Evening star., 1921-05-16
STOCKS ARE UNDER
SEVERE PRESSURE
Bears Busy in Motors, Oils,
SteeIS and Other Stocks.
Paper Firm.
BY. STIART =. WEST.

NEW YORK. May 16-In a stock
market looking for Some new int1u-
ence the Silesian elnbroglio was quite
welcome 1t furnished a now excuse
LOT professional spectators to renew
their activities on the short side.
These efforts met with success in
So!ie directions. while in others they
ulo not I1erce-Arrow preferred broke
10 new low for the year. and the
tohih1oh stock was very weak on re-
Iteration OF untavorable reports re-
SardinS the truck business of the
company.
ms had an unsett1ing effect upon
some OF the other motor and motor
accessory stocks. The oils like Pa
Fiiic oll, Texas Company and Sinclair.
"hich had been bought rather too
freely b! outside Spectators in their
recent advance. showed the effect of
TINS weakened technical position.
MtAIcan Petroleum was driven down
dGaih on talk of Il Spcria! report to
congress soon t" come out that would
be decidedly adverse as it bore on the
OIL conditions in Mexico
Ihere were a number of weak spots
among Spccialties. such as Interna-
Jiohtl Harvester. Continental Can and
corn Products But while these sew
"fal groups were going down others
were just as decidedly strong Amcri -
can Sumatra ran up sharply on the
pu!Hcaton of Il reaSSuring interview
with the president of the company, In
icrnatl"nal Paper was quietly taken
anxious to increase their interest in
III" company, Texas and Pacific was
heavily bought on intimations that
tn" rcceivership might be lifted. and
the gas stocks. some of them. made
new highs for reasons which are suf-
fici"ntly well known.
Situation in International Paper.
International Paper common con-
tinued to show the same special
The company has built up a surplus
which is now being used to take care
or operations while business is at a
low ebb.
Unless there is a change in the man
agement the intention is to pay no
q. Vldends on the common stock until
mere mas been an entire overhauling
OF the federal tax schedules which
viii make it easier for corporations
with larger current earnings
70 understand Why international
/ aprr az non-dividcnd payer should
how outside holders Of the original
Steel were discouraged
" men the stock was in the plain fif-
t!"s by the constant drclara tons from,
ne heads Of the company that no div
I",nnS Were in prospect for a long
y" hile ahead
It also has to be remembered that
! lnternational Harvester sold in the
i-oS hrforc anything was distributed
ana National Biscuit had almost the
same experience.
The Sumatra COup.
american Sumatra had begun on
saturday to show rather clear signs
OF at least partial reaccumulat ton of
important holdings distributed at
conslderabfy higher prices. This. with
a sood-sized short interest outstand-
ing mace UP rather strong market
position and nobody was much sur
prlSed at the accompanying publjca-
non Of reasSuring news over Sunday
a oout the condition Of the crop in
the south
IT was pointed out here during the
decline last week that Sumatra of-
nclalS took issue with the govern
Inent expert who claimed a serious
disease and maintained that it was
ohly mildeW caused by the weather
that was the trouble with the tobac-
co plant But the further statement
that Sumatra tobacco was selling At
the highest prices on record and
would be still further helped By the
higher duty imposed in the ener-
gency tariff came as a distinct sur
prise.
There were some who could not
help thinking that il this reassurinr
statement had been put out toward
the close Of last meek instead Of
waiting for the market In the stock
to turn it would have saved a good
deal of money for some rs the un-
fortunate outside holders caught in
the slump.
Market Crows Flrmer.
In tho late afternoon the market,
under the leadership of Mexican
Petroleum and International Paper,
made a more or less general rccov-
cry, with q better tone throughout the
oils. which have hoen weak spots for
some time. Mexican Petroleum
crossed 149 on tho recovery Shorts
covered urgently on the rally.