The Washington herald., 1920-05-25
WEAK TONE TO
STOCK MARKET
Some Support Noted IN Few
Specialties, but General
Trend Is Downward.
GASOLINE A FACTOR
Talk Of Restricting Sales
Detrimental to Pleasure
Car Stocks.

New York, May 24.-Today's pro-
csedings in the stock market, while
showing some little signs of sup
port in a few specIaltfes. together
with heavy buying of Steel common
on the part Of Shearson. Hammili
4 Co, generally known to work for
certain inside Steel interests, con-
anued to reflect existing underlying
conditions. not only in stock specu-
lative circles but in every branch
Of speculation in the country.
Spectators working for higher
prices with a view of turning over
their holdings at a profit cannot
operate successfully without cash.
Money is their mainstay. and with
out IL they are lost That to a
at the present time. Money is tight.
For the absolute essential there is
but little. and for speculation none.
Until this condition of affairs is
changed little can be hoped for on
the long side of the stock market.
Another BearIsh Argument.
For one generally we'll informed.
IL is learned that 10 will not be =
great while before there will be a
tightening up in gasoline supplies.
This individual is of the opinian-
and it may be mentioned that his
information comes directly from
headquarters at 26 Broadway-that
before the middle of August there
will be forced restrictions which
will cut down the operation of
pleasure cars, and possibly elimi-
nate their operation entirely. unless
for absolutely essential purposes. He
believes that the continued advance
in the price of gasoline of late is
Indicative of diminished supplies.
and foreshadows drastic measures
in the not distant future.
what of the Pleasure Car stoekss
II the above statement can be
taken as a fact, manufacturers of
automobiles exclusively for pleasure
purposes would seem to have a lot
to think about at the present mo-
ment- 1t should be taken into con-
sideration that practically only one
third of the enormous orders book
ed for this year have as yet been
delivered. and it is only natural
to assume that should the gas ques-
tion become acute cancellations on
a wholesale scale will result. 1t is
tie stocks of these companies that
should be closely watched.
Chandler.
Chandler Motor has been one of
the weakest members on the Stock
Txchange list of late. Chandler is
strictly a pleasure proposition. and
for this reason II Is said that the
shorts have recently been putting
out heavy commitments. in the is
sue The company's president re-
Gently gave out a bullish statement
the gist of which was that the stock
had been placed on a 10 per cent
basis. and that this rate could rea-
sonably be expected to obtain from
the company's earnings for some
time to come. But when conditions
are analysed the 10 per cent divi-
dend wosSld seem far from warrant
Ing ChafdIer selling at its present
quotation. A purely speculative
stock. sering on an s per cent basis.
with the cream of its intrinsic value
SKINNED of by the declaration OF
an erorDous stock dividend. would
not seen the best attraction on the
buying side of the market should
cancellations Of orders set in.
Studebaker.
Will Studebaker has already
been hammered to a pulp. there are
those who still believe that the
shorts will continue to lombard the
issue successfully. Similar to Chan
dler. Studebaker is 4 pleasure-car
stock. and likewise has weakened it.
self by the declaration of a large
stock dividend Studebaker's de-
cline. however. has already been
more pronounced. and this seems to
be the only thing in its favor Its
market value has faded to the ex-
tent Of some 40 points without the
least support. and it would seem
time that its sponsors would make
some effort TO overcome some of the
weII-deserved criticism from those
who so foolishly swallowed the bait
by committing themselves heavily
to the long side Of the issue at much
higher quotations. II this support
does not make its appearance
shortly there Is no telling just how