The Washington herald., 1922-09-06
FINANCIAL
MARKET IS FIRM.
Strike Threats Are Disre-
garded by Returning
Traders.

NEW YORK. Sept. 5.-with its
customary disregard for strike
threats the stock market presented
a firm appearance with the resump-
tion of trading this morning. fol-
lowing the double holiday. A good
many traders were still absent from
the floor of the Stock Exchange. but
on the other hand execution Of the
usual weekend accumulation of
orders. plrs those received over the
holiday. served to put fair amount
Of activity into the early dealings.
With the bulk of these orders out
of the way the market quieted down
and the price movement became
more irregular. Railroad shares
were better at the opening, espe-
cially those with a good grain and
coal trafic Rock Island, in partic-
ular..was bid up briskly and good
fractional gains were made by such
issues as Northwestern. Great
Northern. ST. Paul, Union Pacific.
Ntrfolk and western, Erie and
Reading. Selling pressure devel-
oped later. however. and with a few
exceptions, such as Rock Island and
Baltimore and Ohio. and Union Pa
cificy and Norfolk and Western. most
of the early advances were lost be-
fore noon.
Although both coal strikes are
nov practically settled. and the
railroads are apparently getting the
upper hand in the shopmen's strike.
the daily letters which the commits
sion houses send out are taking on
a most subdued tone. Confidence is
still expressed by most of them that
o. the Industrial movement has still
some time to go. but they claim to
see signs indicating that the time
for distribution" is close at hand.
They point out that the interests
which have been instrumental in
bidding up prices have so far given
the public little chance to come in
on reactions. With the better indus
trial outlook and the bond move
meRt slowing down a shifting of
funds from bO Ids into stocks is pre-
d;Cted. with opportunities for
prOfr:takinS on the part Of various
pools.
Trading in Crucible Steel rights
began on the Stock Exchange this
morning. Holders of fifteen shares
OF CrHcible common are offered the
right to subscribe to one share Of a
new issue of $4,000 shares on Sep
ten1ber IL, at par Wall Street to-
day could not agree on an explana-
tiOn of why the stock should sell
off as it did when the Street first
heard of the new stock issue plan
and why il should continue firm
when trading in the rights began
The rights" opened at II advanced
to z and then f1uctuated around s
while the stock held fairly steady
around 9614. With traders willing
to pay = for the right to pay 10C
within a week for stock now sell,
ing at 96H. Crucible appears to be
in for good rise.
-flAt least its followers have conf.
dence in this development. The
stock to a certain extent has fol
lowed the course of American Tele.
phone, which sold off on announce.
ment its new stock issue and
then recovered VIXEN the Street had
time to digest the possibilities OF
the situation.
Announcement that Mexican Sea.
boards oil production on September
was only 10000 barrels. as com.
pared with 20. 700 barrels on the
preceding day. not only brought q
break in the shares today, but fur
nished an explanation for it's recent
gyratiOns on the market. From {
closing price of 2012 on Saturday
the stock sold off to 20 within &
short space of time, and then raj
lied slightly. Mexican SeabOard':
properties are mainly in the TototC
district and a few months ago th'
company was producing about 1Ot
barrels of oil a day The new
however. did not bring a break il
therrshares of other cOmpa nies op
Grating in Mexico. nor did it Caus,
any special strength in domestic
oils as might have been expected
MeTiran Petroleum. in fact. which
has recently come back into tn,
Gmeli&ht as speculative leader
WAS run up over points before
noon and Royal Dutch was ais,
ConspIcUlnUsIy strong. Texas Com
pany and California Petroleum. Or
the other hand. were fractionally
lower during the morning and 9th
ers held close To their previous clos
ing levels.