Evening star. [volume] (Washington, D.C.) 1854-1972, 1916-01-26
WALL STREET MARKET
SHOWS SEVERE LOSSES
Strong Opening on the Declaration
of the Steel Dividend, But
Heavy Pressure Follows.
Early Gains Are Wiped out-For-
eign Liquidation and Labor Trou-
bles Are Dominating Influences.

actually surprise to Wall street, the
declaration of a dividend on the old
basis on the common stock of the Steel
Corporation was a great relief to the
street, Indicating, as it was considered
to do. the belief of the conservative Of
ficials of the great corporation that
business would be good for months to
come. and that it would not be neces-
sary in the near future to again stop
the distribution to the common share
holders
That this view of the action was gen.
orally taken on the street was evil
denced by the rush to buy stock at the
opening, when an advance of l !: points
marked the sales at Sc.
All through the list advances attend
ed the opening, but not as marked, and
then came the turn in the other direc-
ton.
Steel Supporting Factor.
Securities have arrived in large
amounts from London in the last two
days. Mondays or Tuesdays market
would not absorb without a serious re-
cession. and they were held back. but
unloaded freely on the opening this
morning. the Steel dividend giving the
necessary tone to permit of much SELL
ing.
worry about even in times of pros
perity. and now it's the demands of labor,
usually an incident of increasing
revenues.
street that the consignments of for
eign securities on the two latest
steamers were composed largely of
rail shares.
Rails Are Spiritless.
In any event. the rails. by no means
favorites with spectators. and sup
posed to be strong under excellent
earnings, refuse to start on the up
grade. and Canadian Pacific was ma
terially lower. while Reading. Union
Pacific and Lehigh Valley were par
ticularly soft.
Gains in many industrials of one to
two points were scored in the early
Crucible Steel. Maxwell Motors. Pressed
Steel Car and Mercantile Marine show
ing the best strength.
But the market followed Steel and
the investment securities very quick
ly. only a very few of the stock list
much of their advance,
although they displayed more strength
than the rails.
Heavy Slump in Prices.
AS the session advanced the weak
ness became more apparent. Bears
were out in full force. and they work.
ed with every effort to force recess
sions. being unusually successful.
1t was the old, old story Of Wall
street discounting the news of the day,
as it did the Steel dividend in the ad-
vance of IA points yesterday.
Stop orders were caught here and
there throughout the list: margins
were called heavily and the liquidation
of foreign securities went on regard
less of the trend of values.
Practically every gain on the list was
wiped out. which with additional losses
made some severe recessions.
Steel common dropped to san, IN
from the high; International Nickel
was points off. Industrial Alcohol az
points lower for the session: Baldwin
Losomotiye lost Its gain of ~ points
and fractional decline in addition.
Crucible Steel was one of the few
stocks that held any of its improve
ment. and Maxwell Motors was an
other. Mexican Petroleum lost 5A
points with a slight rally.
New York Central lost y and Cana.
dian Pacific Y points. Other rails
were fractionally lower.
Flat at the Closing.
The entire market continued to
slump. the rails suffering severely in
the last hour of the. session, while
Steel common dropped to say. net
loss Of nearly the amount of the divi-
dend declared yesterday. but which
will not be paid for sixty days, while
other industrials yielded fractionaIly
and full points to 8 points. the maxi
mum loss being on International Mic
KEEL. which broke from 2l6 to 20s.
Mexican Petroleum broke to 1907 as
compared with a closing yesterday at
1851.
Studebaker was one of the softest
stocks. breaking over 2 points to 1907.
Reading lost ~ points; Union
Pacific, -; st. Paul points, and there
was a drop of Az points on Canadian
Pacihc: 1t was the weakest closing for
several days.