Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1920-04-28
STOCKS SUFFER SEVERE
BREAK IN WALL Street
Steel Fails to Declare Paper Divi-
notwithstanding FluctuatcS
md Sterling Drops.
ny nnoADAN WALL.

NEW YORK. April 27.-Stocks had
n severe, break in Wall Street this
in view OF the coniiscHtory tax
measure introduced in Congress. and
the disappointment over stock dixi-
dcnd on United states Steel. The
market was in technical shape for
n, reaction anyhow. having advanced
fharniy in ssveIHi Special;ies and in
Gold was Withdrawn for export 10
South America. call money went to
10 per cent. and sterling to new
37a3-4 Nearly 100 American citizens
left Mexico in fear OF their lives.
Early in, the day the market was
Baldwin and General Motors. The
oil stocks and American Wooden and
the Ryan Specialties moved upward
i:iprcssively But it was observed
that stocks were being offered as
freely as they could be unloaded
without breaking prices: This sell
ing movement increased In volume as
the day advanced. and in the after
noon business was heavy and excited.
The close was al about the low prices
in most issues with very material net
losses in the leaders.
Reading Fiuctnntcs.
Reading very naturally attracted
most attcnt!on 1t WAS SLOW III Se;-
t:ms started. but iinaly ana advance
ABOUT lwU points. Liquidation III tnat
ana IN me .icadinls bonus was neavy.
neiorr the day ended Reading had
broken more tnan POINTS from MS
msn nsu1e OF the mosainE' Careini
Iact that iheic need IN Ice COM
pete dissolution OF the company. All
II need DO is dispose 81 It's coal prop
cries. Jersc< CuLtrai must do the
same. This Ennis the size OF the
melon expected. out apparently. con
nrms the Reading company in its
possession OF the, Jersey Central. New
iork Central and Baltimore and Ohio
as owners OF Reading stock gained
IN the morning. but sold on III the
afternoon with the rest of the mar
kct.
The credit situation probably had
more 10 ~ with the break IN the
market than any other one thing.
The banking situation for the cUun-
try as whole - not so good as II
was last week even though the local
banks are stronger. Merchants are
compelled by the strike and by the
iabor SITUATION TO carry larger STOCKS
oi goods and at higner prices. thus
lying uD greater amounts OF money
IMAM normal. 1hc introduction OF the
bill III Congress taxing surplus pro-
hts So per cent would mean receiver
snip for thousands OF concerns and
individuals now considered solvent.
to.sld Not Rinse Money.
They could not raise the money
for inns tax because they have tied ii
up IN extensions Of business. in ma
cninery, spent IL Tor advertising or
have consumed II in some other way.
1nere is no question. however. that
such law would be constitutional
ConEress that the business world is
really afraid that the measure may
be passed. II passed there is no
question that ii would precipitatc "A
Violent commercial panic and cause
loss OF billions OF dollars TO the
counsry. For This reason large
percentage of touay's selling was
genuine nGuiuat:on.
Tho steel N plrnincS
emincntly satisfactory showing a net
Tor the hrst Quarter OF $4:,uS9.Uls
and surplus Of sl3.313.csi COMPARED
with sa3,5ia,3si net and surplus OF
si'ss2al6 in the first quarter last
year. some very important men
nave been talking recently of a stock
ure 10 declare one made the meeting
o: the directors Il disappointment
There was good liquidation of steel
American WOODEN Report.
The American Wooden report was
so made up as TO show s39.sv "A share
earned on the common stock COM
This is after reserve Tor taxes: the
amount of which is not given. II is
understood. however. that before
over S3O,VVo.oOu or more than 100 per
cent. The company restored TO sur
Plus Sli'aOo.oop. which had been set
reserve OF s7,e5C,Ooo for possible
ammunition % inventory values
AS result Of these transactions
the prom, and loss surplus Of the
t91nipaay Tor the year is. increased
mon stock OUTSTANDING. These large
prohts led Wall Street 10 fear Thar
congress might notice the report and
ne ,iohded 10y 1t into some freak
legislation. so II hurt The market
Sterling Weak All Day.
ABOUT the -
made OF the withdrawal OF $4,000
.ehp gold tor shipment 10 south Amer
ica rGlnor gained currency that I'M
ports from London wonld be re-
su'nec and that $I0.c00, 900 would
come Ihis h;-s. not been conaralcd
WneH IN" u!ArkGt ci0sCd. Sterling
was weak All DAY Al It's loves;
noint IT represented a decline Of
- IL points from the high level .s
tab!isheI/ on April -
oihcial denial was issued by the
Bri'iSh government that II vas seek
IN, me, fonlrD! Of the Shell Transports
Tners IS u" .doub, that liquidation
OF al Kinds OF stocks is p-oyrcssintr