Evening star., 1924-01-02
TAX SELLING ENDS
IN STOCK MARKET
New Year Trading Marked by
Profit Taking Of Many Re-
cent Leaders.
PRICE MOVES CONFUSED
Sudden Buying Movement Crops
Out in Coppers.
BY STUART p. WEST.

Special Dispatch to The Star.
NEW YORK, January I'm today's
stock market more attention was
paid to the consequences of the
passing of the tax selling period than
to anything else. Stocks which had
hung back during the recovery in the
closing months Of 1923 were strong
while stocks which had been the lead
ers on this movement were freely
sold. That the cessation of selling
to establish deductions from the in
come tax was a factor in many in
stances was clear enough. Also it
seemed probable that with the OPEN
ing of the new year, lot of profit
taking was being indulged in, which
had been delayed until the completion
Of the old tax season.
Buying Move in Coppers.
How much of an influence the tax
matter was in the sudden prominence
accorded the copper stocks was a
question. Anaconda closed the year
at net decline of nearly IA points.
lnspira tion was down Is points from
its high of last spring and Utah was
downs IL points Undoubtedly these
were losses worth establishing from
the viewpoint of wealthy holders
and removal of this pressure must
have helped along today's buying
movement. But, aside from this, the
South American coppers-Chile and
Cerro de PaSco-in which there had
been no tax losses worth taking, were
quite as strong as the North Ameri-
cans.
ThiS suggested more general mo-
tive at work, and it was to be found
In the strength of the statistical posi-
tion of the copper metal and the be-
lief that higher prices are likely be-
fore long.
Among other stocks in which relief
from the tax selling was expressed
at one time Or other Were the fer
tilizer stocks. United States Rubber
first preferred and Burns Brothers
"a"
Recent Leaders Thrown Over
Against these points of strength
there was opposed largely increased
realizing sales in recent leaders
among the oil, equipment and steel
groups.
opinion was that the Improvement in
the oil trade had been we'll discount
ed, at least for the time being, in the
10 to 20 point advance in the oil
stocks during the last quarter of
1928. Their market had been sus-
tanned by talk of highly favorable
forecasts for the new year by men
of prominence, but the statements
which came out, while cheerful
enough, fell fiat as a market influence.
Increasing attention was paid in
the market for Baldwin Locomotive
and other equipment shares to the
fact that the railroads are much bet
ter off for cars and locomotives than
they We're a year ago, and that eX-
penditureS on these accounts promise
to be considerably less this year than
they were last. The latest report was
that Baldwin Locomotive was ope-
rating at only 80 per cent capacity,
but to some extent this low rate was
seasonal.
NatfORal supply Higher.
National Supply of Delaware sold
ing 1928. Its advance was attrib-
uted simply to the favorable earn
ings position and financial strength
of the company, which is virtually
an oil equipment maker. For the
past seven years average profits have
been better than $40 share on the
common. Quick assets approximate
S25, 100000, which after deduction for
preferred dividends, leaves a balance
for the common of just about what
that stock was selling for in the
market today
Chicago, Rock Island and Pacific
Railway common was active and
strong, rejecting a better apprecia-
tion of the improvement in the earn
ings position of the road and the
confidence that net income this year
will exceed the 1928 results. For
the last twelve months it is ex-
pected that net income applicable to
the common will be between So and
50 a share.