Evening star., 1916-12-21
URGENT LIQUIDATION
WIPES OUT MILLIONS
Seven to Twenty Point Losses Follow
Presidents Note and Secretary
Lansing's Comment.
Unprecedented Activity, Great 1rreg
larity-Fifty Per Cent Margins
Demanded of Bargain Hunters.

NEW YORK, December 81. tThe
green trees that had been prepared for
the Christmas window dressing on
Wall street have been fired out in the
back yard All plans have gone awry.
The shakeout is practically complet-
ed and the big profits piled up in the
war brides and other industrials have
disappeared
Commission houses are crowded with
eliminated traders and with Il new
element that would like TO get III at
the bottom, but is far from certain
whether the bottom is in sight or not.
Peace notes have certainly badly
manned the golden goose; whether
they have killed it or not remains TO
be seen. The latest note emanatins
from the White House squeezed mil
lions out of values.
The declaration of an increased divi-
dend by any industrial corporation is
u signal for a raid on its stock
where year ago every one was look
ing for great distributions.
New York bankers. as "A means Of
self-protection. refused to make ad-
vances on Industrial collateral, and the
blow was indeed serious.
With the immediate opening this
morning all eyes were on Steel common,
and when sales We're reported at 104 l2
TO 1914 as compared with los. yester-
days clos z. it was admitted that the
bears had the best of the argume mt
and that the future of industrials was
more or less badly muddled. Traders
wondered what actual peace negotia- =
rions would do to stocks. when rumors
have such deadly effect.
Steel then rose TO 1867 and then il
dropped back to l05. Fifty thousand
shares sold between 104i and 105 !.
Margin calling started with the open
ing of the bell.
Elsewhere declines were very general
and more or less severe Frequently
stocks that should not be Influenced by
wars or rumors of wars, or peace,
showed prominent changes American
Beet Sugar lost 6la points: American
Locomotive. with reports of capacity
booking TO 1918, dropped back points;
American Zinc. with its 10point slump
Yesterday. added more; Republic Iron
and Steel dropped ~, and other serious
losses were sustained.
Atlantic, Gulf and West Indies made
the record with g points slump, Indus
trial Alcohol, a real war stock, 9%4 !;
Crucible Steel. s; Butte and Superior
Copper. sA Utah Copper, 4 points, and
PAPER. 4 points.
Buying Causes Recoveries.
Although the market continued fe-
verish. the opening prices proved to be
about the low of the initial hour. buy
ing causing recoveries extending in
Steel common to 1862 and gains of 2
to 5 points elsewhere.
Before the noon hour the whole list
was again in a dangerously weak
spell. Steel common made its low for
the morning at 192h.. and everything
else again started on the down grade
seeking levels.
During the first two hours of the
session 100000 shares of stock was
sold. but also purchased, indicating
faith of many. a volume of activity
that Wall street has rarely If ever
known.
The tickers were frequently practi-
cally distanced and private wires We're
crowded keeping commission houses
posted to the minute.
Frequently SO per cent margins were
exacted on the stocks that indicated
the greatest irregularity.
For time the rails acted fairly well
and then they, too, Joined in the weak
ness.
Reading old reliable. turned sick
and slumped from 191h to 101 Il ::
Southern Railway fell back . points;
Steel extended its Joss to I points; At
lantic. Gulf and West Indies to 20
points, and the entire list was decided
ly sick.
Union Pacific. despite it's extra divi-
dend of . per cent, lost , points and
other rails fell abruptly
Steel Low 1O1 g.
steel common made a new low in the
second hour Of the afternoon, when it
touched 101 q, and the recovery during
that hour was fractional
American Locomotive extended its
loss to points, Crucible Steel to 9
points, Industrial Alcohol to 13k, Cen
trail Leather to 8, Baldwin to points,
Republic Iron and Steel to practically
81, Lackawanna Steel to TN. while
Reading touched par, a loss of Gas
Unioa Pacific. 144la. a loss of "A
points; Rock Island. "a. loss of 3 X
while other rails suffered proportionate
declines.
The motor shares were shaken out COM
pletely in the afternoon. Studebake er,
which was tn. strongest stock on the list
in the morning holocau aust, broke to i06. a
seven-point drop. and Maxwell Motors.
common. sluInped TO 45l2, as compared
with closing yesterday of 5S.
These declines, in addition to previous
recessions of 20 to 40 points since the
broaching Of peace by the German chan
celor, have removed all Christmas joy
from life on Wall street--for traders on
the long side; for carriers of stacks al
higher levels.
Closing Weak, Active.
With the final hour came another
wave of liquidation, Steel common be-
ing low, near the close, at 1907, with
the ticker far behind the market.
Declines were extended to an aver
age of to 10 points. with the motors
in an awful slump. Sales for four
hours to 2 o'clock were 2.22s. 900 shares
Estimates placed the total sales at
100000 shares. not exceeded since the
Northern Pacific corner Of 1901, when
there were two 1000, ,000-share days.
HIGHER PAY FOR DISTRICT
WORKERS BEFORE HOUSE
At the end OF the reading OF the Dis
trict bill this afternoon Representative
Page offered an amendment providing
for q horizontal raise for the next fiscal
year for all District employees excep,
those in the schools. police department
fire department and employees to whom