The Washington herald., 1921-03-12
BEARS ATTACKS
CAUSE BREAK IN
: STOCK MARKET
Industrial and Railroad
Issues Drop to New
Low Levels.
OIL SHARES WEAKEN
Transactions for the Session
Were Largest Since
January IL. ,

NEW YORK. March 1i.-Fresh at
tacks by professional bear operators
which induced renewed liquidation
caused a sharp break In the stock
market today In which the prices Of
many industrial and railroad issues
declined TO new low levels for This
movement. Transactions for the
session totalled more than I.oeo. 600
shares and were the largest since
January IL Of this year.
Weakness was especially pro-
nounced in the oil shares, Mexican
Petroleum declining more than II
POINTS TO the lowest price recorded
since September. 1913. Pan Ameri-
can was also offered literally at Gle
expense Of price. Railroad shares
declined from l TO , points while
the industrisls lost all the way from
2 to 4 points.
Brokers reported that except for
shouts there was practically no buy
ing power. One large house was a
heavy seller throughout the session.
Its offerings were believed TO repre-
sent the closing out Of an important
speculative account. Some impor-
tant buying. however, was reported
in a few issues. This was particu-
lsrly true with regard to Reading
which although selling at a new
low record was one Of the few isl
sues to show any resiliency at the
close Of business.
Liquidation of railroad shares is
attributed to apprehension of a gen
eraI strike to result from the wage
reductions being announced daily by
the transportation csmpanies Many
people who bought the rails in an
ticipstion OF a substantial rise fol-
lowing the announcement of the
rate increases are now beginning TO
give up all hope and have this week
been disposing Of their holdings.
There is also a substantial amount
Of selling by persons who desire
cash TO pay their income taxes.
Commodity markets were also
lower. Sterling exchange was
strong and call money ruled at :
per cent
The railroad department Of the
bond market continued heavy. es-
pecially Pennsylvania issues. Libsr-
ties were also lower.
The severe break of more than
IL points in Mexican Petroleum was
attributed to the encountering Of
stop loss orders which were in tho
market from $50 down. and to
liquidation by pool which is
understood to have been operating
on the bull side in the issue for,
weeks. Part of the selling was also'
believed 10 have represented the
closing out of part OF a large spec
ulative account on the bull side.
The Waldorf crowd" were busy on
the selling side Of the stock early
in the day.
One depressing influence was the
action OF the directors Of the West
Jersey and Sea Shore Railroad
Company in deferring action on
dividend due at this time. This
property is controlled by the Penn
sylvania and served TO lend color 90
the reports that there is really some
apprehension being entertained
among railroad executives as 20 ths
continuance OF the present dividend
OF the Pennsylvania Railroad Com
pany. II not followed by a strike
the general reduction in wages be-
ing announced by the transporta-
ton companies is considered a bun
argument on the rails.
In contrast with the heaviness IN
the oil shares existing on the nocr
Of the New York Stock Exchange.
Is the hullish attitude on these
shares by London interests.
Mexican Eagle. which is dealt in
on the New York curb but largely
| over-the-countsr. shows strength in
the face OF weakness in other oils.
having advanced while other issues
declined