The Washington herald., 1921-06-18

authorized increase as the Inter-
state Commerce Commission will
permit.
The reduction in, the crucibls
Steel quarterly dividend to / per
cent was q little more drastic than
the street had expected. The mar
ket demonstrated this fact. At the
opening the stock sold at So an
overnight loss of 81 points. Prom
shat point Il rallied to SAX but
quickly thereafter reacted close 20
the opening price. The present
market position Of Crucible steel
IL severe commentary on the
vaiue OF the payment of stock divI-
bends by companies which have no
proven earning capacity under
peace conditions
Chesapeake and Ohio stock evil
IDENTIFY did not fully reflect yester-
day the waning hope Of a dividend
following the failure Of the Hook
ing Valley directors to take action
on the July dividend. Partly as a
result Of the definite decision Of the
Hooking Valley directors to pay a
dividend, the Chesapeake and Ohio
board did not reconsider it's deci-
sion to defer payment when they
met today. Chesapeake and Ohio
declined almost 4 points when the
news came out, bringing the stock
down to its lowest price since 1918.
United States Steel common sold
today dSwn to the lowest price since
1915. This record recalls the condi-
tions under which the low price Of
IS was established in February.
1915. when the Stock Exchange
reopened in December. 1914. after
having been closed from August Of
that year. stocks were protected
against panicky selling by the inn
position of restrictions on the price
at which they could be sold. Esch
stock had its minimum price. Steel
common started with a minimum Of
~ and this was reduced to as by
February. On the day that trading
at IS was first permitted steel COM
mon came out in blocks Of thousand
of shares and was quickly absorbed
by big financial interests.
7
stocks was freely predicted before
the market opened. so that the
Street was not surprised when this
group was singled out as the CEN
ter of a bear attack. Nevertheless
the violence of the decline was dis
concerning and contributed toward
bear successes in other quarters.
The selling started in Baldwin
I IL
IS before American Locomotive was
brought under pressure. The lat
ter went down a point TO II and
stopped there for a while, but the
;ull apparently marked the organi-
ration OF a concerted effort which a
short time later sent the stock
down from "a TO TAX in a single
string OF sales. At about the same
time Baldwin was driven of an
additional point and a half TO 6sl-
and American Car and Foundry was
sold down to 1I5k. All these were
new low records for she year. From
these extreme low prices the three
stocks rebounded and were solo
again around midday.
Amidst all the depression and ex-
travagant boastings of the bear
contingent there are some keen
market observers who can see their
way clear to draw favorable con-
illusions from the downward adjust
ment of stocks. II was pointed
out in one well-informed quarter
today that the Dig operators may
at this time be doing just the re-
verse of what they did on the &C.
CASTOR of the last substantial rise.
They sold their stocks short dur
ing the two weeks of rising prices
ended May and IL Is now hinted
that TIE same interests are ac-
cumulating stocks WITHOUT discour-
aging prcmiscous Short selling
which will furnish the ground work
for a rally.