Evening star., 1920-05-24
LIST AGAIN SLUMPS
UNDER LIQUIDATION
Declines Average One tc
Three Points-Bears Sat-
iSfied With Position.

NEW foRh. May -i.-lhere was
np question as to the tenor of to-
days stock market. 1t was weak
from the tap of the opening bell. and
the weakness did not appear TO be
materially aided by the bear element
There appeared TO be an absence
of any buying orders and the frs
concessions in prices brought many
stop orders into action. acceiera,in,:
the weakness
Selling of the early morning had
more the appearance OF stock CON
ing out Of strong boxes than for
some time. and sentiment seemed Z"
be largely unfavorable 20 securities
and in favor of further liquiCa' .on in
market that every one believed
thoroughly liquidated
No time money for speculative pur-
poses is available. Indeed. the bank
ers under the urge of the Federal
. Reserve Board are putting the screws
on closer.
Preparation is now being made for
June l payments and at the same
time for the very heavy Quarterly.
and semi-annual disbursements Of
July l. the latter calling for some
thing like 5000. 0o0. 900. dividend and
interest payments on rail ans: in
Gustrial securities.
Wall street doesn't like the situa-
ton with the railroads and plainly
fears another era of government COR
troll. If not ownership. 1t Is predicted
that 80 per cent advance in freight
rates without a split with employes
would put the railroads in conditio!
10 give the country good service, but
II is question whether they car
avoid the split
Advise Purchases on Reaction.
Brokers generally indulge in advice
regarding purchases only on good
breaks" and follow it up with "and
sell on advances"
Trading is narrow. 1t is patent
that the short interest is not large. or
If il is il is a self-satisfied interest,
not in the least nervous over its po-
!, sition.
Motor and oil shares, the favorites
of the speculative period. the strong
est spots in recent weakness. were
under pressure this morning, and the
declines were relatively heavy with
some buying on the declines.
For the first two hours concessions
were in order. then little stifrening
was noticed. but the reaction was
limited. and while it continued
through to the noon hour it did not
bring much increase in business and
only fractional betterment.
Rails and Industrials Alike Lower.
Both the rails and the industrials
suffered. although the former showed
better resistance than the latter.
Average declines. considering the
entire market, varied from l to 3
points. but there were recessions
throughout the list of to points.
and in the case of Crucible Steel,
which was low at lis ~, there was
loss of Z points
These losses were sufficient to have
satisfied shorts and made them take
their profits in larger bulk than evil
denced by the rally. had the bulk of
the selling been the work of bears.
this fact seeming to confirm the opin
ion that the selling was of long stock
coming out of strong boxes.
Numerous selling orders accumu-
lated over Sunday for the account of
the west. north and southwest, nor
was the incident weakness attending
the action of the market confined to
any one group-it was plainly evil
dent throughout all stocks
The Declines.
Royal Dutch broke 8 points: Royal
Shell. 1e. Texas Oil. l 12: Mexican Pc
'troleum. 5 points. Baldwin Locomo-
tive. 3I.: General Motors IS: Indus
trial Alcohol. about points; Coppers.
l TO 2: Replogle Steel. 2; Republic
Iron and Steel. "a Pressed Steel Car.
ARROW. . points. and Steel common.
points to S9ss. with recovery to 9011.
American Wooden was off 3 points
and the rails averaged l to u points
net loss.
Pennsylvania and y. Y. Central.
Both Pennsylvania and New York
Central were weak again today. the
former making new low record for
the year. There is no unfavorable
significance about this decline so far
as the financial position or the earn
ings of these companies are concerned.
II is SIMPLY a case of readjusting the
market prices of railway stocks
where they will accord in the matter
of interest return with the yield on
bonds and equipment notes.
At its low today Pennsylvania Rail-
road stock was selling on practically
an per cent basis but this is not
excessively low in comparison with
the selling price of the new per
cent Pennsylvania notes. which are
quoted on nearly a I per cent basis.
Similarly, New York Central at 66
returns Il per cent, which is not out
of proportion to the equipment notes
selling where they return Z per cent.
All the other old line dividend-pa
ing rails are. of course, in the same
position. with the exception of Union
Pacific which is rather more attrac-
five most of the ofherc