Evening star., 1920-04-01

,
trading, buying o. selling the stock
Cf the corporation named either OF
or OF from the floor of the exchange.
That did not hinder a number of Gus
toners from making efforts TO lioul-
! ate their holdings. as Il is practically
J certain that the stock will drop very
sharply once existing conditions are
ende0. as witness the smashing OF
prices for Northern Pacific from s1,o0"
share down. years ago. in the cul-
mination OF the Hartman Hill-Mor-
gan fight for control
The statement IL made that the gov
ernors found that; they hadSSound
that a controlling interest in the COM
pany had actual certificates and con-
| tracts exceeding the outstanding
capital stock" meaning that a corner
had been uncovered.
Big Steel Man short.
Back of the affair is said to be the
large interests. which resulted in one
| throwing block of 10000 shares OF
Stutz short on the market around 12s
a share. borrowing the stock.
A private settlement attempted at
200 is said to have increased the bit
parties, one of whom is said to be one
of the most prominent steel makers
and officials in the country
Between March i and yesterday the
stock advanced from around 123 to 800
a share. which on a 10000 share trans
action would mean a loss of nearly
So. .0e0. 900.
Further attempts at settlement only
widened the difference. with every
promise Of continued advancing trend
when the governors tapped the bell.
1t would look now as IL the case
might drift into the courts. as there
is nothing like 10000 shares availa-
BILE. except from the controlling In
terest. which is opposed to Q ~et-
tlement." .-.
Some of the curb houses this morn
ing were making bids for the stock
Of the Stutz Motor Company around
$40 and $50. while small offerings
were reported at 42o to AS.
Practically a Moratorium.
The action of the governors Of the
exchange was equal to declaration
of a moratorium on the stock. Mem
bers of the exchange can neither buy
nor seil-indeed, they even hesitate to
give any information regarding the
situation. No deliveries on contracts
can be made nor demanded.
a big short interest, claiming that
they had found mo concentrated in
terest on the short side. and that the
largest short trade was for 400 shares;
five shares and are scattered all over
the country and totaled 10000 shares"
Still the report of the big short is
persistently reiterated. with the name
frequently Whispered out loud.
Allan A. Ryan and his associates are
mentioned openly as on the hong or
buying side of the practical corner.
nor would Mr.. Ryan or any OF his as
sociates make any statement today.
May Have Some Bssis.
1t is claimed by friends Of the firm
OF A. A. Ryan Co. that there is
something to be said in favor of the
stock and some good reason for the
the purchase of the company by the
General Motors Corporation as a pos
sible contingency.
The stock will be ex-dividend Mon
day. stock dividend equal to $7s.25 a
share. based on the closing price Of
yesterday. The shorts will have 10
make this amount to pay These con
tracts will not be coflectible through
the stock exchange, under present rul-
ing.
The action OF the governors OF the
New York exchange is said to be with
out precedent.
Local Securities.
1t was plainly evident that in
veStors were reinvesting, in a sma ~
way, part of the April disbursements
from local corporations. While only
$4,000 par value of bonds were traded
in and but lis shares of stock, the
transactions were much more nu-
merous than the total would seem
to indicate, practically all business
being of the odd-lot variety.
Capital Traction shares opened at
S73s and closed at IS: Railway pre-
ferred sold to 81; Washington Gas
was taken rather freely at 45k; Mer-
genthaier sold at 1341s and then at
135k, while Lanston figured in the
sales at 50.
washington Gas SIS were quoted ct
S6% and 81.
Foreign Exchange Higher. b.
The pound sterling advanced this
morning to asa. the franc to .Oss. the
mark to .ol6. while the lira was quot
The regional federal reserve bank
OF Richmond purchased s5.9S1.50o OF
the Treasury certificates, bearing 40
per cent interest. maturing one year
Total allotment, S201,370,5oo.
Governors of the New York Stock
Exchange have voted to adjourn from
the close of business this afternoon
over until Monday morning. tomor-
row being Good Friday and the extra
days release from business needed
by the overworked brokers and their
clerks.
One Transaction reported ON the
New York market yesterday was Of
$lo.000.0o0 AZ per cent liberty bonds
of the third loan at S2.ss. The trans
action was unusual and has caused
considerable comment.
Credit Situation Helped.
The National City Banks April let
ter has this to say:
The whole credit situation was
helped very much sentimentally by
the announcement that the British
and French government would pay the
$5oO.000,000 joint loan which will be-
come due in October next. 1t was a
moral tonic which had immediate ef-
fects. Proof that these countries were
not bankrupt was hardly necessary.
but sentiment In the exchange and in .
vestment markets had been despond-
ent to q degree that required a cheer
ful surprise OF this kind to dispel the
prevailing pessimism. The announce
ment had that effect for several rea-
sons. the most influential of which
perhaps. was the promise that a con
siderable amount OF gold would be
which would serve to re-
pienish our reserves and make good
the losses which we have seemed des-
tined to suffer by expectation to Ar
gentina and Asia.
nerves about March i, and We discussed
I at some length In the March letter.
The excess Of gold exports over imports
N January was e35, ,740.4S7. and in Feb
-uary 33e.627.oo0. a total since Janu-
ary ! Of $7<,267,4S7. and the margin OF
excess reserves in the federal reserve
system was SO narrow as to arouse mis-
sivings that more drastic action might
De taken by the authorities for the re-
luction of loans. The announcement
that the loan would be paid, together
With a rumor that gold shipments would
begin at an early day, instantly relaxed
he tension. At about the same time, the
iemend for gold on account Of India