Evening star., 1923-04-11
VIOLENT DECLINE
'.!f
.:...: :::..: :. !: IN OIL SHARES
,sC tn
Cut in Crude Prices Finds
Z X Wall Street Unprepared.
o.ts,rfe
! Rest of List Unsettled.
ny STUART p. WEST

80 @". ny STUART p. WEST
Special Dispatch to The Star. -.
90 NEW YORK, April 1l.-Another
violent decline in the oil shares was
the feature of today's market.
Wall street had not bee prepared
for the 25-cent reduction announced
in Pennsylvania and the S5 per cent
cut in Kentucky crude oil prices, and
there was a rush to unload these
stocks which broke down all re-
sistance.
Sentiment regarding the oil trade
seemed to have undergone reversal
over night. Instead of the optimistic
talk regarding the earnings or THESE
companies, everybody was speaking
about over production and increasing
competition.
were sustained by Houston and Cali
fornia Petroleum, the two which nave
had the largest advance. But the sell
ing was quite as urgent in Marland On
Cosden. Producers and Refners, Phil
lips Petroleum and SkeliE.
Other shares Under Pressure.
The extreme weakness in the oils
necessarily afforded rather severe
test for the market as whole. Un.
der this test parts of the list stood
up we'll and others not.
One of the best supported sections
was the sugar stocks, and here the
developments of the day were distinct
iy bulliSh, including a further rise 10
new high levels in sugar prices and
Tresh confirmation OF the lowered es-
Inmates of the new Cuban. crop.
During the greater part of the time
the steel shares did we'll as com
pared with other groups, and so did
most of the rails. Canadian Pacif1C
distinguished itself with a jump to
$50, where it was only half poin,
away from its highest of the year
There were evidences Of special buy
ing operations also in Pere Marquette
Pittsburgh and West Virginia and
Wabash A, operations which were
only ready to show. however, when
the rest of the market gave them tDe
chance.
Tobacco Products issues acted in d
manner to bear out reports, believed
to be trustworthy, that new interests
have entered the market in these
stocks.
Todny's Financial Review.
The stock market today held the
center OF the financial stage and the
whole story of the market centeret
in the reduction in oil prices in the
Pennsylvania and Kentucky district:
and the consequent break in the oi
shares.
This episode, however. was mucf
more important as an immediate fac
tor in speculative calculations thar
it was as Il consideration bearing
upon general business conditions.
1t has long been known that OF
production on the Pacific coast was
excessive and the cut in prices an.
nounced Tuesday by Standard Oil N
California occasioned no surprise
But it did never the less constitute &
threat of increasing competition fol
the oil producers east of the Rocky
mountains and this undoubtedly wa:
recognized in the action of the Penn
sylvania and Kentucky oil interest:
today.
At the same time while there is such
cverproduction in oil fields as exists in
the California region. it is fac
that recently output has got ahead OF
today had the additional purpose OF
correcting this condition before ii
became really serious.
Wall Street Features. .
Martin Parry directors next week
are expected to increase the dividend
from the present 50 rate to SO annu-
ally. Martin Parry is reported do
ing an excellent business but the
main reason for the strength in the
stock is the dividend prospect.
The expectation is that White Mo-
tors for 1928 will report earnings al
1floSl uouDle The net income Vi Ap-
proximately 81 in 1922. Last year the
company was operating on an aver
ago of rs per cent of capacity, while
now it is said the plants are practi-
cally at full capacity. The attention
which has been directed in the several
months to the securities of other
leaders in the motor truck field has
left White more or less out of the
public eye. Moreover White has not
had the advantage of strong sponsor
ship in the street, as has Mack Trucks.
After nearly a week of decline ster-
ling exchange recovered. 1t was two
cents in the pound above the Tues
day low. Francs were stronger also,
and marks continued just under As
1000 of a Cent-the approx innate fig
ure at which they are supposed to be
'pegged.'
Strong Spots I'm Afternoon.
There was further heavy selling of
International Paper despite the as
surance by the president that condi-
tions in the news print industry have
been very much improved. It Is hard
for the street to get over the $4,000
600 loss for the last two years
In the early afternoon the market
steadied all around and here and
there strong spots stood out One of
these was General Motors. In which
buying has been going on quietly for
some time, induced by highly favor
Is earning. Dupont stock. as repre-
senting the big interest in General
Motors, went up sharply.
Independent steel shares. which had
been noticeably strong all through
the early selling, came down In the
steel common held firm