New-York tribune., 1920-12-12
Stocks Decline
UndcrRenewcd
Heavy Selling g
Adverse Dividend Develop.
ments Factor in Unsettle-
ment; Rails Fail Go Re.
sist Pressure This Time

with sentiment generally unsettled
as result Of adverse dividend devel-
opments and other unfavorable innu-
ehces, rail and industrial shares suf-
1eFed yesterday in vigorous selling
movement at the exchange, resulting
IN substantial net losses all alonp the
line. While the Industrial stocks were
relatively as weak as the rails, the set
back sustained by the latter group was
more striking and occasioned more
comment, in view of the better resist
ance offered to selling pressure by this
group IN the recent past.
The average price of twenty railroad
stocks used in compiling The Tribunes
tables stood at 62.70 sat the close.
against closing Of 64.05 on Friday
and an average of 66.70 q week ago.
When the rails had their rise of sew
eral weeks ago the average of the
twenty representative issues touched
1880. The average price of thirty
leading industrial stocks closed yes
terday at 1898, compared with 74.l7 on
Friday and 77.60 at the close Of week
ago. At yesterdays level the indus
trial average was less than a point
above the low Of the year, 1908.
Selling of the rail shares yesterday
was probably induced to some extent
by the effect on sentiment of the de-
ferrIng of the Boston & Maine pre-
ferred dividend and the decision of the
Court of Appeals holding that the New
York Central must restore it's pre-war
passenger rate of two cents q mile be-
tween Albany and Buffalo. The Boston
q Maine dividend news came out Fri
day, but its full Importance as re-
minder of the unfavorable condition Of
the New England roads apparently did
not strike home until yeste rday. New
Haven was one Of the weakest of the
rail groups, but there were numerous
other spots lacking support, including
old line dividend paying rails. The
rate decision with regard to the New
York Central brings up again the
question of the power Of the Inter-
state Commerce Commission to regu-
late intrastate rail traffic The court
In reviewing the case held that the
law enacted by Congress preceding the
release of the roads from Federal con-
troll does not impair the right Of the
state to enforce the franchise provision
contained in the roads charter.
The announcement by the Fisk Rub
ber Company that the directors had
decided to pass the common stock divi
position of many important industrial
companies which have suffered severe
ly from the slump in business. Further
developments of this character must be
expected and the stock market in many
cases is nticipating such adjustment.
Sugar shares made up a weak group
yesterday, with American Sugar break
l',g to new low for the year follow
ing publication of The news that the
company has ordered reduction in
wages in its Northern refining plants.
The company recently omitted the ex-
ira dividend it had been paying on
its common stock as a result of heavy
losses sustained when the sugar mar
ket went into decl,ne. Mexican Pc
troleum, a strong stock earlier In the
week, lost considerable ground while
numerous specialties were under pres
sure from the opening on. Steel COM
mon, after selling at S0A early in the
where it showed small fractional
loss.
In the commodity markets cotton
displayed an easier tendency, while
grain prices closed higher. The for
eign exchanges were generally steady
The Federal Reserve Bank of New
York disclosed in its weekly state
rent an improved position as the re-
suit of increased gold holdings and q
reduction in borrowings by member
banks. The ratio Of total reserves to
deposit and Federal Reserve note liza.
hilities combined stood at the end o1
the week at 39.1 per cent against 37.e
,te week before. The New York Clear.
ing House banks showed reduction
cf approximately s10.o0o,0oo in sur.