Evening star., 1924-03-17
VIOLENT DECLINES
IN STOCK VALUES
Market Stocks Weak, With
Sharp Breaks in Many
Leading Shares.
BY STUART r. WEST.

t BY STUART =. WEST.
Special Dispatch to The star
NEW YORK. March 1.-THE
market today had the customary
Monday reaction. There were al
logged reasons in the outside news,
such as the prospect of tl:e soldier
bonus bill going through. Severe
pressure appeared again against
stocks which had been going down
conspicuousIy toward the close of
,ast week.
Kelly Springfield made new low
closo to. l6, anticipating the passing
at least of the dividend on the s per
sent preferred. Other rubber and
tire shares were more or less de-
pressed.
Tobacco stocks Break.
American Sumatra sold below II
for the first time, but for no other
than the familiar reason that the
company has been running behind
steadily for the last three years and
has been piling up protit-and- loss
deficit of s2,369.o0o.
Selling continued in Tobacco Prod
ucts by holders who had bought on
enthusiastic predictions of what the
American Tobacco purchase would
mean for Tobacco Products stocks
and who were dumfounded at the
statement made unofiicially Saturday
that the 1928 report was not likely
10 show the per cent on the COM
mon covered. and hence that this
dividend was in danger.
Rail Shares Hold STEADY.
Railway shares for the most part
held up we'll. even while the selling
movement was heaviest in the indus
trials. Wabash common continued to
= lnr ,,t.
IS and the preferred "A" maintained
last weeks rise. Interest was re-
Nived in the Eries in anticipation of
d favorable traffic statement for Feb
ruary. Chesapeake and Ohio was
bought in expectation of an increase
In the dividend from the present 81
TO IS basis. The remarkable move
mcnt in New Orleans. Texas and Mex
lco continued carrying the stock to
rev high.
In no other quarter of the list
was there such a heavy short in
terest accumulated as in the Pan
heen piling up for months past on
the idea that the dividend would be
either cut in two or passed altogether
me reduction in the quarterly divi-
dend from s. to 81 announced over
sunday was the less unfavorabIe of
these two alternatives. Accordingly,
after a small decline at the start, the
Ahorts set about covering. Other oils
were not affected by fluctuations in
Rapid Transit Above Fl.
Buying in Interborough Rapjd
Transit. carrying the stock up to a
eew high for the year. above 2I, was
Hnspired by the announcement Of the
adjournment early in April of the New
y ork state legislature. This made it
appear that the Rapid Transit pro-
gram fathered by the New York city
government. which would mean in
Greasing competition with the present
companies. stood little or no chance
TO 20 through.
Wall street did not believe the de-
malls put out Saturday regarding the
relations between Stewart Warner
and General Motors. 1t continued to
latter company was going to man
ufacture its own speedometers and
that this would mean the loss of a
very valuable business to Stewart
heavily sold and this selling had an
unsettling effect upon the motor
stocks. Chandler Motors was weak
again and Studebaker dropped below
par.
Auto ShEres Weak.
Shares connected with the auto
mobile industry were notably weak
and this made more pertinent the
question whether the record breaking
sales reported so far this year are
Wall street is discussing how large
apercentage of these, sales have been
made to the public direct and how
largo Il remainder have been made
TO dealers. The possibility was con-
sidered of these automobile dealers
''ecom!ng oTerstoCked later in the
season.
The source of much of the buying in
Chesapeake and Ohio again today was
"a matter of considerable interest 1t was
said that the Van Sworingens of Cleve-
land were adding substantially to their
holdings, and that the buying was in
anticipation of important developments
in the affairs of the company. The
stock pays 81 annually, and the talk
III the street is that the rate will be in
creased TO S6. The current four-dollar
distribution is being earned more than
Naturally. with the market going
down, spectators for the decline played
up to the utmost the results SO far of
the Daugherty investigation and the
sensational statement attributed to Mr.
Vanderlip that the disclosures of official
corruption still to be made would shake
the country. 20
Worry Over Auto Dividends.
Motor shares were heavily sold on
talk that sooner or later there would
be overproduction in the industry. 1t
was also pointed out that stocks like
Studebaker and Chandler would not be
selling as low if dividends were safe.
As Studebaker went through par the
selling became very heavy No effort
appeared to be made to support Chand-
Ter or the other motors like Maxwell
and Willys-Overland preferred, which
fell away sharply Other motor ac-
cessories sympathized with the break in
Stewart Warner, Hayes Wheel cspe-
cially selling of some three points.