Evening star. [volume] (Washington, D.C.) 1854-1972, 1915-10-28
WAR SPECIAL TIES WEAK
WITH SERIOUS DECLINES
Studebaker and Baldwin Locomotive
Under Heavy Pressure-Some
Bearish Interpretations of News.
Whole Stock List Joins in Declining
Movement in Last Hour, With
Small Recovery From Lows.

NEW YORK, October 2s.-For few
minutes, following a rather weak open
ing, the stock market gave indications
of checking the decline and recovering
some of the severe losses sustained In
the late trading Wednesday,
In this initial display of strength fol
the session the rails were quite proml-
nent. with point gains and some with
even larger advances in the list.
But this show of strength was soon
dissipated under the depressing fnf1u-
ence of severe liquidation in Baldwin
Locomotive, Studebaker. Maxwell Mo-
tors, Industrial Alcohol and some other
stocks that have acted in a sensational
manner on the upturn and which were
past due for turn the other way.
Hustling for Margins.
Naturally the slump that came yes
terday afternoon caused hustllns
among the brokers for margins to
make good the deficits caused by the
decline in the highly speculative stocks
with some calls elsewhere. the curo
market war stocks also had to be pro-
tected
Many traders who retained control Oh
their stocks through the comparatively
small reaction, when the rise is con-
sidered, were not satisfied with the re
dictionary trend and unloaded, thereps
increasing the selling movement.
There We're two very positlVs ieao t.
for the decline which developed yester-
,day and for further breaks TINS morn
ing.
Not Bull Factors.
The action of the Studebaker COM
pany directors in selling treasury stock
for the purpose of paying OF S2'5oo'ooo
serial notes is not considered a bull
factor on the street. The company was
reported as making all KINDS OF
profits, and should have been able 10
hold on to Its treasury stock. moreover,
the officials are deliberately sacrinclh
a large amount of money, as the STOCK
is to be sold at 10 share, with the
market value about 40, which gives 10
the entire proposition the appearance
Of necessity and an effort to bull the
market.
There is also hint of increased divi-
dends, which would have been better
received, without the sale OF treasury
stock, in the statement that the COM
pany is now acquiring sufficient pre-
ferred stock to meet requirements OF
the charter of the corporation, before
paying more than per cent on the
common stock.
This action doesn't look like two
shares for one and 6 per cent on each.
Moreover, Bethlehem Steel will not
issue ten shares for one. as speculative
ly planned, Mr.. Schwab asserting that
a readjustment of capital can await
more normal times.
The sale of Pennsylvania Steel to
Bethlehem, almost consummated weeks
ago, hangs fire and may not material
ize-another anti-bull factor.
Studebaker Under Pressure.
Wall street actually paid considerable
attention to peace rumors, showing the
nervous condition of operators, which
was intensified by the collapse of the
French cabinet and. the Balkan situa-
ton. Bears, finding the market turn
ing their way, became bold in their
selling of the war specialties and timld
liquidation intensified the weakness.
Studebaker was under severe pres
sure, under suspicious that some cock
and bull stories had been circulated re-
garding its enormous CO profits. fol-
lowing its financial announcement, and
opened with a loss 3k points, rallied
Il and then dropped with occasional
fractional recoveries to 1853. losing IL "
points. marking the heaviest loss OF
the morning.
Baldwin Locomotive, in a decline &c
1875, lost IN points; Crucible Steel lost
Motors, s; Lackawanna Steel. 3; WHY'S;
Overland, S. Industrial Alcohol, Z. and
minor industrials 1a2 points.
Good Undertone for Copper.
Copper stocks showed good under
tone.
Steel common was under considerable
pressure, but nothing like that on spe.
cialties, as 1t broke to s3M, about q
point net, the preferred remaining
strong.
Southern railway held a point ad-
vance on common and " gain on pre-.
ferred. while Canadian Pacific held the
better part of a point advance.
Other rails lost ha1 point.
London Selling Reported.
London was reported as a heavy
se,er of American securities partially
for English operators and largely fol-
the account Of Holland investors.
Small Recoveries Later.
In the first hour of the afternoon
there were small recoveries throughout
the LIST, extending to two points in the
snecialties and to one-half point II
Steel common.
The rails were reasonably steady.
Profit-taking by the bears. who SOLD
earlier in the session, was perhaps re-
sponsible for the recoveries,
Slump in Entire List.
In the last hour Of the session the pres
sure on the entire list was materially in
creased and prices suffered further de,
clines. led by Studebaker. which broke t.
1853, over 20 points for the day.
The rails and minor industrials fol
lowed, Steel common dropped to S3A
Baldwin Locomotive to 123h and further
losses were sustained in other war spe
cialties.
1t was day of general liquidation an6
weakness from which there were but un'
important recovertes.