Evening star., 1923-05-08
SLUMP IN STOCKS
I7PART|A[[Y CHECKED
Short Covering and New Buy
ing Steady Prices-Some
Stocks Still Decline.
BY STUART y. WEST.

Special Dispatch TO The Star.
NEW YORK, May S.-Wall street
proceeded on the theory today that
the violent break of Monday fore
noon marked the climax of the main
downward movement. Prices opened
with some uncertainty and with cas-
ual declines in a few stocks like
Stewart Warner and Stromberg. But
no attempt was made at any fresh
attack. On the contrary the DISPOSE
tion was to cover because of the null
tiplying evidence that during the tur-
moil of the last few days stocks had
been passing into hands capable of
holding them.
Even during Mondays demoraliza-
tion certain stocks had begun to
show a sold-out condition. Notable
among these were American Locomo-
tive, Standard Ooil of California and
Cuban American Sugar. All three
promptly started forward today as
soon as the general situation per-
mitted. The scarcity of the floating
supply of American Locomotive was
demonstrated by its 4-point rally
within less than an hour.
Oil stocks Stronger.
The strength of Standard Oil of Cal
ifornia was again pointed 10 as
possible Indication of a change in
the Standard Oil attitude toward the
market in general The street has
credited this interest with having
been temporarily beariSh. knowing OIL
the price-cutting which was TO come
In the oil trade.
Cosden did better following the
taking over of single block OF
10000 shares at 46a4 The buying
In General Motors, which put the
stock within less than il point of
the years high. was suggestive OF
the same powerful support that has
been in the market for this stock
ell through the break.
Among specialtiSe which were APP
parently receiving support from in
t.uential sources, and which moved
forward every time ths rest OF the
market gave the chance. We're
Fleischmann. Timken and National
biscuit. IN the afternoon, the edge
eing off the covering movement,
prices were shaded again.
More Bogus Orders.
Several stock exchange houses re-
ceived bogus orders for stocks ac-
companied by forged checks in the
mail this morning. One such order
called for the purchase of 400 shares
of American WOODEN and was mailed
L
on Tuesday morning. 1t is believed
that the same gang which pulled the
bogus check game was the same which
was responsible for the fake Baldwin
Locomotive letter some months back.
A block of 10000 shares of Cosder
which was bought at f6S4 during the
early trading was taken for the ac-
count of one of the officers of the
company, according to Il reliable au-
thority. The stock was sold by one
he Interesting +
know who his principal was.
New Bear Lines Put Out.
Trading quieted down considerably
in the late afternoon and the drift be be.
buying in Of short contracts which
had occurred in the forenoon. it was
doubtful if the short interest had
been much reduced.
Many traders favoring the bear
side put out new lines on the rally
The new buying of substantial
character which had come in at the
low points of Monday and today was
loath to follow prices up. Conse-
quently, it was natural that on the
surface the market should have dis
played a hesitating tendency at the
higher level.
Buying of American Can in the re-
Cnt market has been based. according
to reliable information, upon a knowl-
edge Of the remarkable financial po-
sition Of the company. AS far as
business in 1928 is concerned. it is
expected to be fully as profitable as
last years, and American Can is pre-
pairing for a big output. Improve
ments costing about S5.000,000 will
be made this year out OF earnings 81
and 1t is understood that the company
will be able to meet its tinplate re-
quirements without temporary bor-
rowingS.