Evening star., 1920-06-09
|NDUSTR|ALS HOLD;
GOOD RAILS LOWER
Traders Look for Reduction
of Dividends on Hill Shares.
C0aIerS Soft.
BY STUART p. WEST.

NEW YORK. June 9.-While today's 8
market was for the most part very
dull and uninteresting affair it new
ertheless constituted a further quite
important test of the present Wall
street position.
Yesterday the share list had been
called upon to Withstand the point
break in Chicago and Northwestern,
one of the former gilt edged railway
investments of America. The shock
was all the greater because the cut
in the dividend had not been expect
ed. At the same time money rates
continued extremely stiff and had
there been any sensitiveness in the
speculative structure it would nave
been bound to show.
The fact that the Industrial group
of stocks as a whole showed scarcely
any decline at the close Tuesday ana
that numerous Individual issues even
ended higher was favorably comment
ed upon in the market discussion this
morning. The good feeling was in
creased by the way prices stood up
during the first hour or so today Wnen
the railway section of the market was
suffering the further logical conse-
quences of the Chicago and North
western dividend cut.
Look for Hill Roads to Follow.
and Northern Pacific are in precisely
the same position as Chicago and
Northwestern so far as earnings are
concerned a similar reduction In their
dividends was regarded as quite
likely.
Speculative prognosis indeed went
further than this and pictured the
dividends of all roads that were op-
Grated at a heavy loss under govern
ment control as being in danger.
In consequence there was not only
very urgent selling in the Hill shares.
but also in stocks like Delaware and
Hudson, Norfolk and Western. Illinois
Central and various others of the old
line dividend payers. Non-dividend
paying rails were carried off some
what but as has been the case all
along made a very much better show
ing than those on the dividend list
Market Looks Liquidated.
Today was another trial for the mar
ket in general, and the outcome was
that the impression of well liquidat-
ed condition was confirmed. There
was, of course, very little initiative
on the side of rising prices in advance
of definite news from Chicago. but the
idea was present in the minds of most
observers that prices had net broken
under succession OF very unfavor-
able developments, and that II the re-
publican nomination was in any way
satisfying from the conservative busi-
ness standpoint decided turn for
the better might well he looked for.
The stocks which gave the best ac-
count of themselves were American
Wool, the sugars. the tohaccos and
most of the equipments.
There was nothing new in the situ-
alton with any of these stocks except
perhaps that the sugars were helped
by the announcement that the Manati
Sugar stockholders had approved of
the increase in the common from
SIC, 100000 to s15.000.000 and in the
preferred from s3,5O0.0 900 to $4,000, 600.
readjustment of capitalization which
will carry valuable rights to share
holders.
The sharp upturn in American
Woolen, which crossed par in the aft
ernoon, reflected the anticipation that
the indictment against the company
in the government suit would, after
all, be quashed. Inasmuch as there
Is no stock on the list against which
SO many unfavorable things have re.
gently developed, the ability of Wool
to rebound the way 1t did was very
striking proof that adverse factors in
the situation have been very well
measured in the present price level.
The recovery in sterling continued,
around 3.a2. The Decentralization in
the silver market went on unchecked,
with bar silver in London off another
2A pence.
Crop reports, including the weekly
review by the weather bureau. were
distinctly encouraging. They indi-
Gated a considerable Improvement
over the conditions described in yes
terday's monthly summary by the
Agricultural Department.
Moreover, corn planting has been
completed on a very heavy acreage
and there is a distinct possibility that
the falling off from last years pro-
duction of wheat will be made up by
increase in the yield of corn.
The Iron Age in it's weekly survey
of the iron trade again emphasized
the difficulty Of making deliveries. but
on the other hand gave 1t as the gen
eral view that the showdown in other
lines of industry is not Affecting the
steel trade.