Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-10-21
market WEAKENS !,
ON STRIKE NEWS
Railroad Workers Join Eng.
iish Miners in IdIeness-Ex-
change and Cotton Lower.
NJ eTr Ant s.. WEST.

cs:U 7Lf.k Defober 2l-For tho
rfst r.&If ~ sh1ATs trading on the
s',.,< ss>rzHks the market, while ir-
fsEsl&rs vas inclined - ne firm. Some
- fr4 ssu srirH ra3ts we're bid w
st4s 'rz<f}.F4 ara gas shares had a
f,tsf.sf IN yaH.s Tsn strength in
'ssss fus gfslt.s served TO impair
so zt.3ssss ~ 'hE rEsf OF the list.
tr tfss ratty afternoon, however.
nssa eznge inaf the British railway
rEsn hzG a=anl'tly been ordered to
Y. sgs .rs strike IN pympathy with
-" tasal miners. and this gave the
professionals. who we're looking for
an sze-gss 10 cell the opportunity
Nhns3 they we're after,
a,reks ~rrr offered down somewhat
sharply I'll through the list, with
SPECIAL "eaknsts ia the Mexican olis.
"a earn Products. in Canadian Pa,
cIfc aud IN some Of the copperx
Along 1.ifh tho drop in stocks. cotton
optionr feil hravilv and sterling ok
chang" went down again.
ST. Louis southwestern.
4 S. Louis Southwestern Issues were
Pine leaders OF the railway section, and
their remarkable strength was re-
isponsible for reviving interest IN some
OF the other low-priced rails. There
4 is nothing new in the st LOUIS south
twestern situation. Both common ana
preferred became rather overbought
point reaction to shake out enough
Of the outside following to warrant
In resumption of the main advance.
st. Louis Southwestern preferred went
well through its previous high.
The view was expressed that this
stock which is entitled to 5 per cent.
might be nearer a dividend than the
street had been figuring upon. this
because Of tho wonderful show OF cur
rent earnings. There have been all
sorts of estimates as TO what would
ba earned on ST Louis Southwestern
common under the new rate schek
ules For 1920, which includes onfy
four months under the new condl-
tions. it is figured that St Louis
SO q thwestern common will be able I"
show about > per cent.
North American.
In the search for public utility is
sues which might be likely to benent
by the improved sentiment for tins
class of securities. attention mas pefh
drawn to the position in the North
American Company. This is noloine
concern for important light ana tra~-
ton properties in the west. The WIS
con sin Edison is one of the main sun
salaries. and it. in turn. controls
through stock ownership, the Milwau-
kee Electric Railway and Light Com
PAW. the Wisconsin Gas, and two or
three other light and power concerns
All these public utility companies
stand to benefit by the dlmin1shins
cost of materials, as wen as pE tht
tendency toward higher rates Even
during the bad times, when most pub
lie utilities were going down NIL.
North Americans earnings held up
well.
situation Considered.
These movements undoubtedly re
Elected a certain amount of genuine
uneasiness. because the industrial cri-
sis in, England was approaching the
big test With the railroad men go
ing out, the transport workers are ex-
pected.to join in, and the struggle Will
thereupon resolve itself into a simple
straig hit forward trial of strength De
tween organized labor on the on
hand and the British government.
backed by the overwhe Inning mass OF
public opinion, on the other.
There may, of course. be compro-
mise reached at any stage OF the pro
ceedings. but if the issue Is pusheh
to a conclusion. no other outcome man
the defeat of the labor party is con-
ceivable. -
In the meantime British trade VIII
suffer. a nd this is what is reflected IN
the cotton market, and again IN the
exchanges market. 1t would be re-
Elected to much greater extent In
the security market had England any
siderable quantity of American
stocks and bonds left to sell.
AS it is. there is no reason why our
investment community should be SCI
riously disturbed. and if prices re-
sponded with apparent readiness TO the
unfavora BILE news from London, IT was
largely because the market. moving
as it is in a narrow trading area, was
prepared after yesterdays strength
for some sort of a downward turn
today.
Sterling exchange did not get down
to its extreme low of Tuesday morn
ing but it did lose the greater part
of the cent rally of Tuesday after
noon and Yesterday. Continuance or
the weakness in sterling is to be eN-
pected so long as the strike situation
remains acute. The grain markets
were also hit by the unfavorable de-
veIopment in the British labor trou-
bleS.
But for the most part the declines
of a point TO two points during the
last two hours of business We're due
TO protest. pnal traders oHerlng,
prices down rather than to any pres
sure of actual stock. In the final
dealings the decline was checked in
most quarters and the market re-
sumed its waiting posture.