New-York tribune., 1920-04-29
Stock Prices Go
Lower Again as
Selling Continues
Market Affected by Move to
Reopen Suit Against U. S.
Steel and Fresh Rise in
Money

Stocks were subjected to selling
pressure for the greater part of the
session yesterday. Offerings for the
professional bear account were so per-
sistent that they produced consider
able unsettlement, which led to scat
tered liquidation of long accounts. The
bears were emboldencd in their de-
pressing tactics by the lack of resist
ance offered by the market. Although
a slight rally at the close resulted in
partial recoveries, most all of the lead
ing issues showed fairly large net
losses at the end. At the low levels,
touched shortly after midday, not
few industrials were near the prices
reached on last weeks severe slump.
Rising rates for call money, which went
to 10 per cent at one stage, served to
encourage operations for the decline
and discourage buying. 4
The backwardness Of Steel common
acted as drag upon the whole market.
Any favorable effect the excellent quar-
terly earning statement of the corpo-
ration may have had upon speculative
sentiment appeared to be more than
offset by the unexpected announcement
from Washington of the fling of pc
tition on behalf of the Department Of
Justice for rehearing Of the anti
trust suit against the company. which
was decided in favor Of the defendant
coming at time when the market ap-
peared to be still suffering from the
effects of its recent upset. was natur-
ally disturbing and supplied the bear
traders with new argument for sell
ing. The move on the part Of the gov
ernment sugge.ts a possibility of the
reopening of the whole suit, which Wall
l.~1
history.
Certain elements in the Street pro-
fessed disappointment over the failure
OF the Steel Corporation directors to
declare at their quarterly meeting on
Tuesday an extra disbursement on the
common shares. AS matter of fact,
few persons looked for such a declara-
tion at this time. The policy of the
corporation with regard to dividends
has always been one of extreme con-
servatism and there is no reason to
believe there has been any change in
this respect Moreover, the head of
the corporation made it plain only
few days ago that extra cash disburse-
ments were not to be expected, when
new capital is so scarce and costly
The spectators who were instrumental
IN putting out reports of an impending
extra disbursement for stock market
purposes no doubt were aligned upon
the short side yesterday. Steel com
mon sold as high as 71s in the fore
noon, but yielded to 95A on the early
afternoon selling. 1t closed at Sc, off
nearly points net.
Among the weakest industrials we're
Baldwin Locomotive, General Motors,
Crucible Steel, American Woolen and
Mexican Petroleum. Professional ef-
forts for a time seemed to be con-
centrated upon Baldwin, which was
driven below last weeks low. 1t re-
gained part of the ground lost at the
close, however. Reading stood out
prominently as a firm feature when
the rest of the market was declining.
Effects of the railroad strike are
beginning to be felt in the steel in
dustry. Trade reports Yesterday told
of the closing down of many large
industrial plants, which are big con-
tion tie-up. Motor manufacturing con-
Germs in the Detroit and Chicago dis
tricts are in particularly unfavorable
positions, while 10000 men are said
to be out of work in the Youngstown
steel district. The freezing" of credit
because of the inability Of manufac-
turers to make deliveries continues
to add to the burden of the banks.
further striking rise occurred in
sterling exchange rates yesterday,
which touched s3.S7A for sight drafts,
Exchange bankers say the market is
thin both ways, being swayed easily
by comparatively light transactions.
London advices confirmed reports of
an impending resumption of gold i'm
ports from England.