New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-07-15
Stock Market
Quiet; Prices
Yield Further
Sentiment Still Depressed by
Industrial Trend; Lacka-
wanna Steel Earnings Are
Up; Decline i'm Sterling

Stocks were plainly suffering again
yesterday from aA combination of de-
pressing influences which discouraged
bullish initiative and aided the short
sellers. Chief of the adverse factors
were the persistent and apparently
we'll founded reports Of industrial
contraction forced by the demoraliza-
ton of transportation facilities. Be-
sides this the deadlock at the Spa con-
ference and the pronounced weakness
in sterling exchange added to the
weight of unfavorable items.
A few stocks stood up against the
current, but generally speaking the
market lost ground on all sides, with
motor and tire shares appearing to be
under the greatest amount of pressure.
things entirely to their liking and. rs
happened on Tuesday, most of the SELL
ing came from this quarter. The mar
ket contracted further, dealings fall
ing off to approximately half mill
ion shares.
Weekly reviews of the iron and
steel trade emphasized the extremely
difficult conditions under which the in
dustry is operating. 1t appears that in
the Pittsburgh district. the heart of
the industry, additional steel making
and finishing units have had to sus-
pend activity by reason of fuel short
age. Meanwhile fuel prices are soar
ing as the steel mills are bidding for
costs have mounted with great rapid
ity. While there may be tendency to
exaggerate the situation, nevertheless
the position of the industry is far
from satisfactory and if long con-
tinued cannot help but cut heavily into
earnings.
The report Of the Lackawanna Steel
Company for the second quarter of
the year was of more than usual in
terest by reason of current conditions
in the trade. 1t disclosed remark
able recovery in earnings in the three
months ended June 80, showing
profits. after charges and war taxes,
of $1,8S1,9 46, compared with deficit
quarter. Untitled orders on the COM
pany's books rose from 122,399 tons to
484,267 tons in the three months. In
the first quarter the company was still
suffering from the after effects of the
steel and coal strikes of late 1919. In
the second quarter covered in the re-
port just issued the company appar-
emily had not begun to feel the effect
CT the transportation blockade seri-
ously; at least, the earnings statement
does not reflect it.
Lackawanna Steel stock made quite
vigorous response to the publication
of the earnings statement, rising more
than points net and holding half of
the gain to the close. Other steels
hardened but little more. The sudden
group came in for much comment
Bear traders based selling operations
in these shares on reports from the
center of the industry to the effect
that production of tires has been over
done and unemployment is rapidly in
creasing. Moreover, rumors were anoat
limiting Of an impending cut in prices
of motor cars as well as tires. So far
as their application to the motor car
industry went such rumors did not
square with the facts, since a number
of companies have only within the
course of the last fortnight marked up
prices sharply and announced that out
put had been sold for many months
ahead. The position of the tire in
dustry, however, is not so favorable,
according to advices from Ohio.
Oil shares acted better than any
other of the speculative stocks, and
1nvincible Oil, which has been under
accumulation for week, advanceI into
new high ground. This stock was the
market leader in point of activity, dis
placing all the other popular favorites.
The Mexican oils held up we'll and
the Street expected an official an
nouncement shortly on the Mexican
Petroleum's new development work.
Call money remained at per cent
all day, with renewals at that level.
The break of 3 cents in sterling ex-
change occurred in q thin market.