The Washington herald., 1921-08-25

NEW YORK, Aug. 24-There was
no let-up to the pressure exerted
by professional shorts in the stock
market. Attacks were again directed
chiefly against the same vulnerable
industrials which yielded SO easily
on Monday and Tuesday. In some
cases the declines were due to q
combination of short selling and
forced liquidation, notably in United
Drug and International Paper. Only
a small volume of offerings was
necessary TO depress such stocks as
Columbia Graphophone common and
preferred. Pierce Arrow common
and preferred. Chandler. American
Smelling, National Lead, American
Sumatra and American Steel Foun-
dries Very little heed was given to
the fact that money was plentiful
at 5h per cent on the exchange
and at 5 per cent In private ofices.
Announcement this morning of
further substantial price reductions
by two more companies, Peerless
and Stevens-Duryea, confirmed pre-
dictions made some time ago OF
a motor pricc-cutting war for the
late summer and fail. Although
news of this sort.was not unexpect-
ed. shares of most of the leading
companies reacted. Pierce Arrow
continued its recent weakness by
declining to a new Sow of 22h for
the preferred and 10H for the COM
mon. Chandler also invaded new low
territory for the year in selling at
hA
lily and at SIS clipped Is of Its pre-
vious low price for the year. Stu
debaker, however, was an exception
to the general trend and held firm.
The trading community preferred
mystiflcation at the failure of the
stock market to make adequate re-
Spouse to good news when II comes
out, and this is a feeling that Is
common to bear operators as well as
the constructive element. The con-
sencus among keen observers is that
this condition is due mainly to the
utter lack of support which must
be contended with in the case of at
least half OF the industrial list
The public is not buying stocks.
Persons who would like to take
part in this market and will prob
ably do so when their courage runs
higher, have about come to the con-
clusion that the bottom OF the de-
cline is somewhere in the imme
date future. They apparently be-
lieve that stocks cannot go up, hav-
ing been given so few notable in
stances of that tendency recently.
The Street believes that this con-
dition can be changed in no other
way that by creating a strong lead
era stock that will really go up
in such a sensational manner as
to change public sentiment. In this
connection there is talk OF groom
ing some such stock as Mexican
Petroleum to perform the service.
A break of nearly five points In
United Drug in the early morning
trading led to the belief that a part
at least of the large holdings of the
president of the company. Louis K.
Liggett. was being liQuidated. On
July %, following a break of over
twenty points in United Drug. it was
announced that the assets OF Presi-
dent Liggett had been placed in the
hands of three trustees to admins
ter for the beneft OF creditors. The
president stated that he had bought
stock at $142 a share and had con-
tinued to buy IT down to so. and
that he had suffered a loss of over
100000 in the past eight months.
A latter statement from the presI-
dent to stockholders Of the company
said In part: should my stock hate
to be sold In the market, undoubted-
ly our stock will sell much lower.
do not know whether they will
have to liquidate my stocks or not.
but not one share of my stock will
be sold il it can possibly be avoid
ed. At that time the president said
he held $4,000 shares OF United
Drug Company and Liggett's Inter
national stock. Today United Drug