Evening star., 1923-07-28
OIL LEADS BIG BREAK.
Usual Leaders and Special Issues
Go Down Together.
BY STUART p. WEST.
SnsriaI Disnatch 70 The Star.

Special Dispatch to The Star.
NEW YORK, July 2S.-Prices broke
badly on the stock exchange again
today, under the lead of the oils.
Marland Oil opened down at once;
IL points. Houston fell points and
There followed an interval OF
steadiness. then, in the last hour
the selling was renewed with still
greater intensity. Marland broke
we'll below 80 on what looked to
be the uncovering of stop orders
under aggressive short selling. The
Pan Americans lost another points
and Cosden, dropping through IA.
stood at a new low for the year.
Most of the other oils either made
new lows or came very close to their
former bottoms in June and July.
Reason for OIL smash.
The smash in the oils followed the
news that measures had been taken
for a months shutdown In the mid
continent region. The street natural
ly figured that this meant reduction
and passing of oil dividends in order
TO obtain funds to carry present sup
plies over until better time. There
was nothing in the news of the steel
trade to justify Steel common break
ing for the first time through 81, or
Crucible surprising its previous low
These We're merely incidents of a
had regained the upper hand. Stu
dehaker. on large transactions, fell
below par. and Baldwin Locomotive
made q new low for the year under
113. Violent declines occurred in
specialties like Stewart warner and
Mack Trucks. which were selling al
most ten points under the highs of
the recovery a week ago.
Rails Hold Fairly Well.
Northwestern rails were not as
weak relatively as on other days
Some short covering was induced by
the statement attributed to the Great
Northern president that the reason
of his road so far this year was the
unusual plopriations for mainte-
nance account, amounting to some
$5,000,000 more than the year before
This also might have explained the
poor comparison made In the North
ern Pacific June report between thl,
years net and last year'S-$691.94(
against S1,5S1454. But, on the other
hand. the head of the Great North
ern admitted that the road could not
stand a further reduction in freight
rates; and if this is true of Great
Northern, it is certainly true OF
Northern Pacific and st. Paul.
Oil Step Unexpected.
Nothing that occurred in the finan-
cial situation today was of as much
nouncement that the principal pro-
ducers in the mid-continent territory
had agreed to a months shutdown
as the only way to cure the over
production in the oil trade. This step
was rather unexpected. 1t had been
supposed that the conference of op-
orators at Chicago would announce a
further cut in prices, but that this
would be all. Evidently the oil rep
resentativeS are satisfied that price
reductions, not having prevailed In
the past, would not be effective now
Consequently they have resorted To
the more drastic measures.
This will hit the refiners, loaded
up as they are with crude oil well
above prevailing prices. But it will
also strike severely at the crude oil
producers who have big stocks on
hand, for which they will have diff
Guilty in finding market. This viii
necessitate marking down of inven-
tories, and these losses reckored IN
as part of the years operations Will
offset to a. large extent the pronts
made during the first six months.
There were no developments In the
European situation that bore upon
the Wall street decline. Sterling went
lower and so did francs, but the
losses were slight. Certainly. there
we're not enough to indicate fresh ap-
nrehension over the German crisis,
and therefore they could not be con-
sidered a factor in the New York
Practically all the improvements
between the first and fourth weeks
of July had been lost at today S
lows, and number of new low rec
largest selling occurring in the final