Evening star., 1923-08-30
DAWSON IN WILD
.. 2O-PO|NT ADVANCE
Chemical Stocks GyrationS
Most SensationaI-0ther
Shares Very Irregular.
by STUART u. WEST.

by STt ART Il. WEST.
Srcrial Dispatch To The Star.
NEW YORK. August 30.-A Sensa
tional jump in Dawson Chemical stock
was the feature of the stock market
today. In the end 1t did not have a
good effect upon the general list, al
though for while it caused some
frightened short covering in other in
dustrial specialties like Corn Prod
ucts, General Asphalt and Houston
oil, where the bears have been reck-
lessly putting out commitments uh-
der conditions resembling those OF
the market in Dawson.
There was no question that the up
ward rush in Dawson Chemical from
81 to 7l-with no sales between 6l
and 7Oa,-was due to demoraliZed
short interest trying to cover, When
temporarily there was none OF the
stock for sale. AS soon as oppor-
tunity was given to bring 1orth d
better supply, the price fell to 9U
within a few minutes and then
moved in orderly fashion.
Inquiry started ut Once.
People, in closest touch with Davi-
sons affairs are very Sanguine over
the future Silicia Jel. They think
that the contract with Royal Dutch
will produce an additional yearly
revenue of at least S1.uoo,oOo, con-
tracts in prospect with other oil com
pauieS would correSpondinEly IN
crease this new source of income.
Nevertheless, the pyrotechnlc III
Dawson stock today was considered
regrettabIe. even by it's friends. II
led immediately to an investigation
by stock exchange officials, who re
Tod l4t he
technical conditions. There are 2lS,OOV
shares of the stock outstanding, ana
the bulk is held by directors and
other insiders. who do not sell. what-
ever the price fluctuations. rms
means a comparatively small floating
supply. and what happened this morn
ing was that stop orders were caught
ON the short side as the stock crossed
90 and had To be executed regardless
of prices PAID.
stocks Turn Irregular.
The general market went higher in
the first half hour. then ran into
heavy realizing sales, which checked d
the advancing tendency and brought
about AN irregular reaction. In view
OF the decline in Texas Pacific Coal
and Oil to around eight, announce
ment that the dividend had been
passed came as no surprise. 1t was
ga reminder. however TO holders of
other oil stocks that the dividends OF
some are quite insecure.
Copper stocks We're weak on the
disappointing action of the market
for the metal which now stands at
the lowest OF the year.
y 2-point jump III st. Paul pre-
ferred at the opening today was set
down as having some connection with
the optimistic remarks of the st. Paul
president on Wednesday. 1t has been
calculated that st. Paul will show
nothing on its preferred or common
stocks in 1928, and will barely cover
fixed charges. However, the result
of the remaining five months may
prove better than expected. and 1t is
considered plus large short interest
which is thought TO be responsible
for the buying in the st. Paul issues.
New York Central Gossip.
The point has been raised again
that some of the large railway sys-
TENS. notably New York Central.
which have reported large gains in
net. have also closely related inter
estS in other roads that will go to
swell their other income accounts.
New York Central has not only done
very We'll so far this year, but prom
iseS to show equal proportionate gain
for the remainder of 1923. 1t is under
stood that the New York Central man
agement favOrs the sponsorship of
the market in the stock of its COM
by conversion of the s per cent de-
benture bonds.
Peak of Car LoadinGs.
The fact that for the week ending
August Is railway car loadings were
at the highest ever, save for one
other week in July, has stimulated
renewed interest in the prospects for
the balance of the year. and especially
in the discussion regarding when the
aXnnPfa1 q +t1
ton of those wcll informed on railway
traffic that the July top will be
ecltpsed late in October, with car
Ioadlngs close to 100000 for a sin
Ele Week. a decline from then until
late in November is looked for
Some observers attempted to ex-
plain the Wednesday market advance
and the further rise today by the
report that Germany was about to
back down in the Ruhr. One or two
of the Berlin correspondents are
very sure that this is so, and they
may be right. but in the meantime
the quarter in which any such de-
Nelopment would be primarily re-
hected would be in the foreign eX-
changes and in the selling prices of
European government bonds. On the
previous day both French and Bel
sian francs had gone lower. Today
sharply, while the Belgian currency
vas stationary.
Heavy Selling i'm Studebaker.
Excitement over Dawson Chemical
subsided in the afternoon, but it had
made Il favorable background for
bulliSh operations in other stocks,
with scant floating supply. One was
Gulf States Steel. which ran up over
4 points. Selling persisted in the
coppers, with Utah under 90 and Ana
conda around 40.
Heavy realizing in Studebaker was
feature in the late afternoon. II
brought to stop speculation for the
rise in the motor and motor acces-
SCry stocks and had an important in
fiuence upon the general market
American Can was bid up for a time
above par. Steel common came down
over a point from its top.
ncIMG re IRR EcIII hn