Evening star., 1921-02-19
|NDUSTR|ALS SOFT,
OILS IN THE LEAD
Mexican Government Sup
port of Carranza Decree
Hard Jolt.
BY s. p. WEST.

NEW YORK. February 19.-The mar
kets again were unsettled today. with
a further break in the exchanges ana
acute weakness in various industrial
stocks. Sterling fell another cents
in the pound. completing loss OF
NEARLY 8 cents since Wednesday morn
| ing This meant the almost complete
undoing of the recent speculation.
| In the stock market continued
pressure against some of the indus
trials which are in weak position
for special reasons was the feature.
Atlantic Gulf had another bad tun pie.
There was no longer much douot tnat
| the dividend on the common Will be
passed altogether. while the low SELL
ing price of the preferred indicates
much uncertainty regarding its dlVl-
dend. too.
Mexican Petroleum and Pan-Ameri-
can broke very sharply on the rather
hasty Interpretation placed upon the
news from Mexico that the ObregOn
government proposed to enforce the
Carranza decree which would prevent
American companies from doing any
more drilling in new properties. Later
it was pointed out that this decree
would not affect American concerns
until there has been time for it to be
revised by the Mexican congress now
in session.
Utah Copper Weak.
Utah Copper was another weak spot
rejecting uneaSineSS regarding the
next dividend. in view of the failure
of the hope for recovery in the copper
metal to materialize. All the other
copper shares were more or less de-
pressed
Central Leather stocks were heavily
sold on the s25.000,0O0 deficit in the
annual report. which was an even
more melancholy showing than had
been looked for.
On the other hand. these points or
weakness were fully matched by
points of strength.
Despite the denial that there was
anything in the recent Norfolk and
Western rumors. the stock made
facing segregation plan. was ac-
lively bought. keystone Tire and
American Sumatra were the leaders
of the industrials.
Mexican Petroleum Jolted.
Mexican Petroleum opened down
point and along with Pan American
quickly became one of the leaders OF
the decline. These stocks had stood
up well against yesterdays story
about the impending exhaustion of
wells in the Tampico district. This
was because it was realized that there
was plenty more territory in process
of development But this prop was
suddenly taken away by the word re-
ceived this morning that the new
Mexican president had enforced the
obnoxious CarranZa decree allowing
no drilling permits on lands not ma nj
tested in accordance with the decree
of August 1913.
AS none of the American companies
complied with this decree. they are
placed in the position of being check
ed in any further development work.
1t was an upsetting incident. more
so because one of the reasons for
hulling Mexican stocks has been the
impression that the new regime was
much more favorable to American
interests and was prepared to settle
amicab1y the vexatious oil question.
Central Leather Weak and Soft.
The annual report of Central
Leather. published this morning
turned out to be even worse than
anticipated. and there was heavy
selling of Central Luther issues
which carried the common down to
new low and caused a severe break
in the preferred.
The statement was one of the worst,
in fact, yet issued by an industrial
corporation. 1t fhowed a deficit for
the year of $25.750.0O0 and brought
S3O, 100000. as it stood at the close Of
1919. to less than s5.000.O00. The
president of the company stated that
tanneries had been shut down COM
pletely from May until November and
inventories had been liquidated as
fast as possible. These inventories
have now been marked down to the
current low prices and at the close
of the year the company had no com
mItmentS for raw material