New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-04-03
In Wall Street
Studebaker Reacts

Studebakcr Reacts
The bears were not Mt all frightened
BY the story in the morning news
papers that w. C.. Durrant had ac-
nuired substantial stock interest in
Studebaker and set about yesterday to
depross the value Of the shares. That
they succeeded in bringing out q CON
siderable amount Of long stock in the
way Of stop loss orders was evidenced
by the 3 n points net loss Mt the close
Of the two hour session. However, the
stock loaned fat when the market was
over, which was also evidence that
much OF the selling had been for ac-
count of the shorts. Further discus
sion Of the probable entrance of Mr..
Durnnt into Studebaker affairs caused
the circulation Of reports that he has
no intention Of participating actively In
direction Of the companv's affairs, as
suming that he is now one Of the larg-
est shareholders. The weakness In
Studebaker was reflected in some sell
ing of Chandler, but the pool in this
stock put In supporting orders that
prevented wi deepen break.
Peoples Gas
There has been marked improve
ment In the position of public utilities,
which netx to railroads were the worst
sufferers from conditions brought about
BY the war. Not only have earnings
shown substantial increases but sew
cral companies have resumed payment
Of dividends, due to increases in rates
ind reductions in operating expenses.
Peoples Gas, since the company was
granted 80 cent increase in rate, re-
ports a big Jump in revenues. Up TO
June last year the company showed
deficit Of over $1,000, 900 from gas sales,
but with the higher rate this has been
wiped out and by December 81 net
income of $380,7B2 for the year was
reported. In 1920 the companv's sur
plus was equal to SO cents share on
the $SS,5o0, 900 stock outstanding. con-
trasted with II cents a share earned
the preceding year.
Offset Foreign Exchange Fluctuations
Among the various systems proposed
to meet the difficulty that 1uctuating
foreign exchange presents to interna-
tional trade, the so-called method OF
direct sale out of warehouses estab-
lished in foreign markets is described
by DR.. R. S. MacElwee. director of the
Bureau of Foreign and Domestic Com
mercc. Sales Of this character are
made on the basis of the momentary
consideration of exchange and price
and the goods are delivered at once, so
that the merchant knows that If he
can afford to buy them at that price he
is not going to suffer any loss by de
livery three months from the date of
purchase. He will receive the goods
Immediately and the transaction will
be closed. Selling from stock has the
additional sales value of giving the
purchaser what he wants when he
wants it. Mr.. MacElwee points out
that to establish warehouses and a
selling force for spot sales delivery
the Webb law. One hampering infu-
cnce OF this statute, however, is that
If goods arc kept in such a warehouse
abroad thtey cannot be reimported into
the United States in case the bottom
drops on. OF foreign market and a
market goes up at home.
The Break in Harvester
Last weeks break in international
Harvester shares may very likely have
been a reflection of the present en-
barrassment of the farmers. say
Wrenn Bros & Co.. in their weekly re-
view Of the market. The firm adds:
Mot since 1865 has there previously
UseH Sucn VlOlent Dreak In the prices
of farm products. Furthermore, this
occurred at a time when the farmers
were seemingly very prosperous and
were buying machinery, general mer-
chandise, and even automobiles, quite
freely. Their current liabilities were.
therefore, large. and owing to their /
general belief in the late autumn and
early winter that the break in the
prices of grain, cotton, animal and
dairy products was temporary they
borrowed freely at the banks to hold
back their products, awaiting re-
covery. The price recovery has not &C.
Cured, and their bany borrowing
served merely to increase their cmbar-
rassment from shortage of funds. Pre-
sumably, therefore, the farmers will
be very slow in paying what they owe
directly or indirectly to both harvester
and fertilizer companies. Yet stocks of
farm products in the hands of the gem
ersl public are bound to run low
within few months, and probably
agricultural prosperity will return be-
fore the end of this year. The Inter
national Harvester annual report does
not usually come out until about the