Evening star., 1921-03-16
SHORTS DRIVEN IN
FOR SHARP LOSSES
ny STUART r. WEST.


NEW YORK. March 16.-Todays
was the logical sequel to the over
doing of speculation on the short
side, which had become sufficiently
plain on the previous day. 1t was
pointed out at the time the bear
tactics were to select stocks of the
highly speculative type that were
easily susceptible to manipulation
and push them down in an effort to
shake the nerve of the general list.
These efforts completely failed OF
their purpose.
1t was not hard to drive down
such mercurial specialties as Mexi-
can Petroleum. General Asphalt,
Crucible Steel and Atlantic Gulf, but
it was quite another matter to per-
suade the general market to take
these operations seriously. Yester-
day was the final experiment, and as
business closed last night 1t was the
firm conviction that the market was
oversold and that the bear campaign
had broken down.
At the opening today, accordingly.
there was a further demand from the
uncovered short interest which made
itself felt in higher prices all around.
This buying-in of short contracts
did not become general. however, nor
assume any particular urgency until
the session was half over.
shorts Cover Freely.
Then the covering movement reached
through the entire list and carried
prices forward rapidly. The gains
among individual stocks were proper
toned, as naturally would be expected,
to the extent to which they had suf-
fered from bear attacks. Mexican
Petroleum. Crucible Steel, Baldwin
Locomotive. United Fruit. tha tobac-
smelling issues and the steels-these
were the leaders in the Industrial Sec
ton.
But railway shares moved ahead
with scarcely less readiness and 1t
was demonstrated that the short in
terests in this quarter of the list,
based, of course upon the uncertainty
of the wage problem, had been un-
commonly large.
Although the advance data on the
Studebaker report were exactly borne
out by the figures, they apparently
had not been believed, for Studebaker
sponsive yesterday. led the entire mo-
tor group, following the appearance
Of the actual statement this morn
ing. With Studebaker showing over
SIS a share earned for 1920, and with
accounts coming in from all sides of
automobile industry. 1t was natural
that the buying movement should
have particularly favored the motor,
motor accessory and tire shares. Ajax
Rubber, Goodrich, United States Rub
ber, Fisk and kelly-Springfield were
all very strong.
American International
While the American International an
nual report states for the first time
the number and amount of its hold
ings in other companies. this does not
throw the light that is necessary to
determine the value Of International
stock, because 1t does not state what
prices were paid. Investments are car
ried at cost or slightly more than $32,-
end of the previous year.
The company's holdings of Marine
common and preferred are set down
at 10000 shares Of each. which rep
resents about nth interest in the
entire issue.
The statement has been made quite
unofiicially. but without denial, that
American International did not pay
over $50 a share for it's Marine pre-
ferred. Its United States Rubber. OF
which 1t owns only 1lt250 shares. Is
supposed to have cost not far from
current prices. The loss here, how
ever, il there is loss. is incensider-
able.
Regarding the much discussed ven-
ture in Simms Petroleum. there is no
particular information contained in
the statement that S9,744 shares were
owned at the close Of the year. 1t was
given out some time ago that the total
cost was only q little over 5000. 900,
which would have made International
pay In the neighborhood Of $40 a
share.
The total loss at current prices for
Simms may be estimated, therefore
-. something like $2,S00.000.