The Washington herald., 1922-01-27
GENERAL SELLING
BY SHORTS HURTS
live STOCK MART
Steels Are Offered on Re-
ports of Difficulties i'm
Rumored Merger.
OIL STOCKS SUFFER
List Registers Declines Of
From One 10 Two Points.
Gas Stocks Weak.

NEW YORK. Jan. 2s.-with ac-
tive trading. short selling became
fairly general in the stock market
today. Steel stocks were offered on
reports OF bitches in the various
merger negotiations, and oils suf-
fered on doubts regarding crude oil
prices, Declines OF I or 2 points
were common in these groups. a
number of losses Of a point or more
occurred In other parts Of the list.
however, gas stocks being particu-
larly weak. Bonds were quiet and
little changed. Call money. after
opening at 4iz per cent. worked M
to 6 per cent during the last hour.
but closed at 5is per cent.
The OIL situation.
Oil specialists are talking about
a glut Of crude oil and refined prod
ucts in this country. and many OF
them believe that this condition
must result in a lower price for
midcontinent crude even before
there Is any further adjustment in
the price OF the Pennsylvania and
other Eastern grades. The motive
for heavy selling Of the oil group
in the stock market today was wall
streets general acceptance OF the
theory of lower oil prices. and the
movement was not without its rela-
ton TO the decline during the frs,
ten days OF this year. The two re
ductions in the price Of Easter
crude resulted in a downward move
ment in the domestic oil shares in
anticipation OF lower midContinCnI
| PRICES. Traders were ready TO claim
| in the event OF such a development
that the market had fully discount
ed il. But on the rally subsequent
to January 10 the oils recovered e
TO ) points and the recurrence ot
/ fear on the score Of lower crude
/ prices has. IL is believed. made nee
I esssry another discounting move.
ment. Under the circumstance
I traders found little encouragement
( in the American Petroleum Insti.
/ tutes report showing a reduction
I OF 1850 barrels in the daily aver
age oil production in this countrs
/ during the week ended January Il
The most substantial losses wcr,
not confined TO the domestic 81
shares. by any means. Mexican pe-
! trolCum went down close 20 ll0. an
Pan American down a point The
glut Of crude oil applies to Mexico
I as well as TO this country. OIL m.r
point significantly TO the fact tina
the source Of Chit oil supply =
Mexico is being confined more arS
more exclusively TO one small h,ld
II is estimated that this field sun
plies fully 80 per cent Of the Mex.
can output OF light crude.
Merger Rumors,
II all the mergers that are Jalkei
about are actually carried throuEf
1929 will go down IN history a. 6
greater year for consultations thar
1901. Negotiations lookin- towar5
merger of steel companies ar
under way and there arc rumor~ -
combinations in the sugar. uopI1-.
and railroad equipments induSirir-
Today brought forth another W'r
ger rumoT. The entrance 81 hauI,
ing house into the management So
the Manhattan Shirt COMPANY has
led to talk OF possible cuusulid'
tiou Of that company with Hhillip.
Jones and ,luctt Peabody Tr'
stock Of the last-nam,d rumrau'
was one Of the yer, few To- SHOW
strength today. advancing Si= point
on small turnover. The rvTnpauE
is reported To have reduced it,
floating Indebtedness - per cont q
year