Evening star., 1922-04-25
ADVANCES CHECKED
BY YPR0F|T-TAK|NG
Many Longs Getting Out Sat
isfied With Profit-lnvest-
ment Money.
BY STUART p. WEST.

NEW YORK, April 25.--The expla-
nation for today's abrupt check.to the
movement on the Stock Exchange lay
plainly enough in inside and not out
side conditions.
For the last week or more the evil
dence has been clear that the big
turnover in stocks and the sharp up
bidding one after another of individ-
ual issues have concealed a great deal
OF what Wall street calls "distribu-
tive selling
By this is meant that farseeing in
vestors and speculative syndicates
who accumulated their holdings when
prices were low, have been satisfied
to draw down profits because they
nave felt that the rise has gone as far
as was warranted either by the cur
rent business recovery or by such
further Improvement as is reasonably
probable in the near future
The effect of this selling had be-
gun to show in the market last week.
In the present periods when. despite
siasm. the majority of stocks were
able to make very little gain. But
today Its results were clearer still.
Investment Money Abundant.
There were two noteworthy Incl
dents to prove the undiminished ac-
tiNity OF investment capital. despite
the halt in the speculative market
one of these was the quick sale OF
the S1cO,Oo0.op0 Dominion of Canada
bonds. put out on flat per cent
basis. The other was the award OF
the S4o,000,00O Az per cent New York
city corporate stock to a syndicate
which bid for all or none on Ale
per cent basis.
The Canadian offering was a highly
important test. first because it was
one of the largest pieces of foreign
government financing yet attempted
in this market. and second. because 1t
was offered at lower rate of interest
than any foreign issue put before
American investors
The New York city f1otation is a
distinct event in financial history. be-
cause there has never been so high
s.,a bid for a ~ per cent obligation Of Of
this sort. In this. as in the Canadian
issue. there is no question of i'm
proved credit standing on the part
OF the issuing body. 1t is wholly a
reflection of the investment situation
where AN unprecedented surplus is
pressing for employment in securities
and has to accept it on constantly
less remunerative terms
Oil stocks Irregular.
The further and quite general ad-
vance i'll gasoline prices this morn
ing had varied effect upon the oil
stocks. Some of the Standard Oil
group responded. notably Standard OF
Indiana, on the curb exchange.
But in most other stocks of COM
panies which derive their main profit
from the refining rather than from
production of crude the news was
obviously discounted.
Outside of the Standard Oils the
principal gasoline stocks are Texas
Company. Cosden, Sinclair and Pure
OIL. All of these four were unaf-
fected.
The most consistent strength shown
by any of the oil shares was in Pro-
ducers and Refners'. the move which
got under way yesterday. Phillips
Petroleum went forward for a while
on intimations that the dividend is to
be doubled.
Central Leather'S Showing.
Central Leathe-'s report for the
first quarter of 1922 was fully as poor
as expected. hut the market for the
stock received the figures with an
expression of relief. in that bad
news" long awaited. was finally out
of the way.
The net income of s22s.334 compared
fayorably with the deficit Of $3,492,O27
in the same three months Of last year,
but 1t compared badly with the show :
ing for the last quarter of 1921, when
there was net profit Of about
$1,O00.000.
After bond interest the deficit fol
the March quarter this year amounted
loss deficit as of March 81, 1922. was
thereby increased to S7.124.035 as
against $6,S93,S1S at the close of last
December