The Washington times., 1924-04-05
BRIGHT FUTURE
! FOR RAIL
I STOCKS
Assume Commanding Position
in Market During Past
Week.
By w. s. COUSINS,
copyright, 1924. by Cosmopolitan
News SerVica,l

copyright, 1924. by Cosmopolitan
News Service.)
NEW YORK, March 5.-Railroad
stocks assumed a commanding posi-.
ton in the stock market this week,
and with this unexpected develop.
ment came floods of rumors of con-
solicitations, proposed dividend in.
creases, high earnings and more fav.
orable Congressional legislative ac-
ton. Outstanding in the advance in
railroad shares were a number
which have stuck to narrow ranges
of price changes in recent months,
including Southern Pacific, which
gained An points Thursday, and sub
sequently sold at the highest price
for the year.
Rail Outlook Good.
That the outlook for railroad prop.
critics is better than at any time
in the postwar period is readily ad-
mitted, but the public has been de-
ceiyed so often by the sudden col
lapse of railroad share booms that
1t Is not an easy matter to retain
their interest. The record-breaking
freight traffic of the first quarter,
although declining in some sections,
gives. officials encouragement to be-
lieve roads Will earn fully SIS per
cent on valuation this year. In 1922
they earned Ala per cent, and in
1923, $40 per cent, in addition to
providing for large expenditures for
improvements and expansion.
Another encouraging factor is the
probability there will be no legisla'
tive tampering with the transports
ton act during this session of Con
gress.
The drive against high-priced in
dustrial stocks spent it's force early
in the week and, while brisk recov'
cries were not numerous they dis
played good resistance to profes
sional bearish attack, and most Of
them retraced lost ground
Motor stocks responded to favor
able presentation of the industry
condition and higher prices that pre-
vail. Oil stocks were higher but
lacked the punch evidenced in past
upswings of the price pendulums.
Steel Production High.
Returns from basic industrial
concerns for the first quarter of
1924, either on the basis of actual
results, were favorable. The out
put Of automobiles is in advance
of last year, though sales condi-
tons are not satisfactory. March
steel production was exceptionally
high; the oil industry apparently
within control, though new sources
of crude are desired; building con-
tinues heavy, with an increase IN
big centers; money abundant, bor-
rowing rates low and sentiment
generally cheerful.
In Industrial financial markets
the most important event Of the
week was the sharp advance in
Belgian francs, duplicating the per-
Torrance Of the French franc two
weeks ago. In anticipation of a
constructive announcement to oe
made public Monday by the Dawes
committee, foreign money markets
were firm.
A sharp rally in cotton prices
was somewhat confusing to the
bears.
Wheat also demonstrated there
are other ways for prices to move
than downward. General commcd
ity prices showed more declines
than advances, recessions extend
ing to articles of clothing, food
Stuffs, ETC., but not to rents. Bust
ness leaders point to the need OF
an assurance of tax reduction be
fore much progress can be made in
commerce and industry, and arc
generally hopeful of securing this
In a few weeks.