Evening star., 1921-11-29
LEAD
IN STOCK TRADING
Rails and Equipments Slow
Down MateriaIIy-Sears,
Roebuck Soft.
BY STUART p. WEST.

NEW YORK, November 29.-There
was quite a noticeable slowing down
Of activity both in the bond and stock
markets today.
Whether or not bonds are through
for the time being with the process of
adjustment to the lower interest rates,
it was evident that the violent pace
set during the last two weeks had
begun OF tell. The high prices were
maintained pretty well. but there was
an increasing sentiment of caution
and an unwillingness to follow the
market any further up.
Nevertheless liberty bonds made
new high for the year and SO did some
of the foreign government issues and
a number of the corporate issues.
From the outset the share list moved
with great deal of uncertainty. Va
riouS railway stocks, notably Canadian
Pacific, Union Pacific and Great North
ern preferred, went higher. Baldwin
Locomotive, American Tobacco, Stude-
baker and several minor specialties
were bid up again. BUT the genera.
list lacked the buoyancy of other days
While realizing sales were well taken
they were, nevertheless. large enough
to check operations for the rise IN
most directions and to bring about
tendency toward reaction.
Sears, Roebuek & Co.
Sears Roebuck's decline all the way
down from par and above has been a
record of denials of unpleasant develop
ments impending. Each time these de-
malls have fallen fiat and the stock has
sunk lower than ever. 1t might have
been predicted confidently that the re-
port of new Sears Roebuck financing
would be denied. But when one of the
news agencies this morning came ou
with Chicago dispatch, quoting un-
named officials of the company to the
effect that no new financing was being
considered, it was not followed by the
slightest rally. On the contrary. Sears
Roebuck common which was then sell
ing around 81 began its downward
plunge through 60. The essential poin
about the company's situation is no.
the question of new financing.
The main thing is that on account
of the depression in agriculture, Sears,
Roebuck, in common with other farm
ers supply cocerns- is rot doing
enough new business to be able to liqui-
date, except very slowly. its current
debts.
Under these circumstances. the
street reasoned today, pressure might
be brought to bear from banking
quarters, to omit the preferred divi-
dend altogether. Inferno tional Har-
veSter was Influenced unfavorably by
the weakness of Sears, Roebuck
shares
Tire Shares Better.
Most of the tire stocks were helped
by the figures given out this morning
regarding the financial status of the
Goodrich Company. in the first nine
months of 1927 inventories were re-
duced from s12.00a,0O0 to $3S,000. 600
that Is, nearly cut in two. More than
SEA, 100000 has been paid Off in bank
loans with the further prospect that
the company will be entirely free of
debt by the close. Of the year. Cur
rent assets as of September 30 We're
S6i.510.a00. as against current liabili-
ties of sl1,77u.000.
During the last two months since
these figures were drawn up there
has been a further increase in cash
from S2.23S,eU to $3.50u,006 and 4 fur
ther decreass in bills payable from
s3.9s4.0oO to s3.1G0.090. Earnings for
the year. il was given out viii make
reduced volume of business during
the first six months OF 1921.
Tobacco stocks.
There was a sharp ruu-up in the
high priced tobacco shares particu-
la,rly Lorillard and American To-
bacco. Tobacco Products got across
So again.
The earnings for the first eleven
months OF this company have run
well ahead of a year ago. The situa-
tion in Retail Stores is decidedly bet
ter than the street has been led to
believe. After paying the full per
cent dividend the company will have
Il surplus at the close of 1921 quite
SubStanti3ity above that at the close
Of 1920.
Last years surplus amounted to
Si,I3U,0e0. On October 81 last IL
stood at s4.570.n0o. and this did not
take account of the last per cent
dividend which has been declared on
United Cigar Stores and will be paid
into the treasury of Retail Stores i'll
time to show in the 1921 statement.
United Cigar Stores IS doing A larger
business than ever. and will materi-
ally benefit from the new profits tax.
1t is estimated that it will save
through the new tax and reduction
s3,0Gp,oo0 year
International Paper.
Weakness in International Paper.
which has been very apparent for the
last few. days, was taken to mean that
the market for the stock was getting
ready for the announcement of
another cut in newsprint prices when
the next schedule is given out.