Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1922-01-04


cline but it may be stated without quail
fication that the ramifcations of this
event are in nowise responsible for the
lopments.-Copyright 1922, by Public
Ledger Company.
WALL STREET GOSSIP BY MONITOR.
The year was ushered in on the New
York stock exchange by a series of I'M
favorable developments which brought
selling lin large volume into the general
Hist. that prices did not decline more
EAzaA Al to the large short interest out
az in many issues. As it was,
- from one to five points were dis
s}SEbuteG throughout the list.
q Announcement over the holidays of the
Banking situation in Chicago came not
FSbnly as an unfayorable surprise. but
Aas accompanied by heavy sales for Chi
,,AgO account. As prices declined the
usual sinister rumors We're in circula-
ton and even the denial of the involve
rnent of any New York banks in IT, Chi
cago situation failed to curb the activi-
ties of he rumor mOngers. Not until the
market had closed did the Retn6Nls state
ment appear on the news tickers, state
ment which sets at rest any question az
to the Fort Dearborn situation being
other than wholly local.
Pennsylvania crude oil prices were cut
SOC per barrel, directors of the Kelly
Springfield Tire and Rubber Company
passed the 3 per cent stock dividend due
on the common, there were unfavorable
raports of the action to he taken by
the General Motors directors at their
meeting this week, and 4 considerable
quantity of profit taking all Of which
combined to bring an unusual amount
of selling pressure into the day trading
Domestic oil production is at the rate
of about 100000 barrels daily. Mexican
production is approximately G0O.0OO bar
rels daily. President Benson OF the Tide
water Oil Company said that the reduc-
ton is to bring the price of PENNSYLVANIA
crude in line with that of Mid Continent
field He said that demand does not now
absorb the daily output, and either re-
striction of output or an increase In de-
mand must result if prices are to remain
at their present level.
The motor stocks were tie strong fea-
lures of the early market, Studebaker
making new high above 81, and Chand-
Ter Motors getting within fraction Of 81.
Before the end of the day the former had
lost nearly four points from its high and
the latter about two. Buying of good
character was in evidence in these is
sues. Firms which have been and are
large buyers express the opinion that this
coming year will be comparable to 1918
IA Int utuIhel IDT UlOlOE SLpCkS.
While Mexican Petroleum and some of
the minor oils were heavy in the early
trading there was no pronounced weak
ness until, toward II o'clock when the
Kelly-Springfeld directors acted on the
dividends of the stocks of that company.
The regular 50 quarterly payment was
authorized on the preferred, but the per
cent payment in stock on the common
stock was passed. Then the oil stocks
hF0kn hanlV did Pho firp r1h hor
stocks, Kelly Springfield losing nearly :
POINTS in precipitate decline. With
acute weakness in these two groups Ii
quotation came Snto the steels and steel
industrials resulting in losses of to q
points.
While little has been heard Of the much
discussed steel merger recently, a banker
who is identified with the proposal said
that the work of taking inventory of the
raw materials of the several companies
is in progress and probably W al be fin
ished within a few weeks. Plant and
equipment valuation is we'll known, and
it is probable that a more definite state
ment than has yet appeared Will be made
public soon. 1t is understood that the
companies which probably will compose
the, new combination are Midyale Steel
and Ordnance. Republic Iron and Steel
Lackawanna Steel and possibly one or
two smaller companies. 1t is under
stood that financial plans are being
worked out tentatively on the basis or
$4,000, 900 capitalization.
Buying of an excellent character WIS
reported in American Wool on 4 scale
down. Reports from Boston indicate
t1at the raw wool market is holding it;
recent advance. and there is little in
clinaiiOn on the part of dealers to present
quotations. The company will have its
seasonal opening the latter part OF this
month. 1t is expected that his viii
give q clear indication of the business
outlook for the fir st six months of the
year.
Directors of the American Shipbuild-
ing Company have approved the plan
to increase the capital stock from
S7GO0,OC0 to $15.JN0,0JO to declare an
extra dividend of 20 per cent on the
present outstanding stock, and to sell
10 stockholders at par all of the author
lied increase. the funds from which will
be used TO retire at par a like amount of
per cent preferred outstanding. In ca je
all of the new stock is not sold for cash,
it is proposed to exchange the remainder
for the preferred. share for share.
Railway steel springs made new high
for the present movement at 99M thereby
sub stantiating the predictions of a week
ago that the price would cross that of
Baldwin. The stock sold off very sharp
", on a break in the afternoon.-Copy