Evening star., 1924-01-14
SUDDEN DECLINES
WEAKEN MARKET
Teu.Point Break in Cast Iron Pipe
Unsettles Rest of Wall
- Street List.
HEAVY WAVES OF SELLING
Oils Do Better Than Most Other
Shares During Day.
RY STUART l.. WEST.

Special Dispatch to The Star.
NEW YORK, January 14.-The
stock market was unsettled for a
time today by tho sudden break in
two or three of the recent specially
favorites. United States Cast Iron
Pipe, which last week sold as high
as S4s and which closed on Saturday
al 77k, broke to 6Sia soon after the
opening today. Wall street explained
the break by saying that the pool had
liquidated and had gone into other
things. But tho natural effect was to
shake confidence in other industrials
pool manipulation. Hayes Wheel was
heavily sold because of the rumor
that the same crowd which had been
operating In Cast Iron Pipe were in
terested in this stock.
Oil shares moved with much irreg1I-
larity. but as a. group did better than
most other quarters of the market.
we'll above so had a stimulating in
fluence and so did the strength in
high priced oils like T1dewater and
Atlantic refining. There was a bet
ter market for Pure Oil above "a.
Reading Report Helpful.
Announcement that the three
classes of Reading stock would sell
"ex" rights tomorrow to subscribe
for the new coal company shares,
acted as an incentive to increased
trading. With the rights. which were
selling today around 90, deducted,
Reading common will return slightly
over z per cent, and the two classes
of preferred stock will return 6 per
cent. Other rails did noting note
worthy with the exception of Wheel
ing and Lake Erie preferred. This
stock opened up a point and A half,
although falling back later. Earnings
are now running at the rate of over
$11 share.
Among the specialties which were
strong, even while other parts of the
list were reacting, were Sears Roe
buck, Jewel Tea, Utah securities and
the Willys Overlands. The street has
been talking for months about some
payment being made on WHY'S Over
land preferred back dividend account.
Cuba Cane Sugar Strong.
Cuba Cane Sugar preferred was
bought on the statement made Off
cially at the annual meeting that
prospects were good for an early re-
sumption of dividends. The only
qualification was that no action was
likely to be taken until June, when
it would be known where the COM
pany stood on the new crop and the
prices obtained for 1t. But around
So, entitled to per cent regular. and
dends on the first of next April. the
attitude in speculative circles was
that the stock was not high.
Note of Caution Issued.
In its weekly letter q. prominent
Broad street house said: so much
has been said on the favorable side
that one is in danger of forgetting
that all is not quite as rosy as pic
tured. There is no use blinking the
fact. for instance, that d very con-
1iderable perce ntage Of the produc-
tive capacity of several important
equipment concerns is shut down:
that there is general curtailment
clothing business is much below par;
that except for the lowest cost pro-
ducers there is little money in the
production of copper; that the leather
through the period of losses, shows
little evidence of profits"
Maracaibe, Oil Active.
alton stock became increasingly ac-
tive and advanced to new high
price. The floating supply of Mara
caibo is small as the result of large
holdings resting in the hands of a
few important oil interests. At the
same time it is expected that Mara
caibo will realize larger profit from
its ownership of oil-producing lands
in Venezuela
When the advance in Penna Crude
wondering when further Mid Con-
tinent price increases would come,
for higher prices in that territory is
regarded as overdue. About 10000
barrels daily are affected by the
Bradford. Penna, advance, whereas in
Mid Continent and in California a
much larger quantity is involved.
To what extent the exchange stu
alton was factor in the sharp de-
cline In stocks, was not clear Prob
ably 1t counted as a sentimental in
huence. But the chief cause was the
Gus so-called industrial specialities
that recent pool operations had been
pushed altogether too recklessly
Worst Setback in Many Weeks.
With the course of the afternoon
the losses were increased until in
many instances they amounted to q
fbs sn6 6sas,snt as much hs,;n as points It was
the most severe setback since the
upward movement began in the last
week OF october. Stop orders. put in
to save, part of accumulated paper
profits or else to avoid loss, were
uncovered on a large scale.
The decline involved no change in
underlying sentiment regarding the
business outlook. It did recognize.
however, that too much was being
said on the optimistic side, and not
enough thought being taken of the
qualifications that should be made.
The way parts of the stock market
have been bid up during the last
week or 80, many people might have
been led to believe that the country
was running into a trade boom and a
speculative campaign like that of a
year ago. To correct this view and
at the same time to restore a sounder
Wall street position, today's break
was most desirable.
MARKET CLOSES WEAK.