The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1921-10-27

RRECULABlIY AlR;
REAC1IONARYI0 TONE;
RULES STOCK MARI:
Activity Decreases =
Short Covering Move.
ment Spends Force.
LOW OILS FEATURE
Rumor Of Projected Merger Of
Small Sugar Oompanies
Occupy Street.
LOW OILS FEATURE

NEW YORK. Oct .s.-rhe coxsr-
ing movement which was apparent
In yesterday markets seemed 10
have spent its force today. Az
result activity fell on ana prtoes
showed q tendency toward r,scf,on
and irregularity. This disposston
was apparent In the stock market
from the start and continued 70 fbs
close. The list OF stock traded IN
continued as broad a. IN the prsvf-
GUS session. but the volume OF
transactions was smaller. Lev
priced oils were still the featur>
Tor strength. while steeis were ar,
ana rails declined fractionally. Csu
money opened at 6 per cent Tor ~.
nrst time since October Il, but was
reduced to 81 in the ,sfternoon.
Sugar Merger Ramon. -
A merger Of independent .teei
companies is always q possibility.
ana taik OF prospective combfna-
lion or copper producing units never
Iaiis 70 draw an attentive audi
ence. Rumors OF this kind sfYeef-
ing both these prospects have besn
neard during the past six month";
NOW comes q story Of q pro3ected
merger OF some Of the smaIler
sugar companies into a combine
ton that would present q strong
'front.' against the American surar
organization Wall Street was nv
no means inclined TO dismiss the
story without giving Il due consid-
enlon- According TO today, re-
port the b. II. Howell Son and CON-
pany interest would form the nu-
cleus Of the proposed mercer.
These interests include the National
sugar Refining Company, which
was closely related to the American
sugar Refining Company at one
time; the Central Aguirre surnr
Company, Cuban American Cor
solidated. Holly. Guantanamo, cha
para, Mercedita, Fanro. west
India and New Niquero Sugar COM
panies.
Re Aeeumulstse. 81 steeks-
The question that always arisen
when fluctuations move uncertainty
in trading area for any lenFth OF
Tune Is whether the big interests
are accumulating or Distributing
stocks Such q period ended on o.
tober IL, the day after the rafi-
road strike announcement, after
having lasted for about i've weeks
The speculative community as q
unit cannot quite decide whether
those i've weeks OF apparently aim
less trading represented accumuia-
ton OF distribution Each Of the
commission house observers who
has a worthwhile following has. Of
course. a definite idea II &C. an
other case of the honest difference
of opinion. which IL one OF the per-
quisites Of a stock market Those
who hold that stocks were being
accumulated also hold the opinion
that this is a bull market. subject
to periodic reactions. On the other
hand the late rally Is only an Incl
dent in an unfinished bear market
to those who believe that stocks
we're being distributed during the
five weeks period mentioned
One of the outstanding features
Of the stock market during the
irregular trading OF the forenoon
was the active buying OF coca-cola
common stock at prices gradually
reaching a position III points above
the closing level Of yesterday. By
noon the stock stood at 3sk. new
high for the year. and a gain Of a
little more than 100 per cent from
the price Of last February. There
was talk of the common dividend
being resumed before the end OF
the year. Coca-cola paid dividends
Of 81 a share in April and July,
1920, but has paid nothing since