Evening star., 1923-04-02
RAILROAD SHARES
DECLINE SHARPLY
Bears Find Position Weak
and Sell HeaviIy--0ther
Stocks Affected.
BY STUART p. WEST.

ISEApA w Ao
Special Dispatch to The Star.
NEW YORK, April 2.-The market
started In today with a fair show or
strength IN tho industrial section.
A number OF the American oils and
variety OF specialties were taken
Up. But soon as 1t became evident
that these pool operations we're not
attracting any following to speak or
traders turned to tho short side, pay
ing special attention to the rails.
The main incentive 10 the ceiling
IN the railway stocks was that no
resistance of an organized sort was
to be expected when the pTotes-
sionals offered them down. AT the
same time brokerage houses mad
been go consistently commencing
railway stocks TO their customers
that there had grown up a consld-
cradle long account OF q pretty
weak sort.
Rails Drop Easily.
The case with which some OF
ordinary. Union Pacific had what
amounted to wide-open break
Southern Pacific went below 80 under
wave OF selling. New York Cen
trail. which was in particularly
weak position owing to the failure
of the directors to meet Wall streets
expectations and increase the diVi-
dend, was another target for snort
sellers Among the low priced is
sues New Haven, Wabash preferred
A and the St. PaulS were pressed for
sale with considerable urgency. The
extreme weakness In the railway list
unsettled the entire market. Evi-
IDENTIFY the bear program had been
carefully worked out, TO focus upon
tho railway stocks. because these
we're tho least protected and by put
ting them down bringing about selling
In other directions.
Oils and steels Weaken.
OH shares aud steels. which had
with the rest. Even while Marland.
Phillips Petroleum and one or two
other members of the group were
displaying strength. as they did in
going on i'll Pacific OIL. and when
the general list turned downward
this stock broke below 40.
To conclude that railway stock s
were getting ready for adverse legis-
lation at the next session of Con-
gress would be stretching the imagt-
nation pretty far. Wall street. TO be
sure, is in the habit of discounting
events long ahead Of tune. but it is
hard to assume that the market has
begun its preparations for unpleaS-
ant possibilities that are nearly d
year off.
Reason for Declines
The most plausible reason for the
abrupt break OF l, and 3 points in
the railway leaders was that il was
due to market conditions in this class
of stocks, which were favorable for
operations on the short side. On the
one hand, such outside speculation as
there has been during the last few
months has been drawn into the
railway list perhaps more than into
any other quarter.
on the other hand few OF these
stocks have been the object of at
tention on the part of Wall street
pools, consequently support against
q speculative raid was not to be
apprehended.
If tho purpose of a drive upon the
rails was to upset the markets gen.
orally it was only partially achieved.
1t put a stop TO further efforts to
advance prices and brought about
a moderate decline in other parts of
the list But it did not lead TO any
selling OF consequence or any con-
splcuouS weakness
Money In Better Demand.
Outside the stock exchange the
day was uneventful. Trading in
bonds continued dull. Time money
was reported in more active demand
but without any change in rates.
Fluctuations in the foreign ex-
change were small, the only signifi-
IN the German mark around the level
of forty-eight thousandths of a cent
at which II has held since the Reichs-
oank began its attempts at Stabiliza-
tion.
Skelly Oil Shows Strength.
Skelly Oil (new) S25 par value stock
was feature among the oils today,
reaching high record for the year
so far. The recent strength in this
stock. as we'll as other prominent
members of the Midcoutinent group,
such as Marland. Phillips and Pro-
ducers and Refiners. fits in with what
was said here a week ago regarding
the Nidcontinent Oil outlook and the
demand for the high grade light oils
from the district. Skelly's agreement
with CoSden to supply 5000 barrels of
crude oil daily is proving quite profit
able.
Latest information concerning the
operations OF Mack Trucks indicates
that the net income applicable to the
common stock for the first six months
of 1923 will be from SO to S12 a
share. which bears out largely the
favorable expectations of this COM
pany's business for the current year.
In March Mack is said to have ex-
ceeded its sales average by a sub
stantial amount and April will un-
doubtedly be even better month
than. March. Dividends at the rate OF
between Sc and SIS. some time this
year are anticipated in conservative
quarters.
What happened in the stock mar
ket today was simply another illus
tration, of which there have been
several within the course of the past
year, that Wall Street swings now
adays are more violent than they
used to be.
Changes Very Rapid.
Speculation is no longer satisfied
with steering a middle course. 1t
goes from one extreme to another
and once a movement that has run
a long distance in one direction or
the other is checked, the opposite
movement is immediate and proper
tionately extensive.
This was seen on three occasions
In 1922-in June. in September and
again in November. The downward
swings In these three months were
in zach instance the readjustment
after a period of extravagant spec
ulation.
The same analysis applies to the
market Of the last fortnight, Once
a speculative element realizes that
efforts to advance prices in any gem
eral way were no longer succeeding,
that the campaign of February and
March had. to use the common phrase,
gone stale, the whole endeavor Is to
reverse Its position as speedily as
NosSihla