex-
pected to have SO improved by Janu-
airy, 1925. that the continuance of the
regular rate will not be questioned.
The earnings for the first six months
are understood to have fully covered
preferred dividend requirements with
balance of well over 81 a share on
the common.