Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-04-28
STOCK LIST AGAIN
ON DOWN GRADE
Bears Find Support Lacking,
Disappointment on Steel
Distribution.

NEW ofN ~, -NP''' - especial
The weakness which developed in tbe
stock list yesterday afternoon wac
continued shortly after the opening
today. The street doesn't like 10 uer
cent money. but il was further warn
Cd that conditions are not to the lik
inc Of con serva,ive men by the actior
cteeI corporation IN declaring rern-
lar Quarterly dividend. giving share
ho,ders not more than one-third ~
mo amount earned on the shares for
the first quarter of the year.
This action, while expected by lead
ing financiers. was not pleasant 10
the group OF traders VINO have been
looking for something extra. along
tho line Of stock dividends, and has
uncuestionablv been effective in caus-
ING something of damper on the
market.
After the remarks by Chairman
Cary on conservatism there was
small reason to believe that the di
rectors would adopt any more lib
eral policy. and they have but fol-
loved his lead in thus expressing
their opinions through their action.
public Judgment on the money sit
nation has heen in error There are
No evidences of ease: on the con
trary the gold reported as coming
from England is badly needed The
Federal Reserve Board has approved
Of 4 sliding scale OF discounts in
augurated by the Reserve Bank OF
Kansas City. and TINS MI probably
he followed by similar action by
other federal reserve banks
Money opened this morning at s
per cent.
Not So BullIsh on Reading.
rulings in the Reading case are Iii
gested the harder seems the task Of
compliance, which may require a
period of wears to accomplish and
may involve large amount Of
financing, which may be difficult to
accomplish in times like the present
A most interesting question is
whether there will have to be such
a definite divorce of owners Of the
Segregated units as there was in
the separation of the Southern Pacific
from the Union Pacific organizatio
Wall street, too. is wondering II there
is to be a railroad melon after the
manner OF the industrial cuttings. at
traction being diverted to Reading
and Southern PACING, the latter be
cause of it's oil and lumber equities
and to Union Pacific because Of its
$3.50. 600, 900 outside investments
Some gossips suggest that after
South American demands Tor gold are
satisfied Japan will be after share
of the millions scheduled for the
United States. the bears advancing
this theory as an aid 20 their habit
of selling stock on rallies.
Considering Tax Proposition.
The street is giving much consider
alton to the proposed retroactive tax
proposition, and the view is expressed
that the measure is so radical that IL
cannot be adopted Many Blankets and
LAWYERS are Of the opinion thIt the
tax could not be made retroactive.
while admitting that IL the same re-
suits were attempted by other
methods il would make heavy i'm
post on the present capital Of large
corporations and be most discour-
aging and disturbing in its effect.
Trend to Lower Levels.
The trend during the morning was
almost steadily to lower levels. with
a slightly better feeling along toward
noon. which was completely lost as
the steels. equipments. oils and motors
found new low levels. Shippings,
feathers and sugars joined the bear
movement almost Immediately. while
the failure to give something extra
on Steel common seemed to be a real
bear influence.
Car FOunuFy OeCllneu rs, american
Locomotive a point. Baldwin Locomo-
tive at the full loss. points; Bethle-
hem Steel 2h. Crucible Steel points
after an early rise Of I points. Repub-
lie Steel nearly points: United States
Steel. despite the good statement,
started with a drop of lh on sale
of 1000 shares and declined to 95s4
a loss of IN points; Replogle held
fairly Arm with Vanadium OF *
points.
General Motors on 10 Points.
General Motors at 2s6 was off Is
points, with faint rally Studebaker
lost over 4 points and Stromberg Car
buretor a point
Declines of points were sustained
in Central Leather. Marine preferred
American Sugar and some minor shares.
Mexican Petroleum dropped ) points
Pan-American Petroleum III. Royal