Evening star., 1923-05-14
MOVES IN MARKET
VERY IRREGULAR
U. S. Steel Drawing Special
Attention Among Traders
in Wall Street.
By STUART Il. WEST.

fpecal D.spItch to The Star
NEW YORK, May 14.-Price varia-
tions on the stock exchange today
once more represented the conflicting
operations of rival speculative groups
much more than any real expression
of opinion by the investing public
regarding recent business develop
ments.
Professional operators working for
the decline made all the capital pos
sble out of reports resolved from the
steel centerS over the week end.
These told little, to be sure, that Wall
street had not been aware of before.
Yet they dwelt with more ellphasls
upon the fact that, with the current
excessive shipments over new busi-
ness received, it will not be long be-
fore the railroads. the building n
dustry and other big consumers Will
he provided with all they need TOR
months to come.
Cut Feared In Steel Output.
1t is quite possible that this will
lead after a while to general cur
tailment of steel mill operations and
probably some reaction in prices. But
steel buyers are not loaded up as
they were three years ago with high
priced supplies and contracts. The
railroads announced two months ago
that they were in the market to
spend s1,500.0O0,O 900 on their proper
ties and not half of this sum has
vet been put out. In the building
trades, despite the recent postpone
ments, the current volume of business
Is enormous.
Under these circumstances the
readjustment now going on in the
steel industry. anu likely to continue
for while longer. cannot be re-
garded as virtually serious. Ger
fntt . ,.y,l
stbilities as to warrant the oblitera-
ton of all, and in some instances
more than the entire years advance
in the steel stocks.
There is another consideration. and
this is that the steel trade situation
If not in a class by itself is at least
duplicated in only a few other inn
portant lines. One of these is cot
ton goods, about which good deal
has been said lately regarding ar
rested mill activities. But the cen
sus bureau figures on cotton con-
sumption. out today, show that while
there had been some decrease from
the record breaking total of March
the fall off was comparatively small
The April total was 571.396 bales
against 623.10o the month before, but
compared with 443.5O9 in April, 1922
Retail Trade Good.
In the great retail trade generally
the demand or of any overstocking of
goods on the part of the sellers. This
is a vast difference from the situation
In 1920. Overproduction has not Yet
been corrected in the oil trade, but
with the four successive cuts in mid
continent crude and the three in
Pennsylvania crude-the last an
nounced today-output Will soon drop
to the level of consumption. At least
this was the judgment expressed in
nf he n
the oil shares paid no attention to the
price cutting. Some Of them. indeed,
were leaders in the rally.
Heavy Buying in Can.
Buying of American Can was per-
sistently maintained throughout the
afternoon. Studebaker, in which the
short interest is particularly heavy.
went with rush once it started for
ward. and so did Baldwin Locomotive.
The shorts in the Pan-Americans.
which have not had an cosy time of
IT lately found it difficult 70 cover
two othree points.
The bears succeeded in keeping
Steel common around 9S, occasionally
pushing it below, until after midday.
Then they commenced to beat re-
treat. Bethlehem steel, Republic Cuff
States and other members of the
group were carried along.
California Petroleum continued the
IedU6T OF the AIleTlcdU OILS. lHe
action of such stocks as Cosden,
Phillips Petroleum and Marland Sug-
gested that large interests were TAX
ing advantage of the price cuts in oil
trade to reaccumulate holdings dis
tributed two and three months ago.
Specia1ties like Mack Truck, Mathie-
son Alkali and Timken Roller Bear
ing, which had been carried down
under scattered liquidation at the
close of last week. came back
promptly. The interests handling the
market for Corn Products appeared
to be in complete control of the move
ment of that stock.
in addition to Canadian Pacific and
showed a continuance of special in
spiration on the upside were Pitts
burgh and West Virginia and Pere
Marquette But it was a matter of
disappointment that Southern Pacific
should have made practically no re-
sponse to the 1922 report showing
earnings of over 50 a share, which
permitted over s1O.00O,OO to be car
ried to surplus account after every
deduction. including dividends.
Prices Best in Final Trading.
The leaders closed we'll up to their
best with net gains of two, three and
four points.
One of the features of the late aft
ernoon was the sudden taking up of
railway shares. especially New York
Central and Canadian Pacific. Talk
was renewed of a dividend increase
on New York Central as the stock
crossed So. The market ended
strong all around.
Copyright, 1921