The New York herald., 1921-06-11
FINANCIAL NEWS
AND COMMENT
Drop in Standard Rails Fea-
ture of Stock Market
Mexican Oils Slump.

Stocks were steady al intervals yes
terday as purchases TO retire earlier
short sales were made, but the weakness
of individual issues established the real
tone of the session. Rallies were brief
and it appeared as though every lull in
selling was followed by fresh and in
sstent pressure against such shares as
Mexican Petroleum, Pan-American Pc
troIeum. Atlantic, Gulf and West Indies
and American Sugar The reason why
speculative traders should have conferred
their attacks on these stocks was obvious
In the days news. The latest informa-
ton of an authoritative character indi-
Gated that President Obregon acted de-
liberately in decreeing an additional tax
of % per cent on petroleum exports and
that the question raised among producers
about the possible confiscatory nature of
the full impost was one which the off,
cials of the southern republic were quite
ready to consider from the negative side.
AS for the sugar situation. the steady
decline OF prices Of the raw product Of
late has made shares OF many companies
sensitive to sales.
The real feature OF stocks was the
decline of standard rails. The reced-
ing movement elsewhere was the con-
tinuaton of swing which began more
than five weeks ago, but stocks OF the
carriers had held up fairly well. de-
spite rumors of strike possibilities and
agreements which go into effect on
July /. Atchison drew back ~ points
ard Northern Pacific lost more than 2
points. Readings retreat of points
end the reaction of p. points in South
ern Pacific, together with substantial
fraction declines elsewhere drew at
tention to the earnings and dividend
outlook Of the railroads as whole.
prise one Of the most interesting periods
or after war readjustment. In the light
of what has been happening to indus
trial company dividends, 1t would be
penses akin to those OF manufa cturers
were to pass by the railroad managers.
III fact, the salient influences at work
in the transportation situation are so
well known that the market has ceased
&c consider for the time being at lea st,
the problematical effect OF pending
wage reductions and is centerng it's
attention on the late summer and the
mill operations at about 60 per cent. of
ca apacity and highly irregular business
il. other lines OF production. the actual
outlook for freight is not likely to be
Steel shares were steadier than other
departments, the monthly report Of or
ders by the steel corporation disclosing
no new details OF depression. The de-
cline OF 3s2.7S7 tons during May was in
line with expectations, although the fig
ures gave no indication OF the extent to
which cancellations worked to reduce the
total of forward contracts.
Thursday revived discussion of a possible
cut Of rediscount rates at New York and
elsewhere In a few days the unusual
transaction cntailed In Government oper-
ations. which will be put through in a
money market affected by large supplies
OF new securities in process Of distribu-
ton. will be completed and thereafter
easier money rates should appear. Yes
terday the call loan renewal rate was
per cent. for the first time since April 20
and per cent. was quoted for offerings
off the New York Stock Exchange.
Again the sterling exchange market was
erratic. starting sA cents lower with a
quotation OF $40, whence rise OF as,
cents occurred. The mark rate moved
counter TO sterling. losing a little ground.
but Continental exchanges generally sd-
vanced