Evening star. [volume] (Washington, D.C.) 1854-1972, 1922-09-06
new YORK STOCKS
SLOW AND LOWER
Reaction Past Due and As
cribabIe to Technical
Causes.
BY STUART p. WEST.

| III
| NEW YORK. September 6.-Explana-
ton for the selling which came into the
stock market today lay in conditions
within the market itself rather than in
anything on the outside. Outside news
| was certainly not unfavorable. II any
thing, it was favorable.
| Latest figures on the shopmen's strike
| indicated very substantial gain in the
number of men at work compared
even with a few days ago. on the
eastern roads the average was placed
! close to so per cent.
| What further information there was
| on the subject of German reparations
was more hopeful. and il was duly re-
| fected in higher quotations for both
| French and German exchange. The
franc sold above .0790 again, as con-
| trasted with the recent low of 0..45 a
| In short, IL could not be said that any
| happenings in the situation either at
home or abroad could have accounted
| for the selling movement on the stock
| exchange.
Causes Are Technical.
| Reasons for such decline as oc-
! CURED were wholly technical. For
! over a week the market had had no
| reaction worth speaking of. Day after
| day individual stocks had been push
| ing forward The downward trend
| today was certainly due on the well
| understood principle. therefore. thai
j no speculative movement can go ON
/ for long in one direction. without at
| least some temporary interruption.
| One version might have been that
| prices, having stood up so well during
| the labor crisis, were relapslng no"
| that the strain was over. Another
version might have been that the
market was experiencing the familiar
! speculative phenomenon of selling on
| the good news" of the stock settle
ments. But, after all. it was the rule
\ of reaction following advance which
| accounted better than anything else
| for the market of the day.
| Mexican Oils Weak.
There was no important weakness
| except in one or two sets of individual
stocks Mexican Oils broke rather
| badly at one time on the revival by
\ a Standard Oil organ OF the charge
| which struck such terror into the mar
ket a year ago, that new production
in the Mexican fields was far from
! keeping pace with the oil capacity
; that is approaching exhaustion.
Shipping stocks were sold on the
| recent cutting of passenger rates, ana
the fear that this would have an ad-
| verse effect upon earnings.
| Rails Are Easier.
Railway shares sagged off half
I point 10 d pOIilr anu 'ihoAV " a. -
] rather sharp recoil in the equipment
| stocks But the selling did not in
| crease on the decline, as would have
| been the case had the market position
undergone real change. on the con-
trary. as prices went lower trading
grew less active.
shipping Stocks Weak.
| Mercantile Marine preferred, which
| has been acting badly in the market
| for some time past, had another sink
ing spell today and dragged with II
| American International and Atlantic
Gulf. The only development recently
was the 20 per cent cut in first class
passenger rates announced at the be-
| ginning of the week. This bore out
predictions which Wall street had
been hearing for last month or more
! that the passenger schedules "ouid
! be revised downward.
Mexican Oils.
! The break in Mexican Petroleum
and the other Mexican oils followed
directly very beariSh summary of
the Mexican oil outlook in the cur
! rent number of the Lamp. othclal
organ of the Standard Oil of New Jer-
sey. The opinion was expressed that
! only part of the huge investment OF
! some S500,00O.000 which operating
companies have made in Mexico VIII
ever be restored. Friends of Mexican
| Petroleum made the point that the
Standard Oil organ said the same
bearish things when Mexican Petro-
leum stocks were selling in the MAJ
ket hundred points lower
Mack Trucks.
Mack Trucks common almost
equaled its high. and Doth class
of preferred stock surpassed their
previous best prices today on the
publication of what were apparently
inspired statements regarding pres
ent earnings. For the first two
months of 1922 the company operat-
ed at a loss: consequently its show
| ing for the first six months of S3.JS
a share is not 50 impressive. But
taking earnings from .AIs.'il on and the
! way business shapes up for the rest
of the year. il is estimated that Mack
Trucks, after all charges and pre-
ferred dividends. will have a balance
of $40 for the common in the twelve
months period as whole.
Pullman.
Pullman Company rose to new
high mark following Tuesdays ad
vance of over point on favorable
reports of the company's earnings.
Aside from the revenue derived from
the operation of its cars, the net in
come from car building is said to be
at a rate sufficient to go good way
| toward meeting the years dividend
requirements on the common stock.
/ Financial Notes.
I CLASS j rdllTOduS. II was stated To-
! day for 1922, should show a net oper-
! ating income of $500, 100000. or about
/ 5 per cent on the SlS.000. 100000 in
/ vestment compared with S6l5.000.OO0
/ actual net for 1921. Every month up
! to July 1922 has shown marked i'm
! proyement over the same months of
I last year The estimate of 100000
! 600 for l!s3 is a gain of S2s5.000,000
! over 1921. and of this gain about
: S205, 0o0. 900 had been realized by the
| end of June, SO that gain of only
| sS0OO0.000 in the last half of the
year over 1921 is needed to fulfill
| the prophecy.
The Associated Oil Company of
] California today declared its regular
| quarterly dividend of Sl.5O. payable
october 25 to stockholders of record
September 80.
/ S. 5. Kresge & Co. today declared
| the regular quarterly dividend of Ia
uer cent on the preferred, payable
! October / TO stockholders of record
September Is.
! kelsey Wheel Company today de-
| clared its regular quarterly dividend
! of u per cent on common, payable
| october 20 stockholders of record
| September 90
The following sold ex-dividend
| TODAY: Mackay Companies common
and preferred; Union Carbide and