Evening star., 1920-03-02
STOCKS IRREGULAR,
NOT VERY ACTIVE
BY STI ART Il. WEST.

BN SGl ART i. WEST.
Special Correspondent of The star.
WALL STREET. New York. March
2.-There was no essential change in
the general surroundings Of the stock
market this morning. Some disappo!nt
ment was felt because money rates did
not relax following the completion of
the March requirements. But the
call loan rate did not get above !" per
cent. and thus imposed no greater
strain upon the speculative structure
than il had been called upon to bear on
previous days. Foreign exchange was
higher, with sterling jumping At ons
time as high as 80 and. although re
acting later, still retaining subStan-
tiai gain on the day.
There was no news in any other
quarter except the failure of the Su-
preme Court to render verdict on
the stock dividend case. the continued
postponement adding one more to the
numerous uncertainties Complicating I
the market situation.
No Fresh Inspiration.
The stock list left without any
fresh inspiration moved with StTlCt
reference to its technical position of
the moment. This position had been
temporarily weakened ~ he short
covering which had followed tnr uu-
expected Supreme Court decision IN
favor of the steel corporation ending
the long litigation against the COM
pany under the sherman law.
The short interest had heen sufficiently
reduced to warrant a renewal of specu-
lative efforts by the DuTneroGS elements
that We're beariSh on IN" n"TE~'.
were taking the ground that with credit
conditions the way they are no rally
could be more short lived. These efforts
during the first hour or 50 met with a
fair degree OF success.
steel Drops sharply.
Steel common fell away SHARPLY losing
the better part of yesterdays gain and
the rest of the steel and equipment is
sues did the same. There was special
weakness again in the feathers, in Amer
lean Wool and in the boot and .,'tra
stocks on the theory that it is com
panies of this class that are carrying
the big inventories and would be worst
hit by a period of liquidation and price
decline.
But it soon became apparent that
bear operations were not bringin
out any important offerings Of stock.
AS prices got down point TO =
points resistance stiffened. No longer
did the bear attacks carry through.
In the early afternoon the whole list
began to strengthen as numerous
points of strength developed in in
dividual stocks. The high-priced
rails-that is. the old-line standard
dividend payers-took the lead and
were followed by zine stocks and
equipments.
Brokerage Sentiment.
The most encouraging feature of
the speculative situation in the eyes
of experienced people is the great
preponderance of bearish opinion and
bearish literature. Last October. with
of the letters which went out from
Wall sire day by day We're bullish.
Now the proportion is almost exactly
reversed. There are few who are
courageous enough to recommend pur-
chase of stocks for a turn on very
weak spots. But the mdjority OF
letterwriters are advising the sale of
the market on all rallies because of
the credit tension and the constant
failure of the week end hank state
ments to reflect any Improvement.
There are admittedly no incentive
to buy with any expectation of a
quick profit of more than a point or
so. But before n market really turns
up for good after prolonged decline
ii almost invariably goes through a
dull spell. during which bear expert
ments are more or less successful
against individual stocks. but the
main characteristic of which is an in
pressure of short selling in the list as
q whole.
steel Common.
With. the. Steal Corporation free
from its long litigation more atten-
tion will be paid TO the valuation of
Steel common as an asset proposition
as distinguished from an earnings
proposition. ON this subject the Dow
Jones News Service today printed a
summary Of what has been accom-
plished during the past nine years
while the prosecution under the Sher-
man law and other litigatiC has been
in progress
The Steel Corporation during this
period earned S1.10S. .33t. 900 availa b le
Tor dividends which was the eQuiva- =
lent of S47i.70 on the preferred stock
and after preferred dividends S23S 20
share on the common.
After the payment OF common divi-
dends there was a surplus Of $75G.-
$4,000. equal to $1is.S1 a share On the
common and bel arriving al this
balance there was charged off approx
imately S1.400. .080. 900 for depreciatioa.
sinking funds and ordinary repairs.
international Paper.
international Paper earnings for
1929. it is estimated will run close
10 twice those of 1879 The earnings
last year, il is said.-are. in the neigh :
horhoOd of 50 a share. Internationa |
Paper has the print paper situation
practically Sewed up. II has an
nuunGed another jump in the price of
print paper to take effect April ]. this
time to > cents a pound This price
ia made for contract deliveries but
the spot market rules even higher
being about twice the contract price
The situation in Canada by which
that country has put an embargo on
the shipment of pulp to this. country
is said not to affect in any way the
shipments of the International Paper
hut merely prevents the shipments
from crown lands
Corn Products.
Corn products co~tinucd 10 respond
today to the highly favorable ;unlIa!
report published YESTERDAY The stock
appeared one "f the easiest 10 boil
when any buying at all came into II
Its action was entirely consistent with
the view that the main inside hold iuge
have not been distrj jbutrd ana are
awaiting higher prices. when general
market conditions re more favora b o
TIL" earnings statement indiua cd
plainly that the management has been
most conservative in its dividend policy
It il could. II il chose. easily double
. regular distribution. which is now
Al !" rate Of per cent u year bat
that il is, the extra disbursements g
bring the stock m To :: uC.' cent
basis. are very secure ana may readily
lee inc -eased if the general buSiti. -
sitIatiti as 'h.. year goes on warrants