New-York tribune., 1921-05-10
Break i'm Motor
List lJllsettles
Stock Market
Sentiment Confused al Start
on Price Cutting; Rails
Continue Strong; Scor-
ing Gains

Conflicting influences played upon
the stock market yesterday as the new
week opened and found reflection in
an extremely irregular range of price
fluctuations on fairly active trading.
Speculative sentiment was confused
right at the start by the news OF
| fresh price cutting by motor and motor
accessory companies and the selling
that broke out in the motor share
group soon unsettled the entire indus
1 trial list
The market presented distinct line
| on cleavage as between the rail shares
and the industrials. While the latter
were moving in irregular fashion and
generally toward . lower level of prices
the rails, which have been somewhat
neglected of late, while speculative in
terest has been focused upon the in
dustrial specialties that came to the
front with display of pronounced
/ strength.
The news of further price reductions
IN the motor industry, though used as
2 pretext for selling stocks, was hard
~ surprise, in view of the fact that
the financial community knew last
week that other cuts would follow the
reduction announced by the Chevrolet
Company. The cut made effective yes
terday. by the Oakland Company, the
second General Motors company to
| move IN the direction Of lower selling
prices, is accepted as indicating an i'm,
portant change in the marketing policy
OF the General Motors organization.
Other independent companies are like
ly to follow the line of action of Cen
era! Motors and the names of several
nxxyY1
tloned yesterday in this connection.
Among the weakest of the motors
were Pierce Arrow. Studebaker. Willys-
/ overland and Chandler, almost ali of
winch were issues which developed
vigorous strength in the recent re-
eovery. The pronounced weakness in
Pierce Arrow, which broke 4 points.
was associated with the poor showing
made by the company in the first quar-
ter, when before deductions covering
the preferred dividend requirements
there was deficit of S4Ss,000.
The upswing in the rails when the
industrial list was behaving so badly
stood out as perhaps the leading fea-
tnre OF the days security market. The
| advance In the rails took in all classes
of rail shares, including the old line
seasoned dividend paying issues, as we'll
as the shares of the weaker roads like
Erie, ST. Louis & San Francisco and
Missouri. Kansas & Texas. For lack
OF better explanation the Street at
tributed the better tone in the rails
to expectations of an early decision by
the Railroad Labor Board reducing the
wages of railway labor and belief that
April operating statements of the
roads viii show further Improvement
as a result of the inauguration of re-
cent economies in operation.
The government report on the winter
wheat crop showed falling off in the
condition of the crop of 22 per cent
in April, but the abandoned acreage
was only 4.6 per cent. compared with
a ten-year average OF II per cent. The
indicated yield on the governments
figures is about 100000 bushels
larger than last month, or S29,2s7, 900
bushels. Wheat prices closed lower at
Chicago. The cotton market was quiet.
In the foreign exchanges rates in
Norway moved upward in market in
which the general trend was coward
reaction. French. Belgian and Italian
currencies yielded. Sterling closed at
$9.97M for London sight drafts.