Evening star., 1923-05-15
FURTHER ATTACKS
WEAKEN STOCKS
Steels, Studebaker and Bald
win Under Heavy Pressure.
Can Strong.
BY STUART II. WEST.

Special Dispatch to The Star.
NEW YORK. May 15.-In today's s
stock market there was the custom
ary quiet settling back of prices
after a decline which has been sud-
denly checked by such a sharp rally
as Mondays.
There are two reasons of tech
nical nature for what Wall street
calls this secondary reaction" In
the first place, enough short covering
has been done to partially remove
ward turn. In the second place. in
vestors, large and small. who were
drawn into the market by the break
at last weeks close are not disposed
Monday, all the way from to 5
points.
Market Support Lacking.
Consequently there was nothing in
the market today upon which to sus-
tain and continue the advance of the
previous day. Prices opened steady.
remained uncertain for a half-hour or
so. and then fell off. There was no
selling of Importance, however. and
trading grew dull on the reaction.
Bethlehem Steel, after an early raj
ly to 30. came down over a point, and
so did steel common. These, with
Studebaker and Baldwin Locomotive
were still the favorite selections of
operators for the decline. American
Can, as it has been right along. was
the most consistently supported in
dustrial. 1t crossed SO in the first hour
where it was up six points from last
Saturdays low, came down 2 points
then quickly hardened again.
Oil Stocks Improve.
California Petroleum was the lead
er of the oil stocks, and taking the
oils as a whole, they continued to
show evidences. if not of a complete
ly sold-out condition, at least Of a
greatly improved market position
People of means who sold the oils
10 and 10 points higher have been re-
purchasing during the last week. In
the belief that the measures taken
to curtail the production of low
priced California Oil will succeed, and
will thereby put an end to the
present over-supply in the Industry
some activity for while on re-
vival of dividend talk. There were
very few features. however, in in
dividual share movements.
For a while in the early afternoon
buying operations continued in a few
stocks, notably California Petroleum
But toward the beginning of the las,
hour a new attack was lost agains,
the steel stocks. in the course OF
down to it's low under 54. Steel Com
mon below 9S and Republic Iron and
Steel balow so. This had what was
evidently the effect intended OF dis
turbing the entire market. Stude-
baker sold below Ill, where it was
off more than points on the day
and Baldwin came down over points
But there was no such general weak
ness as had attended the downward
swings last week. In most other
groups the decline was moderate, and
support continued to show in the
stocks which have held up best dur
ing the last few days.
Trade Reaction Studied.
1t will be some time, of course, be-
fore it will be possible to get an ac-
curate line upon the extent and dura-
ton of the present traue reaction
In the oil trade, which was the frs
to show signs of overproduction, II
the measures outlined for restricting
shipments from the California dis
tricts are carried out, it should no.
be long until overproduction is cor
rected. This expectation is supported
by the fact that the unusually colo
spring has held back consumption
and that the season of maximum de
manu for refined oil products is now
approaching. 1t has been evident fol
a week that the stock market takes
this view, for the price-cutting an
nouncements have had little effect
and oil shares have come back as
readily as any other group when the
general list has had it's rally.