Evening star., 1922-06-22
STOCKS IRREGULAR;
TREND IS UPWARD
Buying Movement in Rails
SteadieS Market-0iIS and
Motors Feature.
BY STUART p WEST
BY STUART r. v
Special Disps tch to The Star


NEW YORK, June 22-Reduction
of the New York federal reserve dis
count rate from ~ to per cent. ar
nounced after the close of business
Wednesday. had effect on both the
stock and bond markets today. How
ever, this effect was mainly senti-
mental. inasmuch as the outside
money market had long ago sntici-
pated the action of the reserve au-
thorities.
The stock market of the day was
very confused series of price
changes. Opinion Is TO the imme date
vided, and this showed itself in =
great majority of conflicting pro
fessional effort: first on one side and
then on the other. The market start
ed out rather higher. Then selling
broke out in some of the motor and
oil shares. and the whole mark't
for an hour or so was dragged down
ward, but in the early afternoon 4
diversion was created by sudde nly
inaugurated buying movement in The
railway stocks.
Rail Advance Surprises.
The picking up Of the rails caused
some surprise in view Of the uncertain
labor outlook. But in reality il WAS a
logical. If belated response to the state
ment of railway officials belittlinG The
strike threat and expressing confidence
that If a strike does come IL will be
easily defeated.
New York Central was the leader of
the dividend paying rails. The especial I
strength OF Baltimore and Ohio and
Chesapeake and Ohio-stocks Of rtads
depending largely upon coal traffic
opinion in railway circles regarding
the outcome Of the strike in To. coal
industry.
Investment Bonds Feature,
The most important result of the fed
eral reserve discount reduction occurred
in the investment bond market. and this
especially in the market for liberty
bonds. In these there was quite a re-
markable demonstration. Under the
most active buying seen in some time
every one OF the Az per cent loans were
carried to new high prices. Other gov
eminent issues were not, however, al
fected
Company bonds were somewhat
higher. but still. in the case Of both
the railways first mortgages and high
grade industrial bonds were well uu-
der their high price of two months
ago.
Rate Reduction Discounted.
In the money market the lowering z
of the federal reserve rates has bee
fully discounted. Call money was re
ported as rather more plentiful. but
quotations were the same as the:
have been for several weeks past
This was true also of Mercantilc
Paper.
After the violent speculation ru
sterling and continental bills. which
had been going on since the start
IF the week. dealings quieted down
considerably.
The indications are that recent spec
ulative operations in sterling haE,
been Improbable to those undertak-
ing them.
Speculative CrOss-Currents.
Today's market was a tumble OF
conflicting price moments. While
some stocks were being pushed ahead.
others were being offered down. in
dicating the activities of rival specu-
stive groups. oil stocks came dow
sharply after an opening advance.
Chandler Motors weakness was taken
to reflect the bearish attitude on the
general market assumed during the
last few days by the house most in
fuential in the affairs of the com
pany.
Rubber and tire shares we're soft
for the reason which has been point
I'd out before. namely, that some Of
these companies are feeling the ef-
feet of rather strenuous competition.
On the other hand, the new forward
movement launched a day or 50 ago
III Pond Creek Coal. based upon estI-
mates of 81 share on the stock,
made progress whenever the general
market would let ii, and Industrial
Alcohol was bid up sharply for a time
on account of the continued improve
ment in the denatured alcohol bus
ness and the successful exploitation
of the new alcogas.
Mexican Pete Revelation.
Mexican Petroleum's 1927 report.
published this morning. removes what
little doubt there might have been
that the recent extraordinary advance
squeeze of the short interest or an
e;,hemeral speculative movement
The important thing is not 50 much
last years earnings results. althous n
these were sufficiently remarkable.
showing after unusually heavy do
l.reciaticn charges and after the in
creased taxes net profit equal TO
so6S2 on Mexican Petroleum shares,
as against S20.50 the previous year.
What is of more consequence is the
statement by the president of the
company confirming. and at the same
time amplifying. recent Wall street
reports about the important develop
ment work going on in entirely new
fields. The most striking fact brought
out is that the new wells already
drilled have opened up a territory at
least ten times as great. and likely
to be at least ten times as productive,
as the Cerro AZul-Toteco pool.