The Washington herald., 1921-11-24
PRICES DISTINCTLY.
IRREGULAR IN Less
ACTIVE EXCHANGE
Revenue Measure Leads
To Cash Selling to Reg
lister Losses.
SPECIALS FAVORED
Chemicals and Gas Stocks Are
Centers of Interest and
\ Strength.

NEW YORK. Nov. 23.-Trading on
the stock exchange vas again
quieter. sales running around the
100000 mark. and prices were dis
tinctly irregular. A certain amount
of cash selling TO register losses In
anticipation OF passage of the rev
enue bill was in evidence. but this
had little effect on the market as a
whole. Specialties were the CEN
ters OF Interest and strength in
Chemical and Gas stocks were the
features Toward the close prices
on the whole unchanged. Bonds con
Inued active and strong. Call
money. after opening at 5 per cent
was reduced to "a shortly before
noon.
Favored Issues Gain.
Two weeks ago many OF the mar
ket observers who were talking re-
action did so with the qualification
that no matter what happened there
were several issues which. for spe-
cisI reasons. would move upward
Dawson Chemical was one Of them
This stock was selling at 30 on No
vember z. Since then il had moved
gradually forward without any dis
play OF made-to-order enthusiasm
Today IL touched 55%. a price which
represented a net gain Of points
from yesterdays closing. Al first
II was thought by outsiders that the
movement was due entirely to the
interest of Standard OIL Company
in Dsvison's new byproduct silica
gel" This gave rise 10 a report
that Standard interests were buying
the stock Today il was reported
In ~ h1s h.,
is contemplating a recapitalization
which would take in the present
stock at $50 share. The company
has outstanding an issue Of notes
totaling between $4,000 600 and So
0O0, 900. which are convertible into
stock at $50 prior TO March /. 1925.
The notes are redecmable at the
option Of the company at 1882 and
interest.
The Revenue Bill.
Among the amendments that have
crept into the new revenue bill
without attracting widespread at
tention is a provision which virtu-
ally removes the Federal tax on the
borrowing and returning Of stock,
Under the old tax law the specula-
tive community has grown accus-
every time 100 shares Of stocks are
borrowed and a similar amount
when the stock is returned TO the
owner. This means an addition Of
50 20 the cost OF selling 100 shares
Of stock short and completing the
transaction by borrowing The rev
enue bill stsyes specifically that 'it
is not intended by this title 20 i'm
pose a tax upon mere loans
Of stock nor upon the return Of the
stock SO loaned" Brokerage houses
wepe intensely interested in this pro-
vision. but were sverse to estimat-
ing IL at its full value until the bill
should be finally adopted and signed
While the market was moving un-
certainly during the first two hours
a forward movement was being cN-
ecuted in the gas stocks under thr
leadership Of Peoples Gas This
stock and Columbia Gas made new
highs for the year. each advancing
about a point Consolidated Gas
wss up almost a point in the same
period OF time. The Columbia state
ment published a short time ago.
revealed a substantial Improvement
in earnings. The Peoples Gas re-
port for the year ended September
80 showed a surplus equivalent to
1886 a share on the stock