The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1924-10-07
STOCK PRICES
DROP SINCE
AUGUST
Decline Of Four Points Noted
in Twenty Industrial and
Railroad Stocks
BY W. $. COUSINS,

10y NNslsJ AWGOAIN9e 4
international News Services Financial
Editor.
NEW YORK, oct. HAS the
pendulum of stock prices began an.
other short downward swing. and
will the stock market continue to re-
fleet the usual uncertainty indus
try and business which prevails just
prior to presidential election?
This is a quest on which many in
vestors and traders are asking today
in Wall Street and all the other inn
portant speculative centers OF the
country. Commission houses and
professional traders are definitely ar.
rayed on one or the other side of
the question, and display no doubt as
to which way the market will turn.
But this is their regular means of
Livelihood and they are as clever In
their alibis as they are in their pre-
dictions of future trend in the stock
markets. III prices do not follow the
course they have charted, there Is
always a good explanation for the
comfort Of those who followed the.l
advice, to their loss.
Decline Noted
Neither the industrial nor the
railroad stocks were able to dupIi-
cate in September the high average
price recorded in August, and the
decline since the middle Of August
has taken about four points from
the twenty industrial stocks used
in international News Service com
plntion, and two and one half points
fyom the railroad stocks. No
major movement in prices OF stocks.
whether upward or downward. is
contaminated without d series Of
intermittent advances and declines,
either in the whole market or in
groups of stocks These are known
as Secondary movements by the
comphers Of charts and done sheets
and the real conundrum sls TO de.
termine whether any given move.
ment of prices is playing second
fiddle to the major swing" or the
inauguration Of another long adj
vance or decline in prices. This
is the problem with which market
commentators are graphing today,
and it is not simplified by the prox.
unity of the presidential election.
While the movement of the aver.
age price of the few selected stocks
at a time like the present may not
be the most accurate guide to the
trend Of speculative sentiment, it
is as reliable as any other, for the
reason that the activity of the
stock market is dominated by pro-
fessional traders. whose operations
are concerned chiefly with these
market leaders, As rule pool ac-
tivities in their fayorite stocks for
the rise. or concentrated attacks
for the purpose Of depressing prices,
are of short duration, and eliminate
when their specific objects have
been attained. A notable exception
to this rule is the Steady advance
of American Can for more than 100
points in two years, the efforts Of
the pools being aided and abetted
by a phenomenal increase in net
earnings and the inauguration of a
more liberal dividend policy by the
directors of the company.
Oils Backward.
As in former comparisons, the
backwardness Of the oil stocks is q
serious reflection on the price struc-
ture Of the whole industrial list.
The oils have made so many false
starts in the last few months that
spectators have given them the
cold shoulder: while railroad sstoo'-r
apparently are waiting for more
mergers to stiLnL4t@.l ,n...~ -
attention to them.
The following price eo-,-@ orr
give a comprehensive survey Of
the action Of the stock market in
the last year twenty stocks in each
group selected and compiled by In.
teruational News Service):