Evening star., 1921-05-10
MOTORS SLEADERS|N
DOWNWARD TREND
Fear of Price SIashing and
Dividend Cutting Causes
Industrials' Slump.
RY STUART =. WEST.

NEW YORK. May 1o.-The industrial
section of the market had been de-
pressed yesterday by the price cut
ting in the motor and tire industries.
which was a suggestion that in one
direction at least the signs of business
recovery had not been sustained. TOD
day there was further decline. hut
this time il was the fear of more diyi-
dend reductions in a. number Of in
dividual cases and varied ANNOUNCE
ments OF new financing. actual and
prospective, that We're the principal
causes at work.
Motor stocks and related issues we've
again among the leaders Of the DOWN
ward movement, looking forward -
other companies following the exam
pie of the Chevrolet and OaK!uul | ia
cutting their price schedules
\ very bad break in American Su-
matra followed the indications unl "a
for some time past that the stock Mas
under liquidation. presumably froIn
sources in touch with the company \
business position. Another reduction
of the Sumatr;L dividend WAS 'alNel
of as also similar action by Cont
mental Can and by at least two Of the
Cuban sugar companies.
New Financing.
A report that Kelly Springfield was
in the market for a new issue OF Sc
curitias was not officially confirmed.
but was nevertheless rather general
ly credited and caused hurried un-
loading of recently accumulated spec
ulatiye holdings in Kelly Springfield
stock. There was also reason to be
lieve that another of the large tir"
companies would be out before long
tI-irh N. ,..t N, hi h,s
announcement by the American Tele i
phone and Telegraph directors that
S9O,ooo.o00 IN new stock was TO br
offered to shareholders at par. nat
urally had a disturbing effect. in view
Of the fact thai the market position
had become some what exposed after
the rapid advance last week.
Inventories StiII Cumbersome.
With American Telephone il was
a case Of providing merely the nor
NAL requirements i'm the way of new
capital and the new stock issue had
been foreshadowed ever since the
dividend was raised. But with the
tire companies, while there was moth
ing unfavorable in their having to
do new financing. it was r. reminde"
that the inventory problem-so much
discussed in the decline of two months
ago-has not. with some companies
at least. been disposed of yet
Coppers show Strength.
The strength in the coppers. which
was very noticeable even while other
industrials were weakest was the
result of further accumulation of
the same sort that has been going on
for the last month. The main in
centtve for this buying. as often
pointed out. is the knowledge that
the copper surplus is rapidly melting
away and that this is bound to show
before long in an upturn in prices
The more immediate speculative ex-
PLANTATION. however. was the prospect
OF a settlement by tomorrow morn
ing OF the German reparations ques-
t1on one of the first results OF which
would be. so it is expected, a very
large addition to the foreign dema nd ,
Tor the American copper metal
Continental Cans New Low,
Continental Can broke through its
low record of both this year and last.
when it dropped under liz. The re-
port for 1920 showed that the I per
cent dividend had been earned, but
not by any very large margin. No
authentic statements have been avail
able as to business conditions so far
this year, but the severe damage done
by spring frost to the fruit crop in
various sections has foreshadowed a
falling off in one department of the
canning business.