Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1922-02-09

HOLD INTEREST
IN STOCK DEALS
Profit-Taking in Industrials
and Rail Buying Demon
stratiOn of Interest.
UNSETTLED TONE RULES
BY MONITOR.
Special to Indiana Daily Times
md PHILADELPHIA Public Ledger.


contained two trading features of interest,
one consisting of profit taking IN the in
dustrials and another of a buying dem
Onstraton in the rails. 1t should not be
assumed from this that all of the indus
trials were weak for in a few issues, such
as Studebaker and Chandler, the shorts
appear to be in an uncomfortable posi-
ton. Generally speaking, however, the
tendency in this quarter of the market
was reactionary, although losses were
confined largely to fractions. Examples
of exceptional weakness were furnished
by Atlantic Gulf, United States Food
Products, International Harvester and
few other issues.
The profit taking in the industrials
probably was facilitated by the strength
of the rails, as holders of stocks were
inclined to remark the activity in the car
riers as more or less of a movement to
aid distribution elsewhere. Northern Pa
cific established a new high level for the
year, and there was good buying of St
Paul preferred Chicago and Northwest
ern, Chesapeake & Ohio and Missouri Pa
cifc preferred. The gains were not fully
maintained, however, and some Of the
rails even closed at loss for the day.
The unsettled tone of the market, for it
may be justly called such, was due in
large measure to reports from Washing
ton TO the effect that the House Ways and
Means Committee favored a tax of one
fifth of L per cent on stock and bond
transfers for the purpose or raising
portion Of the soldiers ''bonus" require
ments. 1t was authoritatively stated that
the chairman of the committee favored
the tax because he believed it would be
popular" and that after the meeting of
ha bo fO
ssthe tax to transactions in cotton and
grain contracts had met with favor. The
feeling in financial circles is that meas
ure of this character would be a poor
revenue producer, as it would virtually
kill all activity in the markets.
The tone of the weekly review of the
iron Age was somewhat more encourag
ing, especially as it made note of larger
buying by the railroads, with substantial
orders both for cars and rails.
Sterling made another new high level,
the explanation for this last squirt being
furnished by the decision of Australia to
repay war advances amounting to more
than s40O. OO0, Copyright, 1922, by
Public Ledger Company.
WALL STREET GOSSIP BY MONITOR.
Professional activity shifted from the
industrial list to the railroads. a move
menL IN the Of. 1dul issues was Il re-
Fiction of the speculative accumulation
which has been in progress. 4 we'll
known professional who long has been
absent from the board Teappeared and
took an active part in advancing the
ru0,atiUn of the preferred stock more
than three points and the common half
as much. " lille the rails and Studebaker
were being advanced. there was heavy
ing brought about great irregularity
verging on weakness just before the
close.
It has been understood that the OBJ
jective of the Studebaker pool for this
move was So This objective was gained
when the stock sold at 965s. The quo
tatiOn remained above 90 only Il short
.lme and under large offerings declined
two points. There was an active de-
mand on the reaction by trades who
had sold the stock short on the earlier
advance.
Chandler Motors just equaled its re
cent high at 6JA. IT, too. felt the re
suit Of profit taking sales and declined
nearly . points. Short covering brought
a smart rally on the close. 1t is I'M
dcrStood that the short interest in this
stock now is larger than at any previous
time, but it is doubtful if this short in
terest viii be driven to cover at once
in the opinion of firms who have watched
the trading. As the short interest is
following, and the shorts will act as
buffer in the event of a decline, brokers
say.
Some weeks ago the St Paul stocks
were sold freely by the professional ele-
ment on the reports of possible financial
DIFFICULTIES in providing for maturing in
debtedness. Official denials were not
taken seriously by the trading element
with the result that a large short inter
l. fHaI
by powerful interests, and it needed
only a little aggressive buying to force
yesterdays movement.
Baldwin Locomotive was one Of the
chief sufferers in the late reaction
There was some evidence of scale buying
as the price approached 101. and pro-
fessiOnals are loath to follow the short
side of this stock in view Of the recent
losses they incurred. There was no news
bearing specifically upon this or any of
the other equipments, all of which were
reactionary during the afternoon.
Only one sale Of Union Oil was re-
corded although announcement was made
of the incorporation of the shell union
oil company of Delaware, with q capital
stock Of 100000 shares of no par
value.
Mexican Petroleum failed to respond to
the announcement Of the bringing in of
a new well which is reported as pro-
ducing $4,000 barrels per day There are
a few hardy professionals who trade in
this stock, but the serious losses entafIed
by it's fluctuations last year have re-
suited in the loss Of most Of its trading
following.
The Independent Denver and Rio
Grande Protective Committee Of which
James II. Perkins is chairman, announces
the following sub Repositories: Merchants
Loan and Trust Company, Chicago; Ma
tional Bank of Commerce, st. Louis 4:
Bankers Trust Company, Denver, and
Hope Company. Amsterdam. Holland.
Directors of the Niles Bement Pond
Company passed the quarterly dividend
Payments usually have been at the rate
Of 1 per cent quarterly. The regular
quarterly payment Of IL per cent was
authorized on the preferred. The an
nua1 report shows a deficit after taxes
pared with a net profit of $1,031, j22 in
1920.
Endicott Johnson sold at 50 on rel
atively light transactions. 1t is under
stood that the selling is liquidation Of
long stock. The selling is induced by
the belief that the stock is selling too
high as a 8 per cent issue, and that
there is no immediate prospect Of an
extra dividend. There are limitations
in quarters familiar with the operations
Of the company that an extra disburse-
ment probably will be voted during the
present year.
United States Steel was heavy all day
without great activity. This was due in
part TO revised estimates Of the untitled
tonnage figures to be made public today.
With practically complete reports from
the various mill center at hand. it seems
probable that there will be little change,
but the action of the stock was taken
to indicate that a reduction rather than