The Washington herald., 1921-05-21

view Of the fact that In several
quarters there had been talk for
some time Of the rate being reduced
Traders were a long time In real
king q net gain Of half point on
the stock.
Within the past few days there
has been a noticeable increase in
the amount Of time money available
at the price which brokers bid for
1t. namely, 81 per cent The bulk
of funds being loaned are for three
and four months
Directors of the Chesapeake and
Ohio Railroad met today and de-
ferred action on the semi-annual
dividend of 2 per cent usually de-
clared at this time In the opinion
Of many this action was foreshad-
owed by similar disposal made Of
the Hooking Valley dividend yester-
day. but II was noted that there
was no great pressure to sell Chesa-
peake stock yesterday or today un-
til the announcement was actually
published about midday. Then the
stock broke sharply. declining from
So to 5sk within a relatively short
time. The years high record for
this stock was the price of s5h
reached on Wednesday of this week.
The Chesapeake and Ohio owns S.
s25.soe OF the sl1.o00.00o capital
stock OF the Hooking Valley Rail-
road. The omission of the semi-en-
nual dividend on this stock. there
fore, means s17s.516 to the Chesa-
peake and Ohio.
A break OF almost 4 points in
American Linseed common repre-
sented the markets response to the
passing of the regular dividend OF
rs cents. This rate was insugurated
in December, 1919. and was contin-
ued without interruption up TO and
including April of this year. Lin
seed did not find its new trading
level until IL had reached 34h, or
just one-eighth point above the
years low. IL sold as high as 62h
on January 81. The stock had been
heavy for several days. primarily
because traders had given up hope
Of the Lever Brothers deal being
consummated this year. The Levers
themselves have been forced into
the London money market this year.
According to a Wall street theory
that worked well in practice. large
increase in the volume of stock
transactions for several successive
days foreshadows an end TO the
movement then current. but a grad
ual contraction in volume indicates
that the market is going into a mar
row trading area IL that rule
works in this case, then no marked
movement in either direction can be
expected in the immediate future.
for the market pace has slowed
down perceptibly. Yesterdays total
sales OF only 10000 shares told a
story of dullness which today's trad
ing served only to emphasize. At
noon at least a dozen fairly active
issues had failed to make their first
appearance.
One of the few groups to show
any signs Of activity was that rep
resented by the total shares. The
feature here was a wide demand for
both classes OF American Tobacco
common. The old stock sold as low
as 112% on March IL. which was
about the time that a great num-
ber of stocks made their low marks
for the year. In the first two hours
today this Issue went up more than
1 y points Yesterday it showed a
net gain of 2k points. The fact
that this movement has been car
ried out without any definite excuse
for the buying being given places
American Tobacco in the class with
mysterious stocks Last year the
company earned little more than
was necessary to pay its IL per cent