Evening star., 1923-03-06
VIOLENT ADVANCES
IN LEADING STOCKS
Prices Also Drop lust as Fast
in Some Issues-Heavy
/ Selling Hinted.
BY STUART II. WEST.

BY STUART r. WEST.
NEW YORK, March 6.-Vioient up
bidding of selected industrials con-
tinued on the stock exchange today.
But this was the first day in some
time that. when bullish operations
were suspended, prices came down
as fast as they had risen. 1t took
but half an hour for Stewart Warner
TO go from 121h u to ia. for Strom- :
berg Carburetor to drop from "a to
SS4 and for California Petroleum,
which had sold close to par, to fall
TO 91k These were samples of what
was taking place all through the
market.
New leaders were brought to the
which otherwise might have been
produced. Responding to estimates that
the Years earnings might run as high
as $50 a share. American Locomotive
crossed 1870 for the first time, BALDWIN
Locomotive rushed up above 14l and
Railway Steel Springs had an equally
rapid advance.
UOsch Magnetic Jumps.
The first sale OF Bosch Magnetic
quoted at 60. as against last nights
close of 53A Partly this was a be-
lated response to the favorable
earnings position and dividend out
look OF the company. partly II was a
move sympathetic with the pyrotech-
mics in other motor supply stocks, and
partly it was the route of Il short
interest built up some time ago on
the idea that the litigation in which
Bosch Magnetic was involved would
have an unfavorable termination.
There was demonstration in some
Of the tire shares on the idea tnat
they have been selling out of line
but it was short-lived. Iron Prod
ucts made new high in anticfpa-
tion of some early announcement re-
eardng the capital readjustment
plan which is expected to look at
tractive to present shareholders.
Rrocklyn Rapid Transit dropped be-
low on selling, by people who did
not wish to pay the heavy assess
menL called for under the reorganiza-
ton plan
Review and Outlook.
TIE stock market absorbed the prin-
cipal attention among all the various
markets today. There were violent
advances and even more violent de-
clines. these fluctuations accompanied
'by another extremely large volume of
transactions How near the upward
mor ement which has been going on
with scarcely any interruption for
IL would be rash to attempt to pre-
dict All that can safely be said is
tha. during the last few days signs
we appeared which to practiced
eS are Symptomatic of an intensely
Spe culative stage, where calm reason
int has ceased to count. and where
runor has taken the place of fact as
the guiding impulse.
Nobody but the craziest speculator
would be prepared TO agree that the
oh pa n
has been SO great as to justify 100
point advance in a stock like Stewart
Warner within the last year and a
half This. in the other hand, is a
ather extreme case, but in score
of other industrial specialties the ad-
vance which has been going on for
the last week or two is quite as eX-
travagant as any that occurred at
the top of the lnndtlonary period
three years ago.
Many Stocks Working Lower.
Two things stood out significantly
in the Wall street movement of the
day. One was that while attention
was being drawn to spectacular up
bidding, of a few of the favorite in
dustrials, the general list was not
only not responding, but was slowly
yielding ground.
The other was that in the leaders
themselves advances for the first time
were quickly succeeded by a reaction
be drawn in the light Of all expert
euce was that as operations Tor the
rise was becoming more artlf1clal and
more reckless, a great deal OF gem
uine. and what Wall street would de-
scribe as important selling" was TAX
ing place.
With the tire and rubber stocks
rrore active and joining the advance
-umors were broadcast once again
about pending increase in the prices
. S.ni "a l.
vances in prices would range from
- to 25 per cent. Rumors regarding
tire price increases have been preVa-
lent for some time. due to the steady
ruhber and the marking up of tire
prices would ba only logical Sc
quence TO the crude rubber move
Kelly Springfield was the leader in
pany reported for 1922 the largest
gross profits and the largest operat-
ing income in it's history.
Baldwin Locomotive Plans.
Baldwin Locomotive is reported to
have perfected working arrange
r!ent with the Westinghouse Electric
Company along the same lines as that
j1st entered into by American Loco
motive and General Electric regard
ing the making of the railway en-
gines.
The responsibility for the further
strength in International Paper lay
largely in the announcement of an ad-
vance in paper prices due to the in
creased demand. The price increases
are from s5 to $40 ton in paper for
various commercial purposes. The
likelihood of a rather poor income
report for last year is overshadowed
in the market for International Pa
per stock by knowledge of the much
better stock conditions at the pres
ent.
Oils Lead Late Trading.
Some of the oil stocks were picked
out for leadership despite the state
ment by the Standard Oil president
that gasoline prices were not likely
to get above the present level.
General Asphalt was bid up across
SO and Standard Oil of California was
particularly strong. American Wooden
was bid up again in the afternoon,
but less on account of last years re-
suit than on the anticipation of much
more favorable earnings in 1923. Mack
Trucks went down over points aft
er the declaration of no more than
the regular dividend at the rate CT
"a share, but prompt rally follow
ed.
fvHA