The sun., 1916-11-22
FINANCIAL NEWS
AND COMMENT
Outside Public Again Helps to
Steady Market in Face Of
Heavy Selling.
RAILS FAIL TO HOLD GAIN
Steel Sales 300, OOO-Wage In
creascs May Be Looked Upon
Favorably by Traders.
RAILS FAIL TO HOLD GAIN

Instead OF the tyrically reactionary
Tuesday Of n public bull market. Wall
Street saw yesterday a market that was
Irregular rather than weak. The profit
taking sales and the professional selling
almost invariably accompanying a wide
bulge in tho market on Monday buying
were offset Ivy the continuation of that
persistent demand for securities from
the outside public which to no little ex-
tent has taken the stock market away
from Wall Street and Is the markets
outstanding feature.
Steel COMMON In which more than
800 o shares changed hands, ~elualled
Its high record price Of 1873. but reacted
later and closed at 127Hs. unchanged on
the day. II was announced before the
sessions close that further advances In
steel prices had been made. but II was
not known that the corporation. follow
ing its old policy cf liberal treatment OF
employees and maintenance of It's work
ing force at a high grade OF efficiency.
had granted the third increase In wages
II has voluntarily awarded since business
picked up after the war. 1t IL likely that
the knowledge OF this increase In wages
will be considered favorably as ind'-
eating that the company proposes to
operate its plants NJ Il maximum OF ef-
iciency. which may mean a profit to
stockholders ~compensating fpr the S17,-
o 1000 to SIS, oOo, 900 additional ex-
perses on the labor account
The railroad shares failed to main
tain their advance OF the previous day.
Almost without exception those star-
dard dividend paying railroad stocks
which gained cround on Monday lost
quite as much Yesterday. Among bank
ers deeply Interested In railroad securi-
ties and among investors and srecula-
tors who fancied them to all other Sc
curi;ies In the past there was toward
them the same favorable disposition on
the ground Of high earnings and FOR the
most part e'il tent operation. and there
was also the feeling that the hearings
at Washington would eventually result
In an equitable solution OF the entire
railroad problem.
ON the o.her hand Il was suggested
that he acrimony with which railroad
amaze and the heads Of the Big Four
brotherhood were pursuing their con-
,roversy at Washington and in the
courts might he tempered II the rail-
road managers voluntarily advanced
wages, as did the Northern Pacific
last week. II has. indeed. been a weak
point with the railroads that their man
ayers HlNt TtSl-Ntu UNIV wy '' Wv
mands OF the men while ca nings month
after month throughout the past iisca!
year and in the current fiscal car have
surpassed Themselves in reaching high
record totals. The voluntary advances
i'm wages by the Steel Corporation ana
the history Of that corporation IN its re-
lation TO labor gave port TO TINS sus-
g~esiion.
The zest for possession Of stocks was
intensified by increases in dividends. At
lant.c Coast Line. following the ex-
/ ample Of it's associate company, Louis
willie and Nashville. last summer, went
back to a per cent. basis. Central
Leather declared an extra DIVIDEND or
2 per cent. making +. per cent. on the
common for the calendar year. Hey
wood Bros. x Wakefield. a mlnufactur-
ing concern which. though not listed
on the exchange. IS old and conserva-
tive. increased its semi-anrual dividend
from SO 20 81 4 share. and declared s.
"A share extra. There was heavy specu-
lative buying TO the accompaniment OF
those announcements.
Cali money was easier. with the clos
ing rate 3 per cent. as compared with
3l2 per cent. on Monday. and with the
prevailing rate ga, per cent. rs COM
pared with 3 per cent. the previous day.
II was reported that the banks had
"Fi' ~ - w
collateral. and the report was true in
the respect that the banks refused "a
follow upward the prices OF swiftly soar
; ing industrial sharea.
Put this action was no deviation from
the policies which the banks have fol
lowed for more than a year. Whcnever
in that time any shares OF the war class
or Of the pooled Industrlals have ad
vanced in spectacular fashion the bank.
have as a general rule refused TO fol
low tho prices upward.
There are exceptions, OF curse. Some
industrials may not he taken by some
Of the banks, and those same industrial.
may be accepted at % per cent. OF
market value by other banks. But
generally, the banking policy regarding
brisk upward movements in stocks has
changed very little.
For that matter. II was said in one
Of the most prominent banks. IL appears
to make little difference how high mar.
gins are requested on loans from brok.
ers, or how high margins brokers exact
from their customers. Both customers
and brokers rave been able to pay wha'
was required, and certainly were abb,
to do so yesterday.