Evening star., 1924-09-11
RAIL- SHARES WEAK
IN STOCK MARKET
Many Losses Recorded Dur
ing Day-Some Strong
Spots Also Noted.
BY STUART p. WEST.

OFcCIAl DlspdlCH u Inc Guar
NEW YORK, September lin to-
days stock market the chief point OF
discussion was the outcome of the St
Paul Railroad situation. At the open
ing efforts were obviously made to
bid the stock up for the sake of pro-
ducing a condition more favorable to
unloading. After ST. Paul preferred
had sold around 81 and the common
at 1874, selling broke out again. EX-
pert opinion was that even at the
reduced prices the stocks were out OF
line with the junior bonds. which at
least would get something out of any
reorganization that might occur. In
other words, the bonds were selling
relatively lower than the stocks.
Oil Shares Also Weak.
The estimates current Wednesday
on crude oil production, in which q
small decrease was shown, were con-
tradicted by the American Petroleum
Institute, which came out this morn
ing with figures Indicating an in
crease of $500 barrels daily during
the week ended September 6. This
had it's effect upon the oil shares, not
in bringing about anX important sell
ing, but in stopping at least for the
time being operations for the rise.
Other Northwestern railway shares
felt the effect of the ST. Paul difficult
ties, although their cases are not al
all parallel. Neither Great Northern
or Northern Pacific has any early
maturitieS to face. The former Is
earning at the rate of 7l2 to per cent
upon it's stock, the latter little
over per cent. Both pay per cent
dividends and return at present prices
around S per cent Nevertheless
Great Northern preferred at one time
today was off points. while North
ern Pacific was conspicuously weak.
other Stocks Irregular.
Speciality moves were once more
quite irregular. Among the public
utilities Brooklyn Union Gas was
bought again in expectation of an in
crease in the dividend from the pres
ent 81 TO ST. North American was
supported around so. Department
Store shares were taken up again
particularly Gimbel, r. II. Mack and
Associated Dry Goods. Hartman Cor
poration continued under pressure
because of the feeling that the full 81
dividend no longer seemed safe. De-
spite the firmness of the crude rub
Der market, the principal rubber
shares were unsteady. Weakness in
Stewart-Warner was due to reports
that even the reduced dividend of SIS
a share is not being earned and does
not appear likely to be earned dur
ing the remainder of the year. This
led to the discussion of the chances
of another cut.
Time Money Easier.
Undoubtedly there was a direct
connection between the further cas-
ing in time money and the announce
ment that the latest issue of Treasury
certificates had been heavily over
subscribed. These certificates have
been put out at 2A per cent, the
same as the last time, but with the
important difference that they are
to run for II instead of 6 months.
Had the Treasury authorities figured
an early change in money conditions,
this lengthening of the maturity
period would scarcely have been ven-
tured But the fact that the offering
was so readily taken showed that the
preponderance of banking opinion
agreed with the Treasury that higher
money rates were still some distance
off,
Sterling Exchange Up.
In the last hour and a half the
stock market strengthened generally.
The street refused to put much con-
fidence in the new figures on oil pro-
duction, contradicting those of We'd
nesday. Oil shares were the leaders
in the little buying movement which
developed in the final trading.
Sterling exchange was up moro than
a cent and others of the principal
higher.