Evening star., 1921-03-24
MARKET IS SOFT
0NEUROPEANNEWS
BY STUART r. WEST.

NEW YORK, March 24.-In today's
outside conditions which were the
influence. Prices had gone
up too fast on the preceding days
too fast, at least, for a market in
which there was no broad public de-
mand and which depended largely
upon professional initiative
1t was a matter of dispute lust
how much the short interest had
been reduced on the upturn, some OBJ
servers maintaining that there had
been enough fresh short selling to
balance to quite an extent the COW
ering of the older bear accounts But
it was queer from the outset that
covering purchases were no longer
urgent and that not much new buy
ing was coming in at the higher price
levels.
On discovering these things the ac-
tive trading element. which had been
following and helping on the upward
movement of yesterday and the day
before. set about taking their profits
This selling was Offset for a. time
by the upbidding of various in
dividual stocks. such as Corn Products
and American Woolen. but later in the
day 1t began to show itself, especially
in the recent favorites among the
motor and tire issues and the oils.
A Technical Market,
any otner than q technical ex-
PLANTATION for the days price move.
ment would have been quite out of
absolutely nothing in the outside
news that could have brought about a
change in sentiment sufficient to turn
the active buoyant upward swing OF
the previous days into the hesitatine
comparatively dull movement which
session today.
1t would have been far-fetched tn
attach significance. for the course ~
the stock market, to the Communist
outbreak in Germany when this had
so little effect upon the exchanpe
market.
German marks were off 4 points or
SO, but sterling was higher and other
continental rates steady. 1t could not
have been said that stocks were re-
developing in either of the two v;taI
quarters-the trade situation or the
money market -e
Dividend Passed.
directors OF the Virginia-Caro1;n, :,
Chemical Company passed the dividend
on the common stock. but this had
been fully expected and was due as
everybody realized, to the peculiarly
unfavorable conditions in the ferfii.
izer industry resulting from the col.
lapse in farm prices.
Talk of other dividend reductions
had its influence upon other industrial
STOCKS put as against this the en-
couraging reports from the textile and
related trades were reflected in q sne-
cial demand for American Wooden and
related issues. AS for the money mar
ket. 1t was the same as yesterday with
4 612 per cent call loan renewal and
three-day funds till Monday at per
cent.
Some Good Earnings,
The really most important contribu-
tion in the routine commercial news
was the reports for February by
Union and Southern Pacific Both OF
these indicated an extraordinary i'm
provement as compared with January
To be sure. the chief reason for the
better net showing is the cutting
down OF maintenance expenses; those
of Union Facifc were down some
$2.000,d00 from the previous month
But tEis does not mean any undue
retrenchment: it is simply the cut
ting off of the abnormal appropria-
tons made Tor the Improvement OF
properly and equipment during the
first five months Of private operatioa a
Outside OF the maintenance ;tan.
moreover. Union Pacific was able to
redGse is operating charges. nearly
$4,000 IN February. as compa- -ed
with January. THIS showed tae ef-
feet Of the whole sale iay-on OF en-
p3oyes. Southern Pacifc reported a
net operating income of S1S73,000,
which was an increase of sa14s,O0O
over the same month last year
The remarkab BILE part Of the South
ern Pacific statement. however, is not
so much the saving of operating ex-
be..seS but the increase nj s,f~h H. "
mo'e than $1.0o0.0o0 in gross earn
inss as compared with February,
1920. This would seem to indicate
that Southern Pacific is one road, at
least, which Is recovering rapidly
from the effect OF the business slump.