Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1921-08-17
OILS UNDERGO
HEAVY LOSSES
ONN.Y. CHANGE
Stock Market ReactiOnary
With New Low Level
List.
STEELS TAKE DECLINE
BY MONITOR.

STEELS TAKE DECLINE
BY MONITOR.
Special TO Indiana Daily Times
/ and Philadelphia Public Ledger
NEW YORK, Aug /17-Yesterday'
stock market furnished a fair amount of
activity considering the scale of recent
( operations but the tone was reactionary
and losses throughout the list were gen
eraL Another list of new low levels was
/ registered and no quarter of the market
was entirely exempt from pressure. A
! good deal of the selling was thought to
represent liquidation, although reports
! to the effect that Western banks were
selling out collateral were not, of course,
susceptible of confirmation.
! One of the weak points of the market
was represented by the oils, practically
all of which suffered more or less and
some of them severely All of the Mexi-
can Petroleum group were actively sold
and the pressure included Houston,
Texas Company, Sinclair and Cosden.
California Petroleum was not particular
! ly helped by a very favorable statement.
Sharp declines were registered by some
Of the equipments, notably Railway Steel
! Spring, American Steel Foundry and
/ Pressed Steel Car. General Elecrris re-
sumed its decline and among the weak
miscellaneous stocks were International
/ Harvester, Chandler Motors and Ameri-
/ can International.
! In the absence Of news Of a definitely
/ discOura ging character, the downward
/ tendency of the market probably can be
/ explained only on the ground of scattered
! liquidation with the usual bear pressure.
and a lack of outside buying as an Offset
/ to this pressure. Public confidence and
! public interest in the market seldom have
! been at lower ebb.
WALL STREET GOSSIP, BY MONITOR.
/ The market Tuesday differed little
| from that Of recent sessions as the slow
1 liquidation which has been in evidence in
many issues was continued. A long list
1 of common and preferred stocks made
/ he wlow levels, not only for the present
movement, but in some instances for all
! time.
For more than a month International
/ Harvester was held between fractions be-
! low Il and fractions above 10 The short
! interest was fairly well eliminated
through the narrowness of the movement,
as well as by an imposition Of a premium
for borrowing the stock. When dis
t1bution had been completed at this
level. the price was permitted to decline
and transactions were recorded at 6Sl5
Part of the selling for months past has
been for the account Of interests idenu-
fled with the company. There have been
vague rumorS of a dividend reduction,
but these are not taken seriously. The
company generally is supposed to be a
large holder of farmers paper which is
frozen credit and the agricultural in
terests are not enjoying such prosperity
as viii admit Of large purchases of new
equipment 1t is reported too, that a
general price reduction will be put into
effect Sept l. These are the underlying
reasons for the recent selling.
Sinclair Oil made a new low record for
all time when it sold below II This
price compares with SEQ which was the
last underwriting price. There is no
evidence of banking support and such
fractional rallies as occur are due wholly
10 the covering Of short contracts.
The railroads were firm during the day
on early reports from Washington that
the Townsend bib would be passed be-
fore Congress adjourned. When a little
tired selling came into the market just
before the close, the rails yielded easily.
The trading element is inclined to think
the recent advance which carried some
issues 10 to 20 points from their low
prices of June discounted most of the
favorable factors which the market might
experience from the passage Of this legis-
lation.
The oil stocks were heavy under the
pressure Of liquidation sales. The state
ment of California Petroleum for the six
months ended June 80 showing sur
plus after charges and taxes of 81. 52O,6Sj
equal TO preferred dividend of S7.79 per
share on the common. as compared with
S494 in the corresponding period of 1920
failed to exercise more than a stabilizing
effect on this issue. The foreign oils
We're particularly sensitive to selling or
derS, Mexican Petroleum, Pan-American
and Royal Dutch all making new lows
for the present movement. Pan-American
35l4,
Baldwin Locomotive was the ERNEST Of
the equipment stocks. favorable senti-
ment being created by the publication,
Of the orders taken in Mexico. 1t showed
some loss for the day, but stood up in
contrast 10 Railway Steel Springs,
Pressed Steel Car, Haskell & Barker and
some of the other equipment issues.
The arrangement whereby the Baldwin
Locomotive Company accepts Mexican
government notes for equipment valued
at S2,50o.0OO, is raising again in the
street the question as to how far
corporation may go in using stock
holders money to finance foreign gov
eminent requirements. The granting of
credit by an individual corporation to a
private customer is an established busi-
ness custom. The granting of credits
by a private corporation to a foreign
government is a matter which is viewed
in not altogether the same light.
The Freeport Texas Company neports
for the six months ended June so net
profits after expenses, but before taxes
depreciation and depletion charges, $217,-
S66, equal to AZ cents per share on the
stock. as compared with S73S. 493, or STAT
per share in the corresponding peniod
last year.
The railway freight movement accord
ing 10 executives here, has shown some
increase since the second week in July,
but 1t has hardly eQualed the normal
seasonal increase which usually COM
mences at this time and continues up to
September or October. The EASTERN lines
reach some increase in movement of coal
into that district. This leads many ira
ders to the conclusion that surplus
stocks of steel are being moved rather
than any renewal of steel making ac-
tiyity.
The copper stocks continued to show :
such limited liquidation as the market Is
of the metal are reduced to the minimum
with offerings at Il cents as against 1915
cents, which was the quotation firmly
maintained by the large producers up
until Monday.
Directors of the American Telegraph
and Telephone Company met and de-
clared the regular quarterly dividend of
50 % per share on the stock of that cor
cents per share was declared by the di-
rectOrS of the Erie & Pittsburgh Rail-