Evening star., 1923-07-09
PRICES co HIGHER
IN STOCK MARKET
Delaware and Hudson Snaps
Back - Higher Money
Slows Up Trading.
BY STUART p. WEST,

bf STUART T.. WEST.
Special Dispatch 10 The Star
NEW YORK, July 9.-During the
greater part of the time realizing
sales in today's stock market kept
ABOUT level with new buying and
short covering. The result was that
price fluctuations were comparatively
small. The better feeling in evidence
at the close last week, was still mani
fest. and the indications were that
the recent bear movement had been
overdone
The report on untitled orders of the
United States Steel Corporation will
be out tomorrow, and as compared
with previous months, will be some
whatsunfavorable. in that it probably
will show larger falling off in new
business as against shipments. This
consideration held back not only steel
common but the independent steel
stocks well.
Much News Discounted.
But no longer was there the same
sensitiveness to advices from trade
centers telling of diminishing activ-
ity. The seasonal fall-off has begun
in the automobile industry, affecting
motor accessories and the tire busi-
ness. Owing to the recent price cuts
earlier estimates regarding what the
rubber and tire companies would earn
But all this, as today's market showed
had been taken into account by the
30-point averake decline in stocks like
Kelly Springfield and United States
sure against these stocks and the
shares of motor and motor parts con-
Germs were not affected.
The sugar trade. remembering the
peculiar operations a few weeks ago
in raw sugar, was inclined to look
with much suspicion upon the two
successive cuts in refined sugar prices
initiated by the company, which has
been most energetic in opposing the
rise of the last twelve months and
has been furthest astray in it's esti-
mates of the new Cuban crop.
Selling In Sugar Stocks.
The latest totals come pretty near
confirming the minimum estimates OF
the Cuban secretary of agriculture
With only four plantations still
grinding the indications are that the
Cuban harvest will not much ex-
ceed 3,6OO,O0O tons. Nevertheless to-
days price cutting in refined sugar
and the lower quotations on Cuban
raws brought some selling into the
sugar stocks
Delaware and Hudson ran UP
sharply, following an interview by
the vice president of the company, in
which he spoke of there being no
reason to anticipate cut in the divi-
dend
Some buying of wabash preferred
attributed to the president of the
road that it was hoped earnings this
year would leave a surplus after
charges equal to per cent on the A
shares. In the rail- group changes
were largely fractional
Stocks of the retail, department
store and chain store companies were
in demand. May Department and
Associated IL
ers. with heavy trading again in
Schultze Retail stores.
Financial Outlook and Review.
The week opened on the stock ex-
change with sentiment a good deal
divided as to the immediate course OF
things. Many thought that after
three successive days of advance the
market would have to fall back again
for no other than technical reasons.
r Others, recalling the way the modern
price movement has worked out dur
ing the last year or more when periods
of sustained declines have abruptly
turned into periods of sustained ad-
vance and vice versa, were inclined
TO take the view that something of
this was in prospect now.
However. these divergent profess
sional opinions were not important.
The main point was that while prices
moved about with much irregularity.
the stock market generally main
der ce which had developed in the
lr.:Ger half of last week. 1t had to
face further reports of declining out
put and falling orders in numerous
trade lines. There were accounts of
price readjustment going on moder-
ately in the iron and steel trade. and
there was a rather sharp Offering
down in quotations on refined sugar
Caution in New Buying.
Referring to the extreme caution
IN new buying, the Boston reserve
bank, in it's monthly review, says
1T would have been really a cause
of considerable alarm if this had
not resulted from the combination
of falling security prices, falling
commodity prices and reduction Of in
coming orders to where these were
a good deal less than current produc-
tion.
In other words, by cutting down
with new business, the essential step
has been taken to avoid any exces-
sive output.
Sterling exchange did little. but its
Bank Of England had accomplished
the stabilization aimed at when 1t
raised It's discount rate last Thurs
day. France and Italian lire were
somewhat frmer, but German marks
sank to 3& ten thousands Of a cent.
California Petroleum.
The continued strength In Califor-
MIA Petroleum new stock TODAY wa
attributed chiefly to the expectation
OF statement by the head of the
company regarding it's oil contracts
1t is understood that something will be
said about a deal with another large
factor in the petroleum industry on
the Pacific coast. 1t has been rumored
about that Union Oil of California
may be. the company. At any rate, the
contract, II 1t is signed as anticipated
would probably mean the sale OF
California Petroleums entire OUTPUT
at a fixed price.
Although no exact figures are
available regarding the current opera
tions of Allis Chalmers. what is
known about incoming business and
output is sufficient to show the favor
able outlook for this company. Allis
Chalmers added decidedly more new
business to its books late in June than
had been looked for.