Evening star., 1921-12-02
MARKET REFLECTS
.. Divergent VIEWS
steeIs Are Leaders and
- Rails Continue
Sluggish.

NEW 1Ohh, DcCeIHDeT ss-SfihS
and losses in shares of the same de-
scription again reflected divergence
of speculative sentiment at the OPEN
ing of todays stock market General
Electric was the leading feature, soon
rising 8 points, and Standard Oil of
New Jersey continued its upward
course at a gain of IN. Mercantile
Marine preferred and American In
ternational also were strong, and
s-Roebuck common and prefer
red rallied moderately on the reten-
ton of the preferred dividend. -,
Rails displayed further irregularity
within a narrow range. American
Sugar, American Car and Royal Dutch
were under pressure. Leading foreign
exchanges reacted from yesterday
highest levels, sterling, francs and
marks showing sharp 'reversa1S.
steels Are Active.
Independent steels, especially those
most prominently mentioned in the
merger rumors. became the market
leaders before noon. Lackawanna,
Republic and Midvale rose three to
five points, and Bethlehem. Crucible.
Gulf States and Sloss-Shemeld were
one to three points higher. General
Electric and Standard Oil Of New Jer-
eey extended their gains with Standard
Oil of California. Coppers, Shipptngs,
International Paper and American
Woolen were included among the con-
spicuously strong features.
Rails remained sluggish, the invest
ment group continuing to ease. For
eign exchange showed further unset
tlement after a moderate rally. Call
money opened at per cent.
Steel Merger stocks.
The remarkable thing about the
sudden buying movement In the 1nde-
pendent steel shares was that ~
should have been postponed twenty
four hours after the news Of the
merger negotiations had come. out.
This news reallS broke yesterday
morning. but Yesterdays market
scarcely paid any attention to 1t at
all. The supposition was that the
deal was not actually closed until
after the close last night. and that
the terms on which the different
stocks were to be taken in were not
known to the chosen few in time to
be acted upon until this morning. Tne
secret as tothe prices at which repub-
lie steel, Midvale and Lackawanna
are to go into the combination was
well guarded during the day.
The street remembered, however, the
wild speculation which preceded the
formation of the United states Stee!
Corporation in 1901 in the stocks OF
the constituent concerns, and took its
cue from this precedent. Lackawanna
Steel did not even temporarily stop
it reached Al. The rise in Republic
was eually abrubt. As for Midvale.
it was extremely hard to buy for
stock which ordinarily is in good
supply. .-
Tire shares Strong.
Like the Independent steels. the rise
in the tire stocks seemed like be-
lated move. It might have been ex-
pected yesterday, when word came OF
cents. Nearly all OF, these companies
have marked their inventory during the
slump down to prices we'll below this 20
cent level, so that they are now In
position where their assets are higher
considerably than they are being car
ried at on the books.
The buying really started in Goodrich
and spread to Kelly-Sprtngnetd, United
States Rubber and Lee in turn. Earlier
in the week the statement was printed
inventories from $72 100. 900 to s3s.000.-
900 during the hrst nine months Of the
year and that its entire bank indebted
ness was In a fair way to be extin-
guished by the close Of 1921.
There was active buying of Cali
fornia Petroleum following the state
ment for the first nine months of the
year showing a surplus well over 50
ON the common stock. This result.
covering the period when the oil trade
was at its worst and before the big
turn for the better had come, was
very remarkable. The advance in
prices since the end of September
will, of course, expand California
Petroleum's 1921 earnings to a much
larger total still.
In addition to the reports that
President Harding intends urging
Congress to create a ship subsidy for
companies operating under the Amer
lean flag and that this will benefit
the international mercantile marine
in great measure, the report will not
down that mercantile marine has
large sums coming from the Shipping
Board and that a settlement Is near.
In some quarters the sum represent
ed as due from the government is
placed we'll in excess Of $30,o00,000.