The New York herald., 1920-01-13
News and Gossip
of
Wall Street
SUPPORT OF UNITED STATES STEEL.


/ United States Steel common was sup
ported by important banking interests
yesterday. Brokers who usually act for
these bankers bought 10000 shares OF Steel
Ion the opening and continued To support
the stock during the day. The announce
ment of the price at which the Steel Cor
poration will allot the stock TO subscribing
employees for the current year probably
will be made today. II is surmieed that
recent support has been due to purchases
lof stock for that purpose. The fact that
UNITED States Steel held well was cited as
evidence that the market would not break.
1 But this argument would appear to be
faHacious because the large public hold
ings are not in Steel common, but in oils
ana motor stocks. These are the stocks
which must be watched for the trend OF
the market.
MIR. GLASS VIEWS OF TAXES.
The street was confused by Secretary
Glass most recent comments on the mat
teer of tax reduction. Mr.. Glass urged a
lowering of surtaxes in his annual re-
port, but he now apparently comes out
with an argument against changes in the
taxes, with the assertion that another
Liberty loan would become necessary II
taxes were reduced. There appears to be
la contradiction in his credited statements.
The story in the street has been that Con-
gross would reduce surtaxes and excess
profits taxes this year. Bankers believe
that these taxes must be cut, even IL II
would involve an advance in the normal
income tax, If the investment market is
to be restored to it's former usefulness
Under existing laws dltferential exists
lin favor OF tax exempt bonds, which IN
iduces wealthy men TO buy them at the eN-
pense OF taxable bonds, to the great detri-
ment of the latter.
ROADS NEED OF LOCOMOTIVES.
| When the railroads are returned to pri-
Ivate ownership and control the COM
lpanies will be in the market for at least
| /. 500 locomotives, according TO statement
made yesterday by an official OF one oil
the large locomotive corporations That
number of engines is valued at approx
mately $50, 900. Other officials believe
the number will be more than double that
figure. Locomotive and equipment COM
lpanies already have received a large
number Of orders for delivery after the
roads are relinquished by the government
The orders have been placed by com
panies who anticipate big buying move
ment from abroad when credits are es-
ltablished.
BREAK IN OIL STOCKS.
While the popular explanation OF the
break in oil stocks was the news OF a fresh
learthuuake in Mexico, with rumored pos
Isiblities that oil properties had been dam
aged, the fundamental reasons for the
break were the oVercapitalizaton of the
oil business and the amount Of oil stock
lundigested. The Texas Company has just
issued si0.000000 OF new stock. The Pan
American Petroleum Company also re-
Gently issued a large amount of 'B
shares, for part of which the underwriters
were compelled TO go to England in search
of market, although the British are dis
tributing their oil stocks here. Countless
new promotions. some OF magnitude. have
been loated. Almost everyone has oil
stocks, with the result that the market
for oils is saturated and sensitive to offer
nSs. more immediate cause of the de-
cline yesterday was the statement in The
Lamp, official publication of the Standard
ION Company of New Jersey, that the
Texas oil fields are overdrillod. This has
resulted in lessening the pressure of the
oil flow. Wells which once were gushers
now have comparatively low production
because there are too many new wells.
MONEY SITUATION.
While calling attention to the hullish
business outlook, Messrs Block. Maloney
Co. say that the money market cannot
be ignored as the decisive influence at
present. In their morning letter, issued
oeIore the opening yesterday, they said
1T never has been possible to bull stocks
with bank deficit. At the time of the
last deficit stocks sold off because banks
teit the need of reducing their loans. and
they did do this. The Federal Reserve
warning about reducing non-essential
loans should now be borne in mind and
practiced. In advising sales of stocks at
TINS time We believe they can be replaced
clears"