Evening star., 1921-05-12
WALL STREET L|S[0
SHOWS DECLINES
Motors Are Vulnerable.
Steel Shares Weak, With
-
Steadying Trend. "
BY s. +. WEST.

We" loNh. May iS.-LOhtluUeQ
weakness in shares OF industrial COR
porations which are not yet through
with their trade adjustment, and
equally decided strength in the shares
of companies which have passed
through their worst and written of
their losses, were the features again
in the market today. Steel stocks, /.
after further decline which carried,
Republic and Lackawanna down close
TO the low prices of the year. were in
cllned TO rally. But weakness persist
ed In the motors. motor accessories and
some of the tire shares. because, as IA
now well known. the results so far in
May have not borne out the promising
indications of March and April in the
automobile trade. 90
Railway shares. which had been bid
UP quite strongly in the market last
week. came down over good part OF
the ground gained. The Mexican oils
had another characteristic break on a
fresh crop of unfavorable reports re-
earding conditions in the Mexican oil
fields.
The weakness in these directions found
the rest of the list far less vulnerable
than II had been under similar circum-
stances a month and two months ago.
Copper shares held up we'll, stocks Of
the American oil companies were con-
the leather and woolen trades stood their
ground and gas company stocks at one
time were bid up sharply.
All these were cases where industrial
readjustment has run its course and
where either recovery has set in or the, D.,
worst that can reasonably be expected to ,
happen has happened.
Gain in Gold.
No change occurred in the Bank ot
England's rate and none had been ex-
pected. The reserve ratio rose from
1890 to 14.o5 on the week, partly as the
result Of large repayment by the Brit 5,
ish government to the bank and partiyt
because of an increase of ten million
dollars in gold.
The fact that this addition to the gold
stock could have occurred in face of
British shipments of the metal to the
United States was decidedly interesting
1t showed that England as well as this
country is beginning TO feel the effects
of the initial settling of debit balances
by the continental nations.
German marks were in demand again,
their advance rejecting expert judgment
that the German reparations bonds will
be offered on attractive enough terms TO
be gradually distributed to the inter
national investment community. French
francs were again very strong, as they
were bound to be under the clrcum-
stances.
With the first step taken toward lqui-
dation of German and French indebted
ness, it is logical that exchange should
improve.
Utah Copper Dividend. .rl
While the next dividend on Titan
Copper will probably not be decided '
upon until the directors actually get:
in the meeting, well informed opinionn
is inclined to look for the regulap'
distribution. The idea is that Utah
paid out only a small part of its large :
war profits to shareholders ana tnat
in consequence it is only fair 10 ln+
yestors in the company 10 make an-'7
other draft on surplus with the nope
that earnings will improve before to
comes time to act upon the DIVIDEND
again. Should the Utah mine not start
up and produce an adequate revenue
during the third quarter OF the year, =
the dividend would undoubtedly be
passed.
Gas Shares Wanted.
Gas stocks were again in demand,
and continued to be well taken, even
with most other things going down.
This move has a very solid basis IN
the reduction, present and prospec-s
tive, of operating costs which have tod
be considered along with the fact that
nearly all these concerns have been,
allowed to raise their rates very con-
siderably over the old schedules. 80
Consolidated Gas shot across 90..n
WhlCh was the tQulVditHt VI
the dividend having come Off the price,
only yesterday. This company's'
operating position has been greatly
helped by the decline in oil prices.
There is talk of Peoples Gas going
on per cent dividend basis in the,
fall The street remembers tho
statement made by the president or
this company some time ago that he
would be very much disappointed II
dividends were not resumed withln .
year. Laclede Gas has been NOV, ,
ing up rapidly on buying inspired by
confidential information regarding its
earnings. There was a revival of in
terest in Brooklyn Union Gas and in
North American. The last nametf
earned it's dividend nearly twice oVerkl
in the calendar year 1920. and IL is eX-
pected to do fully as well this season.
International Harvester.
The financial district was in re-
ceipt of word from Chicago today
to the effect that a substantial cut
in the selling prices of harvester i'm.
plements would be announced in the
near future. This report said that ,
the International Harvester Company
would be the leader in the slashins
of prices, hoping in this way TO get
rid of some of its high cost products. =.
However, it was considered doubtful
if a cut at this time would stimulate
any new buying for the customers of
the International Harvester Com
pany. The farmers are in just as bad
position financially as they were
several months ago and are not able
to buy. Officials are said to be OF
the opinion that buying will not come =,
in to the harvester trade until next y
spring. al the very nearest, and it is
doubtful if it will develop 10 any great
extent at that time. The few company
plants now running are being operated
on reduced time and these are eX-
pected to be closed down soon. In
addition to the fiattening out Of the 4
domestic business the harvester com
pany has suffered severely in the
slump Of foreign business. n. b..