Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-06-08
!. MARKET AWA|T|kl
n. CHICAGO OUTCOME
m Nomination Puzzle and Other
IN Factors Affect the Trad
ing Today.
BY SIN ART p. WEST.

\ BY STUART p. WEST.
WALL STREET. New York. June 8.
-Today's Ysock market was indu-
enced chieGy by three considerations
convention, the fluctuations in the
money pxte and the government crop
report covering the result OF investi-
gationA UP to June !.
In the ordinary reading Of the news
dispatches it did not seem that any
thing ad happened overnight at Chi
CASIO to make the nomination puzzle any
easier Of solution But partly because
of private advices received and partly
bn general reasoning the feeling
around the street was that the chances
against any out and out radical oeing
chosen had increased.
There was accordingly a more con-
fident sentiment on the subject OF the
nominations, and while this was not
expressed in much new buying II did
make itself felt in an absence OF any
further desire TO get out of stocks for
fear Of what the convention might DO.
Higher Rate ON Standing Loans.
After the run-up In money rates at
the close last night it was a foregone
conclusion that the renewal on stand
ing loans would be raised. The fact
that il was made only Z per cent as
against the previously prevailing s
was regarded as favorable
1t also made II plain that the abrupt
bidding up of the call loan quotation
in the last kouE.yesterday from to 10
per cent was TO some extent at least
ba manipulated rise desiged to af-
feet the stock market Still the rate
on call loans today again was pretty
stiff. Retting up TO Per cent by the
middle of the Afternoon.
The stock market was dull and ex
txemely irregular. with NO general drift
in either direction. Here and there
individual stocks were strong. as the
result of special buying operations
There were also a number OF points
of Individual weakness, SO that IT was
impossible most of the time to say
what the main drift of things was.
Market Not Material DISTURBED.
Despite this great irregularity the
market stood up very we'll during the
early trading and well into the after
noon. The money rate continued to
harden. reaching 10 per cent in the
last hour. But the stock market was
offering very fair resistance to the
rise in money and probably would
have continued to do so had ii not
been for the unexpected action Of the
directors of the Chicago and North
western railroad in cutting their diyl-
d4Dd from a TO per cent basis.
The reason given for this was that.
while the government guarantees are
adequate. they did not mean cash i'm
mediately in hand and that ia view
of the unsettled financial situation il
was deemed advisable TO conserve
cash resources as much as possible.
OF course. this was the familiar ex-
cuse for a step which really had been
dictated by the very poor showing of
earnings that the company has been
making for some time. Chicago and
Northwestern was one CT the roads
on which the government lost heavily
last year. but inasmuch as the same
was true of Great Northern and
Northern Pacific these stocks shared
in the Weakness only in less degree
than the stock directly concerned.
Dresk Exceeds Ten Points.
:. Chicago and Northwestern closed
last night at 81. 1t broke over ten
points altogether before the decline
was checked Naturally 30 severe
fall in one of the old-line investment
issues had a disturbing effect npon the
entire market There was active sell
ing of all the dividend paying rails
and the low priced members Of the
group which had stood out strongly
in the forenoon also were forced to
to other parts OF the market. but even
during the unsettlemenf of the after
noon with the heavy decline In some
of the railway shares and with the 14>
per cent call money rate 4 good part
of the industrial division hela very
firm
Bad Market .Snappy.s
The latest issue of equipment
trust notes.-the $4,000. 80 q the
Southern Paeaio-weut on with th1
same snap which has characterized
nearly all Of the similar offerings of
the last month or more. 1t was an
nounced by bankers conducting the
underwriting that the Subscription
books had been closed directly after
they were opened this morning. which
meant that the entire amount had
been taken without any delay.
The general list of corporation
bonds was not at all affected by the
news of the reduction in the Chicago
Northwest dividend from to per
cent. While the stocks of all the
roads traversing the northwestern
states were very weak. the bends Of
these companies were dealt in pretty
much as II nothing had happeaed-
that is. At the same prices ~ yes4er-
day. Liberty bonds were somewhat
lower. but the decline was not i'm
Cara Activities.
Texas and Pacific Coal and Oh con-
tinued the feature, advancing more
than a point on short covering, but
reacting later. Inside orders caused
subsequent rally.
Island Oil was active, but reacted
after a substantial fractioaal gain.
Cushing continued firm on the an
nouncement that production is now
1000 barrels daily, with 4 large in
crease likely in the next few weeks
because of active work being done
in Oklahoma
White Oil held fairly well rs q re-
suit Of the statement that two new
We lis had come in
There was slightly more activity in
some Of the miscellaneous shares. An
initial semi annual dividend OF 4 per
cent was announced in Central Teresa
Sugar. Acme Coal reflected d better
movement of coal because of i'm
proved railroad facilities.