New-York tribune., 1917-12-20

In yesterdays weak ana unsettled
market standard railroad shares
stood out conspicuously as the
centre Of attack. From the open
ing they were under pressure out
of proportion to the breadth of the
market. and issue after issue
dropped abruptly to a new low
level. not only for the year, but to
the lowest price Of record in dec
AIDES. There was no great eN-
uansion in trading, but demand was
so inordinatcly light that the in
sistent Offering Of stocks put the
market out of balance. Notable IN
the list Of stocks which found
new levels were Pennsylvania, the
premier railroad stock Of the coun-
try: Atchison, New York Central,
Southern Pacific, Union Pacihc'
Baltimore 4 Ohio and Great North
crn preferred. 1t is an interesting
fact that most Of these stocks had
shown great resistance to selling
pressure at the levels which pre-
vailed before Yesterdays break.
PENNSYLVANIA had lowered between
43 and "A for considerable period
and support had appeared whenever
it approached the lower figure.
New York Central seemed to be
"pegged" above &C, Union Pacific
at around lOG, Atchison in the
neighborhood of 70, etc. But none
of them were able to resist yester-
dav's onslaught. The source of the
selling remained enshrouded in
mystery. as it has been for months.
By some it was attributed to liqui-
dation of American securities by
the fiscal agents of the British gov
ernment. and there is at least super
fetal evidence tending to show that
this has played a part in weakening
the market. But it is stated with
some authority that such liquida-
ton has been "negligible,' and that
IL has been conducted in such a
manner that it could not have at-
fectcd the stock market to any ma
terial extent. For the most part,
it is said. the securities which have
been sold have been privately
placed with large institutions. But
even if it could be shown that such
selling had not been the important
factor I'm demoralizing the market
which it is generally supposed to be,
foreign liquidation. though Of a
different character, may have con-
tributed substantially to the recent
weakness of standard investment
stocks. and particularly to the latest
upset. Yesterday was the last day
that British subjects holding stocks
I'm this country could sell and re-
ceivc returns in time to deduct the
recorded loss i'm making up their
income tax schedules. 1t was re-
ported that there had been some
selling of this character. Probably
selling by men of wealth for the
purpose of escaping taxation under
our own law through recording
losses as offsets to profits was a
more important factor in the mar
ke.. however. One very rich man
stated frankly that he had taken a
heavy loss on one commitment for
tha, purpose, and that he knew a
Good many other rich men who had
done the same thing incidentally,
most Of them expect to repurchasc
the securities which they have sold
with this object in mind shortly
after the turn Of the year. If that
should happen, the market might
take turn for the better, espe-
ciallv in view of the fact that
January disbursements are expected
to be unusually large, and much of
the money distributed then-the
total has been estimated at $780,
OOO,OO0-will Immediately be rein
vested