Evening star., 1923-06-12
STOCKS SELL OFF
! IN NF|NAL TRADING
oil Shares Lead Selling
/ Wave-Some Low Prices
! for Year.
By STUART p. WEST.

Special Dispatch to The Star.
NEW YORK, June 12.-In today's $
stock market the same distinction
was. maintained as on previous days
between the railroad stocks and the
industrials The former were better
supported and at intervals We're fairly
strong. The latter moved with con-
siderable uncertainty and while with
out being weak were selling most OF
the time under the level of Monday S
close:
Most of the initiative in the rails
was supplied by pools and a rev
large operators trying TO pun the
market out OF its rut by making the
railway group the leaders. southern
railway once again seemed to be the
most confidently bought of any. 1t
is now figured out that the entire .
per cent dividend on the preferred
was covered in the first quarter of
the year. and allowing for seasonal
Variations from now on, the surplus
available for the common at the close
of 1928 will be something over IS a
share.
Dividend Speculation.
This is enough to permit dividends.
hut there are many who doubt, IN
view of the next years prospective
agitation against the railroads.
whether a management so conserva-
tive as the Southen railways would
undertake to begin distribution On
the Junior shares.
All sorts of gueSSeS We're current as
10 what the New York Central direc-
tors would do Wednesday,. The ma
jority opinion was that the rate
would be raised to per cent, In
which event the stock would be high
enough. Ii per cent were paid,
as some think 1t will. it would un-
tioubtedly arouse fresh enthusiasm
for the railway list in general. If the
opposite thing should happen and the
present ) per cent be maintained,
the effect would be in all proba ability
TO cast a damper upon efforts to pro-
long the upward movement in the
rails.
Oil shares were heavy, with one or
two exceptions. but not as much de-
pressed as on other days.
Financial Review and Outlook.
Today's movements in the various
markets were very much confused
and altogether threw no fresh light
upon the general outlook.
Selling went on in parts Of the stock
exchange list at the same time that
new buying was in progress in other
sections. These fluctuations were of no
particular significance: they showed
merely, as the market has for the last
two weeks. Il tendency to settle down
around the present level and to wait
Developments in the business world.
Pessimism over the outlook for for
diSpoSiug of the German reparations
problem at this time was plainly
enough evinced in the course of the
foreign exchanges. German marks
made new low, getting below .0012
cents French francs below $40
cents, were lower than they had sold
In nearly three months.
rTira Trnde CauseS WOrrv
Occurrences in the business situa-
tion were conflicting. The stock
market did not relish the prospects
of another price cutting competition
in the tire trade, and sold the stocks
concerned pretty freely. The main
have been paying for their raw ma
terials and whether they have been
in position to take advantage OF
the drop in crude rubber,
hiGh-priced rubber-and the best evil
dence is that most of them are not
then il Is reasonable to assume that
they will be able to offset reduction
in tire prices by the lower production
costs.
There were intimations that further
REIMBURSEMENT which seems to be nee
esSary In the oil trade would be ac.
complished by the midcontinent re-
fners cutting down their orders for
been attempted in the California dis
triCts. Oil shares continued under
more or less pressure in the market
of the day as if awaiting some such
announcement.
A decidedly better tone. however.
appeared in the copper market and
confidence in the outlook of the metal
trade was afformed by the action of the
American Smelling directors in putting
the stock on a s. basis. the first divi-
dend that has been paid in over two
Years.
Oils Lead Downturn.
As the afternoon went on the stock
market turned downward under the
lead of the oil shares. In some of
these new low prices for the year
We're reached.
There was no explanation for the
decline except that efforts to revive
outside interest by putting up the
railroad stocks had failed and that
this was accepted as an encourage
ment to some tentative renewal of op-
Outside the oil stocks which were
quite evidently discounting further
trade readjuStment there was no i'm
portant weakness. Rails were having
their normal reaction after last
weeks rise. and the losses in most of
the industrial leaders did not go be-
yond the limit of an ordinary down
swing in a so-called dragging mar
ket"