Evening star., 1923-06-20
FAILURE CAUSES BIG
BREAK IN STOCKS.
Prices Again CrumbIe as
News Spreads-0pening
Had Been Stronger.
BY STUART r. WEST.


Special Dispatch TO The Star.
NEW YORK. June 20.-Today's fluC-
tuations on the stock exchange re-
fiected the sharp cleavage in profess
sional opinion regarding the imme-
diate drift of things
The better class of brokerage opin-
ion continued to maintain that the
downward movement of the last ten
days was nothing more than n sec
ondary reaction after the rally in the
first week in June and that it did
not mean the beginning of genuine
bear market. Professional operators.
however. who have been making mon
ey on the short side were naturally
pessmistic in their expressions. These
opposing points of view were SHOWN
in the sharp up-and-down swings
which characterized the days opera
tions.
Market Opens Higher.
At the coening the market was
higher and this strength was sus-
taincd for an hour or so. Midway
through the forenoon some OF the
speculative favorites were un and
8 points from their lows of, Mon, f.,
been due chiefly to short covering
and when this slackened bear
traders commenced to get busy
again.
American Locomotive was picked
out ag one of the special objects of
attack. for no reason except that
Il had not had anything like the de-
cline which other industrials had
gone through. Copper stocks We're
definitely weak. although there was
nothing really new in the copper
trade to account for the selling. The
decline in this group did not appear
to be due to conditions in the copper
metal itse'f. but rather to the fact
that this class of stocks had not been
as much Iicufdated during the de-
cline since the beginning of April as
most of the other groups.
Noon Motors At 81 was within only
little over two points Of it's highest
n notable record in such a mark
The stock had EVIDENTLY not discount
cd the extra dividend declaration
The same was true of Packard Motors
which ran up from Is to IA on the
overnight news of per cent extra
In addition to the per cent regular
Failure Starts Selling Wave.
With the announcement of the
Zimmerman &, Forshay failure a sell
ing movement broke out which 70,
an hour or so in the afternoon was
quite violent. Among the specula
tive induStriafs there was losses OF
to and up to points from the
high of the forenoon.
Steel common and Baldwin Locomo-
tive made new lows for the year
American Can below 30 was off Il
points from the high of a few weeks
ago.
One of the sensations was a smash
Ing in Burns Brothers issues the
A stock getting down nearly 10 points
and the Il stock over from where
they were selling the preceding day
In quarters usually we'll informe cd
on these stocks the selling was
sscribed to the failure. There is nc
change in the financial position of the
company: the earnings are very sat
lsfactory. the recapitulation is to
be held up until market conditions
get better. but in the meantime the
president of the company was quoted
AZ saying new common. which is tc
take the place for present shares
VIII pay 2is per cent instead of the
per cent now distributed.
Coppers Very Weak.
The coppers were among the weak
est, with an Anaconda below Al. Ken
necott below 33 and Inspiration
around 80 These represented new
lows for 1928. The steel shares were
better taken care of than most 9TH
ers, despite the new low for United
States Steel common
Packard Motor was strong fea-
ture again today following the an
nouncement that in addition to the
regular quarterly dividend of per
cent, an extra dividend of per
cent had been declared on the COM
mon. AS reported on the previous
day Packard earned s1.o0O.000 net
after taxes and all charges. in the
month of May. and the indications
are that for the first nine months of
1928 the net will total something like
$4,000. 900
Austin Nichols dropped to new
low for 1928 today. apparently for
no reason except of n lack of effective
support. Much has been heard re-
gardiug earnings and dividends of
this company, but the sponsorship of
the stock. according to some OBJ
servers. does not indicate buying that
would seem to be warranted on the
basis of the information given out
In the street.