Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1920-03-02
RETURN of RA|lROADs is
MARKET WET BLANKET.
Hut Favorable Steel Corporation
Court Decision Causes Rally and
Saves Wall Streets Dry.
ny DItOADnN whII,


NEW YOIsE. March t.-Rcturn of the
,,.wet blanket on the stock market to- O.,
as business opened. Tho market was
very weak and was becoming more
active nc,,v when the supreme Court an.
bounced that the United States Steel
oCsorPoration is not a trust and there
sforS need not dissolve.
rms checked selling in the indus
Trials ana caused q sharp rally which
apparently had no. spent It's force when
tho market closed. The net result OF
dustrials. but With no mateTiai changes im
In tho rails. Money was at 10 per cent.
Bankers had meeting during the
were in good condition. which was In
tseresttnE, but not news. The Wall
10 let, 3bn h1ys o 6ssn
market is the strongest thing I'm the
country. The weakness is in the COM
mersial loans. and the commercial
bankers arc doing most Of the worry
ing.
Does We'll to Caution business.
Tho local bank statement of Satur
transfer or funds. but tho banking con-
dltfon for tho whole country is weaker
than In the previous statement. The
business men to be cautious. Tempo
rarily there is an accumulation OF cash
In New York for the payment Of in
drawn from other parts OF the coun-
try SO that the Improvement is appar-
ent only and not real.
Wall Street was pleasantly surprised
when L war announced that the Amer
ian Federation OF Labor had actual
decided TO let tho new railroad law
stand.
Endicott- johnson stock was one OF
tho weakest issues on the list. This
attention had been called to it's hoard
ing of material By It's annual report.
Central Leather did the same thing.
tt.l nsfI ,ne - 4,
Endicott-Johnson, as did Central Lcath-
err. evidently because the same condi-
ton exists in that company. The prof.
teeTtnE In shoes has been particularly
obnoxious to tho public, because 1t
strikes the children OF the poor harder
than any other.
peehion rieancs WALL street.
While the decision OF the Supreme
Wall Street as general proposition. It
is not likely to prove more than tenn
been buliisf. because that would have
s,eeRs rhe.a9e se IF ,e raY n
the market was chiefly a matter OF
sentiment Conservative brokers warn
tnsr rbs Decision 1s to w sake
Croix de Guerre. for the corporation
though it lid get well paid for il IN
money.
Aoticn OF the railroad stock was a
bitter disappointment 20 the Street.
Nearly every brokerage house mad n
group OF customers long Of the lew
priced rgils. which were to do won
drous things as soon as they were
These stocks had been freely bought
Oh tho theory they leTar had ~ square
deal before. but are going to get Il
now.
Persons who have been buying these
stocks overlooked the fact that IL Is
going to take two years to get the
railroads back iii smooth working con-
dittons. and that in the meanwhile
more than $1,000, 100000 Of new money
VIII have to be raised for them. In the
present gtate OF the railroad bond mar
kei. IL Is difficult to see how this money
Is TO be raised
by the same token il Is difficult TO
see how tho railroad equipment com
panies arc going to sell locomotives
aud cars unless tho railroads are able
% self bonds.
britain to Market Tall Stocks.
In the face OF this situation thcre is
"a possibility that another great selling
movement OF railroad stocks for the
account OF Great Britain will be ecen.
Great Britain will have to do some
financing here soon. and must accumu
late credit. Whether IL will be done
or stock deposited here Ms collateral
remains TO be Sceu.
Owing TO the disparity In tho stcr.
ling exchange rate. the British can sell
Americun securities TO great advantage.
Canada IL putting an embargo against
tho sale OF such securities in that coun-
try, but tho Now York stock exchange