Evening star., 1923-09-27
STOCKS co Lower
DESPITE B.&0.M MOVE
Studebaker, Steel, Baldwin
and American Can Again
: Under Pressure.
BY STUART =. WEST.

Special Dispatch to The Star.
NEW YORK, September 21.-There
we're so many cross-currents in TO-
days market that during a good part
Of the time it was hard to judge the
main drift. 1t was evident from the
start that the Baltimore and Ohio 5
per cent dividend declaration had
proved another instance of good
news" falling fiat. -
+ Western Maryland Breaks.
Those who have been predicting
better market for the rails were
keenly disappointed with the indif-
ference which these stocks showed to
the sharp rise in Baltimore and Ohio.
Southern Railway common was
almost the only one that was drawn
along at all and this only for short
time.
Weakness in Great Northern pre-
ferred, heavy tone in the other
northwestern rails and a sharp break
in Western Maryland issues more than
offset the influence of the Baltimore
and Ohio movement. There was some
going on from Great Northern pre-
ferred and Northern Pacific to Balti-
more and Ohio common.
+-"'o' Motors Again Pounded. sea-
Motor shares were under pressure
again. Studebaker quickly lost its
gakn of ."the previous" day. showing
that this had been due largely to
short covering. Willys-Overland is
sues were actively sold, the common
ESbreaking through on large trans
IA actions. This selling extended to the
-Pierce Arrows. All assurances that
the present condition of the automo-
bile industry is satisfactory were
brushed aside. The street continued
TO assert that there had been over
production of motor cars and that
this was bound to show later on, even
il it is not apparent now.
Steel Continues Drop.
The ease with which the motor
stocks yielded encourage a renewal
of selling in other directions. Steel
common held up well for the first
two hours, but finally went with the
rest. American Can dropped below
30 again and Baldwin Locomotive be-
low 1l3.
Special weakness In International
Harvester brought forth the rumors
which have circulated periodically
and as often been. denied that new
financing would be needed to carry
the unpaid advances to farmers and
that this would entail unfavorable
The reason for the break in, West
ern Maryland. did not appear to lie
in anything adverse about the earn
ings situation. The street was in
clined to think that it was simply a
case or trying TO unlOdu d Soou Sl1eu
block of stock in a market which
knew this selling was coming
Foreign Exchanges Lower.
II 1t was question how much a
,ffactor the threatening news from
Germany was in today's markets.
Probably it was responsible for the
further reaction on the foreign ex-
changes. although the declines here
were comparatively Slight
But, on the other hand, the cotton
market, which has more at stake than
almost any other in anything that
damages Germany's buying power,
expressed no concern at all.
On the stock exchange there was
some discussion as to what the die
tatorship in Bavaria, the declaration
OF martial law and the discomfort of
the Ruhr population over the Berlin
sovernmsnes3ssurren might lead
to. .. But the, sincerity of this as an
argument for the renewal of the SELL
ing movement was decidedly open to
Grea9 Nerihern Preferred Down.
pwo months, ago Great Northern
preferred established new low for
allHtime when, 1T sold at 81 IL. Today
1t came within two points of equal
ing this record. The powerful pres
sure which will be: brought to bear
to cut freight rates on grain is a
bearish consideration for stocks of
1t is particularly serious for roads
which are not doing so well. On the
basis OF the July returns Great North
ern preferred was not quite cover
ing its per cent dividend requiAe-
ments. What the selling appeared
to indicate was the fear that if
grain rates were cut the Great North
ern would not be able to distribute
as much it is now doing.
Zinc Stocks Depressed.
Further testimony to the depression
In pants af the Emetal trade came to-
day in form of a confirmation by the
president,of, the Callahan Zinc-L lead
Company; that .a1lishiprhents had been
suspended because working on the
lower grade, ores the company was
not able tohrnake money at the pres
ent low prices for zinc, lead and sill
yer. High wages pushing UP operat-
ing costs have been an important
factor.
Heavy buying orders pressing for
execution at the opening caused an
abrupt jump of nearly points in
Baltimore and Ohio, a total gain of Z
points from Wednesdays low: The
question of the proper selling level
for Baltimore and Ohio as a per
cent dividend payer depends upon the
course of market values in general
Tobacco Products stocks, more par
ticularly the A shares, were more ac-
tive at higher prices than they have
sold for in some time.
The weekly car loading figures con-
tinued to give their testimony against
the idea fof any important recession
in trade. The total for the week end
ed September 16 was very close to the
high record made in the last week of
August.
RALLY IN LAST HOUR.