Evening star., 1924-08-06
PRICES UNCERTAIN
IN STOCK MARKET
High-CIass Rails Strongest
at CIose-Much Greater
Caution Displayed.
BY STUART p. WEST.


Special Dispatch to The Star.
NEW YORK, August 6.-During the
greater part of the time today the
tendency of prices on the Stock Ex-
change was uncertain. Following
the reaction of the previous day trad
ing set slower pace. Still, most of
the special movements were upward,
demonstrating that the pools and
other speculative ,nterests committed
to the rise had by no means
abandoned the fiead.
A good deal of a shock was occa-
stoned by the news which came an
hour after the Tuesday closing. that
dividends on both classes of Pressed
Steel Car shares had been deferred.
These stocks broke sharply again.
The president of the company was
quoted as intimating when the full
results of the fiscal year were com
piled, a sufficient amount would be
found to pay the preferred dividend.
But the fact is that Pressed Steel Car
has not been noted for conservatism
in its dividend policy.
In 1922 it incurred a deficit of ST.
$4,000 in order to maintain I per
cent on the preferred. For the II
months ended December 81, 1923, had
the full per cent on the common
been paid. there would have been a
surplus of only s325,000. The COM
pany, therefore, was not in position
thai Others were to stand the slump
in the equipment business during the
first half of 1924
Leather Stocks Strong.
The only possible explanation for
the strength in the leather stock s
was that the present owners pald
SO much higher prices that no amount
of poor earnings and discouraglng g
L,
The comparative SlenderneSS of the
market supply makes it easy TO bid
up prices from time to time where
a short interest is accumulated. A
new high for Central Leather pre-
ferred was certainly not in keeping
with the recent report for the June
quarter, with its mounting deficit
of s744.767, against s79.637 a year
ago. In the same three months
American Hide and Leathers' net
profits fell off to s36.567. against over
100000 in the first quarter of the
year.
Some of the medium and low-priced
rails which figure as merger possibil-
tiles were in demand, among them
Texas and Pacific, NJ. K. & T, and
the Western Marylands. Gossip for
some time has connected both Texas
and Pacific and Missouri Pacific with
the New Orleans. Texas and Mexico
systems. Pittsburgh and West Vir-
group in which the Van Sweringens
are credited with being interested.
Western Union in Run-up.
Among specialties with narrow
market Western Union was run up
sharply, and so was American Radia-
tor. The pools in Congoleum and in
Philadelphia and Reading got busy
again. Public Utilities were bid up
for a time under the lead of Con-
solidated Gas, Columbia Gas and
Brooklyn Union Gas.
Some of the high-priced rails stood
out in the later dealings. Atlantic
Coast Line sold up to its high. and
D., L s. w. exceeded its top for the
year. Buying was resumed in a mod
esate way in New Haven, carrying
the stock across 2S. Following the
publication of the weekly steel trade
reviews, which did not come up to
expectations, Steel common sold off
and independent steel shares were
heavy. General Electric was n strong
feature in the last hour.
Steel Report Disappointing.
The Iron Age. outlining the steel
conditions, throws a good deal of a
damper upon the idea that there has
yet been any pronounced turn for the
better. At the same time It throws
an interesting sidelight on the extent
to which the stock market rise has
got ahead of actual business improve
ment- At the extreme low the steel
mills were down to 40 per cent of
capacity. The average now is only
IS per cent or less than half what it
was in March.