Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-09-27
STOCK LIST WEAK,
|NDUSTR|ALS SOFT.
Firm Opening Followed by
Bear Pressure Exerted
Against Entire Market.
BY STUART p. WEST.

NEW YORK, September 81 (Spe-
ciaD Maintaining the record which
has been unbroken all through the
summer, Wall street had another
weak Monday market today. That
is, there was further very consider
able weakness in the greater part
of the Industrial division. Low
priced rails not only resisted the
downward tendency, but in a number
of instances made new high prices.
The Mexican oils, especially Mexi-
can Petroleum. continued their re-
covery at the outset of the day, but
later had to yield. Retail Stores and
the American Tobaccos gave the best
account of any of the industrials,
thereby supporting the contention
that on account of their exceptionally
earnings position they are entitled
to a rating by themselves.
The market had little that was
new over the week end to influence
it, Certainly there was no cause lot
complaint in the Saturday bank state
ment, even although it was per-
fettly well realized that these ex-
aggerated the situation at New YORK.
Call money was again bountifully sup
Piled at per cent, and this was en-
tirely satisfactory, prevailing as II olo
at the height of the crop-movlng straln.
More important testimony had been
given over Sunday regarding the I'M
provement in the credit situation;
this was no longer considered as
factor in the calculations of the spec
ulative community.
Matter of Price Cutting.
It was again wholly a question OF
the price-cutting movement ana OF
the extent to which 1t had been dis
counted in the current level of stock
have no business readjustment to un-
dergo stood up relatively well. The
tobaccos, as already noticed, fur
nished one point Of resistance: The
equipments, which stand to benent
from lower steel prices, went down
motive. decidedly less than the aver
age.
Selling converged first of all upon
the Independent steel shares because
the independents are the ones which
will have to do the price cutting If 1t
comes in the steel trade. United
States Steel common could not very
we'll resist so severe a pressure upon
stocks belonging to it's same group.
but it was everywhere acknowledged
that the steel corporation will have
little in the way of price revision to
the motor accessory stocks were the
most heavily sold. Many of these
stocks went through their previous
low points of the year.
While it is hard to see any logic
for the selling of food stocks and no
hols, these two groups nevertheless
were successfully raided
Feeble Rally in Afternoon.
Some covering of the Industrial
shares occurred in the late afternoon,
but the accompanying rally was for
the most part a feeble one. The
great strength of the low-priced rails
was consistently maintained in the
face of all that the professionals
could say as to the possibility OF
their being overbought. The leaders
Francisco. which for the previous
week or so had got rather out of line.
Southern Railway common, st. Louis
Southwestern, Kansas City Southern,
Western Pacific and the Missouri
Pacifics. Thought was taken of the
accumu,ative dividend on Missouri
Pacific preferred; still rather curious
ly this did not have any deterrent
effect upon Missouri Pacific common,
which got up across 80 in the last
hour.
More Price Cutting Expected.
More price cutting is expected. and
especially is interest keen regarding
prospective cuts in steel schedules.
Until these reductions are an
nounced the industrial section is
bound to continue unsettled. There
is much unreason about the pessi-
mism in this quarter, because it in
cludes, as it did today. stocks of COM
panies which have no particular
marking down of the commodities to
do.
But it is inevitable in a bear market
like the present industrial market
that there should be the same lack of
discrimination that there is in the
later stages of a great bull movement
Railway bonds were equally strong
with the corresponding stocks. The
idea that the recent buying of the lat
ter has been anything else but real
accumulation is scarcely sustained
any longer. even by the most skep-