Evening star., 1922-05-01
OILS AND MOTORS
!. !. LEAD THE TRADING
investment Operations. Show
Less Activity-SteeI
Merger Outlook.
BY STUART p. WEST.


By Special Leased Wire to The Star.
NEW YORK, May 1.-Nothing de-
veloped over Sunday to provide the
general financial situation with new
incentive.
The Genoa proceedings meant little
while the Russian replies to the pro-
posals of the allies remained in doubt,
this being the most critical point. now
at issue.
The foreign exchanges. where po-
litical developments are most clearly
registered, reflected the prevailing
uncertainty by moving scarcely any,
with the exception of French francs.
cry, and as the pressure against the
franc let up the selling of French
government bonds. which was one
of last weeks noticeable incidents,
likewise stopped. :.
Both in bonds and in stocks the
speculative sections were more i'm
portant today than the investment
section.
In the bond market it was no longer
libertys, foreign governments and the
higher grade railway mortgages which
took the lead.
These groups held their own well
up to the highest of the year, but
were not inclined to gain. The ad-
vance converged more particularly
upon more speculative issues, like the
New York city fractions.
So, too, in the stock market the buy
ing was keenest not in the preferred
industrials and standard dividend
paying rails, as it has been on ac-
casions where the investment impulse
was most prominent.
- It rather centered upon such purely
speculative stocks as the independ-
ent steels, the motors, the American
oils, the shipping stocks. the coppers
and the rubbers and tires.
Following. the approved fashion,
these several groups were not taken
up together, but one at time.
1t was the'same sort Of market as
that of a week and two weeks ago,
with the important exception that
moderate and not accompanied by the
manifestations of popular excitement.
The outside public was a factor, but
it was public made more cautious
by last weeks sharp check.
Still I'm the Dark.
Wall street was still in the dark
regarding the terms of the much
discussed merger of steel independ-
ents. but the mystery was a help
public Iron and Steel and Lacka-
wanna Steel in precisely the same
way as it was two decades ago in
Federal Steel, Steel and Wire and the
others which afterward made up the
United States Steel Corporation.
The components Of the Steel Cor
poration were taken in at such gross
ly inflated prices that when the
merger Junior stock came out. 1t de-
clined in the market from above $50
to below 50 a share, and it took fif-
teen years of careful saving to
squeeze out the water and give the
U. S. Steel shares good investment
rating.
1t would be surprising II the ne
gotiators of the new steel merger did
not profit from this lesson of the
past.
at the close of the last week and
again today reflected the gradual i'm
provement in the trade. and in the
Of the strongest and most active OF
the group, was discounting the very
favorable report for 1921 which is
expected this week. Kennecott's
position is especially good, both from
the financial and operating stand
points.
Kennecotts equity in Utah Copper
has been placed at around $137 ,000,-
900, including its ownership Of over
81 per cent Of Utah Copper, and be-
sides the $26.O00,000 net quick assets
equity in Braden of about $31 1000, 600,
and in Motherlode and Alaskan prop
critics.
Persons who are particularly in
terested in the coppers look for a
steel consolidation has gotten fur
ther along, of at least three of the
copper companies-Kenneco Chile
and Utah.