The Washington herald., 1920-12-19
WALL STREET GOSSIP.

NEW YORK, Dec. 1S.-wesley NJ.
Oier, president of the American Ice
Company, in commenting on the
forthcoming annual statement of his
Company, injected a grim note of
humor into his remarks that should
make some of his fellow sufferers
smile. Said Mr.. Oler: TT is a satis-
faction to the management to be
able to state that owing to the ma
ture of our business, there is no
unusual shrinkage in inventories"
Earnings of the L. S. Steel Cor
pOration in April, May and June
were reduced by the transportation
strike. In July, August and Sep
tember the coal priority orders Of
the ]. c. c. interfered with the free
movement of steel products. In the
present quarter all of the accumula-
tions of the previous two quarters
have been cleaned up and with op-
eraticns at a higher percentage than
those of any other steel company,
shipments have been maintained.
Hence predictions of increased earn
ings for this quarter seem to be well
founded. -
There has been a good deal of
discussion as to the market posi-
ton of Pennsylvania Railroad stock.
The company has interest charges
of approximately S25,000,o00 per
year. About $23.000,0 900 of this Is
derived from other income" Its
present controversy with the gov
. ernnent as TO the amount due I,
involves not only a large sum of
money. but the question of whether
the usual outlay made by. the COM
pany in restoring its trackage will
be viewed by Federal authorities as
a basis for settlement of a like
question with other railroads. Prac-
tically the whole line from New
York to Washington has been re-
balIasted and laid with 130-pound
rails, the heaviest ever used by
any road in this country. Whether
the government should assume the
burden OF this work Is a question.
The roads earnings fiuctuate con-
siderably and therein lies the un-
certainty of it's market position.
Consolidation of the railroad sys-
TENS of the country in certain pre-
scribed zones authorized by the
transportation act of 1920 presents
a formidable problem. Prof. Ripley.
of Harvard. who Is making a spe-
cial study of the railroad question
for the Interstate Commerce Com
mission, is expected to submit q
more or less definite plan very
shortly after the new year. 1t Is
understood that he is devoting
especial attention to the rcalign-
ment of the New England railroads.
one of the suggestions. II is said,
will be the absorption of the New
Haven by the Pennsylvania.
Another suggestion is that the
Boston & Main consolidate with the
Maine Central. 1t is suggested that
a combination composed of the
Bangor and Arostook. the Central
Vermont. and the Rutland and
either the New York Central Lines
or the Delaware & Hudson would
be one solution of the difhculties of
the New England section. One rail-
road expert says that it would take
ten years to work out a compre-
hensive plan of consolidation as
outlined in the transportation act
The Federal Reserve Bank of
this district makes a remarkably
favorable showing in its reports
for the week Ratio of reserves is
S9.1, the same as in the preceding
week. but this ratio is maintained
where n decrease had been ex-
pected. due to tax and Treasury
certificates operations of December
Is. The most notable change is
the reduction of sI06.O4s.00o in re-
discounts. A decrease Of s2s,ooe,-
600 in gold, of which s1s.000,00 is
in the settlement fund, indicates
that some gold still is flowing out
of the country. Treasury certificate
holdings are up some $50. 900 as
Is to be expected. Circulation shows
a nominal increase of 100000 due
to holiday needs. Bills discounted
secured by government paper in
creased about s40.000.eo0. approxi-
mating the increase in holdings of
certificates. Interior banks evil
IDENTIFY drew on New York for con-
siderable funds Due to the holi-
days the bank will issue their re-
port on Friday OF the next two
wseks