Evening star. [volume] (Washington, D.C.) 1854-1972, 1923-07-05
AFTERNOON RALLY
RETRACTS LOSSES
Score of Stocks Make New
Low Marks in Early Trad
ing-SteeI Crosses go.
BY STUART p. WEST.

Special Dispatch to The Star.
NEW YORK, July 5.-The market
started in today somewhat higher in
the industrial list but fresh selling
soon broke out among the rails, and as
these went down they finally dragged
the rest of the list along. Many of
the speculative leaders made new
lows. Still there was not the same
degree of weakness that there had
been under similar circumstances on
previous days. The forces making for
resistance.
Railway shares ignored the favor
able car loading figures. There were
two especially weak features. New
Haven and Delaware and Hudson.
New Haven stock breaking through
10, while the bonds were undergoing
u virtual collapse, indicated the gen.
eral belief IN Wall street despite
statements made to the contrary, that
the New Haven road will eventually
have to undergo a revision of capital
account at the expense OF the present
holders OF the stock and the junior
bonds.
Delaware and Hudson Drops.
Delaware and Hudson at one time
was off more than points, the stock
breaking on comparatively small
TRANSACTIONS. Some improvement has
occurred in transportation earnings
or this company during the last
month or two, but the showing for
the year so far has been rather poor
The doubtful part in the Delaware
and Hudson situation always has been
the earnings from coal properties and
how far these can be drawn upon at
-
deficits. In 1922, owing, of course,
largely to the strike, there was loss
after dividends of $4,3O1 900. But the
president of the company stated in
January that, lin view of the estab-
l1shed earning capacity of the prop
erty and the temporary nature of the
conditions which reduced the earn
ings during the year 1922. it was the
opinion of the board of managers that
no change in its dividend policy
should be made at this time"
Baldwin and Steel OFF.
The selling of Corn Products Tues
day and again today appeared to rep
resent belated liquidation of specu-
lative accounts of an unsubstantial
nature. Baldwin Locomotive made
a new low under us and so did Steel
common. A few specialtieS broke
sharply. among them Houston Oil,
but strong buying appeared in Stude-
baker around SO, in American Loco
around So, and in New York Central
around Sc. and this buying began to
tell as the afternoon went on.
BY early afternoon most of the
ground lost in the first two hours had
been retraced Steel common came
back across 90 again, and stocks like
Baldwin Locomotive and Corn Prod
ucts. which had been among the
principal weak points early in the
day. rebounded sharply.
Review and Outlook.
The event of chief Importance in
the market today was the advance in
the Bank of England discount rate
from to per cent. This had little
effect. however, on the various price
movements.
The stock market was chiefly &C.
cupied with testing out it's own po-
sition. The evidence was strong that
the buying power had decidedly i'm
proved and. in the general body of
the list, was fully match for the
selling.
The more sterling goes down. of
course. the costlier 1t becomes for
the British government to remit funds
on its war debt settlements to this
country. Hence. the British banking
authorities have at length stepped
in with measure which they hope
will force up London money rates TO
an equality with New York, put a
stop to American borrowing and thus
relieve some of the pressure on the
sterling market.
Railroad Traffic Booming.
There was scarcely time today for
the result of this policy to be shown.
In fact. sterling. while it hardened
somewhat in the afternoon, made a
new low for the year in the early
dealings, and this was accompanied
by a general downward movement in
the other exchanges. in the course of
which German marks and Italian lira
also exceeded previous low points and
record low.
For the third week in succession
railway car loadings surpassed the
million mark. This astonishing traffic
movement not only goes violently
against the idea Of any general fall
off in business, but it points to rail-
way gross earnings in June going
ahead of the remarkable totals of
the previous months. Yet during the
time the market was going down this
morning rail stocks were among the
leaders.