Evening star., 1922-06-19
Stocks ARE FIRM
ON ADVERSE NEWS
Shows Benefit of Recent Re-
action-Spurt in Mexican
Petr0Ieum-GainS.
BY STUART p. WEST.

NEW YORK, June l9.-1t was a rea
sonable observation to make recardir.
today's stock market that had the pc
! sition not been very much strengtheneu
by the decline of the previous fortniga
II would not have stood up the way
did against outside Incidents which o.
dinarily would have been disconcertir-
There were two important happeu
lngs over the week end One WAS H..
formal notice given by the ralwa'
/ union chiefs to the labor board that
the vote amOug the employees was
favor of "A strike il would be put int
effect on the first day of next month
Ihe other was the continued Sey6
decline in sterling and continental 9.
changes on selling, which originated ~
the other side of the ocean and VIII
had had its influence upon rates befo-e
New York was opened for business.
Not Serious Influence.
The strike threat resulted in a little
selling here and there. especially in low
grade railway shares which have re-
Gently been the object of pool specula-
| tion. But taken as whole there vas
no weakness to speak of in the railway
list. and The rest Of the market was
wholly Indifferent
Several times before in the last few
years the country has been confronted
with 2, 'nation- wide rail tie-up'' only Ia
find that in the end nothing Of the sort
Inaterializ-d.
/ Doubtless this was a reason why Wall
street was not more concerned about
| the matter today.
! The more persuasive argument was.
| however, that strike brought about
| by the refusal Of labor unions to accept
F.. the findings Of d government body. SCI
| up By IL for the purpose. and on which
| representatives Of the public have their
| say as well AS those OF capital and labor.
/ cannot command support.
| sterling at sS4.40.
! Sterling exchange which only q
/ little more than a week ago reached
| si.j1 dropped below the 81. 40 level. :,
/ net loss Of cents in the pound from
SATURDAY. French francs at $50 wer'
i off over a half cent in the frar'
within a week and were down near''
| two-thirds on the entire grould
gained since the first Of the year
! German marks almost touched tht
/ absolute bottom.
! 1t Is apparent that France is nu'
| thoroughly aware of what the aba
Comment of the German loan mean-
| for the reparatiUns program. Th'
latest suggestion emanat!nE frU1
| French Souces, quite a. much AS from
Germany. is for "a loan Of much sma
! Ter dimensions than the one viii
: the recent Paris conference had i.
: view. This Of course. would bo
! mere drop in the hu"ket. postpon1'-
) tn" crisis for another few mont
{ perhaps. bHi that is all.
7 Spurt in Mexican "Petc.''
! \ sensational advance in McNIcar
. Petroleum was the feature OF the IaA
! in the stock market.
/ To what extent this represented '
squeezing of the short interests. aru
/ to what extent il was due to re"
l.. lf...l ff
+ the company. WAS matter Of doulf.
II il is true that an entirely neN
j producing territory has been open'"
! up 10 take the place Of present well
! which. within year or so, VIII rut.
i out. even such "A jump as the stock
! has had since Thursday would not b"
! excessive.
i At all events. the punishment in
/ ficted upon venturesomc short sen
| ers in Mexican Petroleum had Its ei-
| feet upon the short interest else
where aud as the day went on there
Was "a rush to buy back contracts
! for the decline in Studebaker. Bahi
win Locomotive and other leaders.
Along With this Went a resumptioi
! of pool operations in some OF ~.
: Anne ricdn oils.
! Mexican Petroleum.
! The big jump again in Mexican Pet
| today was reminiscent Of the way th'
! stock used to act when IT was hay
! ing its great upward swings IN th'
market of 1919. Whatever may b.
! the truth regarding the suppose
predicament of short interest, tn
| essential fact is that d lot OF ne"
! buying has been going on in Mexican
/ Petroleum and has materially re
duced the fioa ting supply. rms ne"
! buying has been encouraged cnieIf
! by the latest development WORK ~
+. fields hitherto unexpected. This ne"
! drilling has not gone far enough 7"
warrant positive conclusions. but II
has laid the ground for hope that the
! worry about exhaustion or oil Weilf
! in the present territory may soon o.
! over At the same time the marke'
! is reckoning upon very 1aNoraol'
: reporr for 1927. due at any tune no"
and. il is also figuring upon the con
; fereuccs with the Mexican hnanC'
I minister. resulting i'll some amellorf
ton in thc Mexican oil taxes.
Rails Little Changed.
RAILWAY stocks were not n"ticeabl
sensitive to the action of the hcaG-
: of The railway unions in notifying IN
I.Iur Board that natlun-Mld
strike was certain. beginning July J.
# III. vote now being taken amont
the men is in favor. a. appears pra'
: really sure There may have been
: l;ttlc selling on tins news. but II VA
TOO slight 20 be of consequence IN
: principal effect of the strike threH
I was tu keep traders away from RAJ
! way shares altogether and cauS'
| these 10 be unresponsive TO the IN
movement in other directions.
Missouri Pacific preferred W.
! heavy again as it was toward IN
i close of last week, evidently for IT.
| reason that the uncertain iabor oul
| look is likely to delay action on m
dividend. which has been the ma
, incentive for speculative operation
/. all along -
! seryshle in low-priced issues OF ia
,type Of Kansas City southern
: Louis Southwestern. Chicago Gre"
! western and Wabash. on the othe'
hand. Reading felt the effect OF sh"r
/ covering.
studebaker.
I If has been estimated that If stud
! baker booked no more orders d9Flh-
1922 il would show earnings OF Az
ipr,xinatelS s20 q share ON Inc con
mon stock The company has unille
! orders for. ~. .00D cars. New Duslnef~
in the second half year is not eNpect
ed TO be as good as for Inc hrst -
I months hut if the remainder OF th'
wear brings Studcbaker only monel
ate volume earnings for the run ?e"
yyould he about $50 on the comm"i
! The company has slS.00o,O0O In cash
and discounts all its bills
Corn Products.
With two of it's largest plants run
ming while two others are sh"t
down. Corn Products is operating AZ
about go per cent of capacity. Earh-
ines for the quarter now drawing ="
IT, close are expected to show d.
crease from the net income OF t'
first three months. In that peri"u
tannroximately $3.50 was earned "ii
I of stock