The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-01-25
FINANCIAL NEWS
AND COMMENT
Railroad stocks Decline on
LabOr's Attitude and Tn
settle the List.
TONE At CLOSE FTRMER

Liquidation and professional sales
| for the decline combined again to force
Il further depression In the stock mar
kct yesterday. Transactions tended to
| increase somewhat in volume. owing
| largely, however. to the activity of the
selling movement as long as liqui-
dalton was apparent. After mid
session this movement slackened and
traders adopted a waiting attitude. with
some manifestation of an uneasy dis
position to cover short commitments.
Compared with the weakness OF the
early dealings the market showed a
decidedly better tone toward the end
of the day. and while II closed at n
substantial average OF decline the list
was steady at moderate recoveries
from the lowest levels.
Rails were the leaders in tho
unsettlement which spread rapidly
throughout the market at the outset.
This was the direct consequence of
the widespread advertisement over the
week end Of the Importance of the
tOnlTpNtTsN WHICH IN IeIlUlllg III t1'
preparation of railroad labor for "A
countrywide demand OF an eight hour
minimum working day with heavy pen
alties for overtime. II happened that
the emphasis given to this matter COIN
cided with a fresh direction of atten-
ton to the volume OF British liquida-
ton or American stocks IN pursuance
OF the programme to support sterling
exchange, and II was not surprising h IA
\ tIA Va,1rnnl llat xaannAl .,y,aphas
II might ave weakened more without
provoking establishment and the fart
that II did not was a suggestion OF n
better market position than some spec
ulative observers have been asserting
lately.
one explanation of this is probably
that are practically demands for a
great increase OF railroad wage have
been anticipated in railroad and finan-
clal circles for many weeks past. The
publicity nov given them is, however,
Tor the purpose of developing the iinpor-
tant principles involved. The great gain
IN railroad earnings in recent monthe
Lessons somewhat the strain OF labor's
attitude. but II does not alter the es-
sential feature OF the situation. tina,
the relation between railroad wages and
railroad revenues must be more clearly
defined. So far as regards the stock
market. it is also to be noted that
railroad shares have not been inflated
IN price while quoted values for indus
trial shares have expanded go remark-
ably. This unQueetionably makes for
safety under the circumstances.
Throughout the day there were many
indications OF an increasing excellence
Of absorption OF meritorious shares at
the declines established. and the resist
| auce which was offered generally WAS
the subject of extensive Most
of the war munition shares seemed To
| have benefited from the contraction both
IN prices and speculative positions
through which they have passed lately.
STANDARD industrial descriptions found
buyers awaiting all fractional conces-
sio'S. The copper group offered con-
rpicuous resistance TO pressure, and
United States Steel. which was unques-
t~ionably "A pivotal issue. was In demand
I, at rallying figures In the last hour.
Considering tho sensitiveness which
quoted values as a whole have dis played
recently to selling and uufavorable news
the market exhibited a substantial
amount Of underlying strength under
persistent hammering and adverse con-
sidcrattons. Except for about one rally
ing session each week IL has now been
declining throughout the month and
tfFAA' W il Stlshl' ~ u llANh 'lllf tS-
tinCt token OF its present position. There
has been u good deal Of defldttuu and re-
ductiou OF long commitments Accord
ingly the next few days are likely 10
throw light on the question of THE sufi-
cheney Of readjustment so far 10 permit
the solid factors of prosperity to he more
conStructively reflected.
During the day Wall street talked less
Of Ill" railroad labor situation than Of
the prospects for a restoration ~ United
States steel to a dividend status at this
afternoons quarterly meeting Of tho di-
rtCtors. Feeling toward the end of tie
session was that a dividend would be
declared. Earnings Of the last six
months VIII unp%ucstionably permit IL, for
previous charges out OF surplus were
practically covered in the satisfactory
net earnings of the September quarter.
Earnings In the December quarter wero
good and current business as we'll a.
forward business is IN largo AM profit
able volume. Should the steel directors
decide to restore dividends on the com
mon shares their decision will he inter-
prctcd as "A vote OF conhdcnc" in the
fundamental souudness and strength of
trade and industrial conditions.