Evening star., 1923-03-08
SHARP REACTION !.
IN STOCK LIST
Prices Drop Rapidly Before
Support Is Encountered in
Unsteady Market.
ny STUART r. WEST.

Special Dispatch to The Star.
NEW YORK, March S.-The sharp
reaction on the stock exchange today
did not come as any surprise after
The wild performances of the last
week or so in the industrial list
Everybody of experience knows that
when fireworks of this sort are being
set off, conservative sentiment is an
lagonized and distribution of stock
from strong hands goes on.
There was much difference of opin-
ION today as to how far the setback
was likely to go. In many of the late
leaders-taking the low prices OF the
day as compared with the high of the
last week-it had already covered
considerable ground.
Early Drive Fails.
During the early trading some
further attempts were made to put
up certain stocks. Cosden Oil was
one of these, the Maxwell Motors and
IIupp Motors were others. But
these demonstrations were quickly
abandoned as soon as 1t was seen
that the selling pressure was IN
.4reasing in the general list. Once
prices were headed definitely down
ward, professional traders took the
short side and worked aggresslVely
to accelerate the decline.
Baldwin Locomotive. American
Locomotive and Studebaker each
broke points before support was
encountered General Asphalt was
off nearly points from Wednesdays
high. The oils went down easily
with particular weakness in Paclhc
Oil and Phillips Petroleum.
A curious feature was that the
rails, although in the recent market
they have had comparatively slight
advance, yielded as readily as any.
These stocks have been so persistent
~ bulled in brokers' letters that they
which on a day like today was easily
dislodged.
Review and Outlook.
In most of the principal markets
the tendency of prices today was
downward This was true OF the
greater part of the stock exchange
list of investment bonds and to a
less extent of cotton.
German marks kept on with their
recovery at the outset of the day, SELL
ing at 5112 thousandths of cent. as
against A week ago, but later tne
rate came down again. Quite llkeiy
The reaction reflected disappointment
that so far efforts to stabilize the
mark have not involved any change
in the policy of reckless note eN-
pansion The latest reichSbank state
ntent reported an increase OF nearly
100, 900. .0O0,0 900 paper marks issued to
the public. which If not up to the
record for a Single week is very
nearly so.
Real Values Overlooked.
For an hour or so during the fore
noon the stock market had quite a
bit of a shake-out When symptoms
of real weakness developed, support
ing orders were rushed IN ana an
irregular recovery followed 1t was
- t1a Ryct INN
which the market has had since the
increase in federal reserve rates two
weeks ago. There was nothing in
the news of the day to account for
The decline. The speculation as IT
has been conducted for the last fort
night has appeared to cautiously
minded people as altogether exces-
Sive. Judgments of what are real
ralues do not change so suddenly and
violently as to warrant 1o-polnt
happens. as it has frequently in the
recent market. it simply means that
speculative pools are running wild.
New Kennecott Directors.
a change in the directorate of the
Kennecott Copper Company which
will place three members of the Ctah
Copper Company board on the BOARD
of the former is the first step toward
completing the absorption of Utah by
kennecott. 1t was said today that
some exchange of shares on the basis
of one share of Utah for 1ss shares
of Kennecott had already taken place
by big holders of Utah. This offer is
open to other holders of Utah at any
Iime they want to make the ex-
change Three new kennecott direc-
tors will be Charles NJ. MacNenl,
president: D. c. Jackling. vice presi-
dent and managing director and
charles Hayden vice president IN
charge of finance Of the Utah COM
pany.
The low prices on the stock ex-
change were reached around midday.
Supporting orders then made their
appearance and prices rallied sharply
Steel shares were selected for leader
ship because among the lndustrlals
they were the group which in the
market Of the last week or two had
been paying less attention than any
10 favorable trade news. The equip
ment stocks ran up sharply. and
go did some OF the oils and motors.
Railway shares Quiet.
Railway shares did better, but still
failed to show the least enthusiasm
ever the latest figures, for carload
.ngs-those for the week ending Feb
ruary 24-which showed an increase
of 12.445 over the week before and
continued to break all records for
The season. Based upon these car
loading statistics, which so far have
been trustworthy indication, the
February traffic results will prove to
lave been even more favorable than
those of January.
Crossing 1876, American Locomotive
was up points from the low of the
forenoon and stood at a new high
The strength of steel common did as
much as anything to steady the gen
"ral list. but the rapid advance oc-
cured i'll other members of the
group like Gulf States. Republic Iron
and Steel and CrucibIe.
Copyright. 1921