Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-07-21
BROADER INQUIRY
ENLWENS MARKET
Wall Street, However, Is
Marking Time Pending Rail
Wage Award.
BY STUART p. WEST.

as ecu lIdt lHe increases were
satisfactory to the rank and file but
this is always the professional labor
attitude on such occasions. Between
protesting disappointment and taking
the risk of a strike. which would GER
talnly not be approved by public SEN
timent. there is a very great differ
ence and there was an underlying
note of confidence in the way Wall
street looked at the outcome this
morning.
No doubt a market in which weak
holdings were numerous would have
SHOWN some sensitiveness to the pre-
Nalllng uncertainty. The possibility
of vast railway tie-up in the present
delicate railway and credit situations
is almost unthinkable it is so serious
But a market in strong hands is able
to reason calmly. 1t is not swayed by
sentimental considerations. 1t is
usually disposed to see the bright
side of things.
Attitude of CompIacence.
SO wall street today, while doing
very little until the action of the
labor leaders should be known, adopt
ed an attitude of Compacence. 1t
even ventured to back up its iude-
ment that there would be no strike
by bidding up the railway shares a
point or two under the lead of Read
ing, Southern Pacific, Unicn Pacific
and southern railway
This upturn was d brief one, still
IT was significant that the gains
should have been well held This
shows that the movement was not the
result of short covering, but rather
of new buying expressive of conf
dence that while a referendum might
be ordered and strike decision post
poned for over a month the findings
OF the Ia Dor board would in the end
be accepted.
Meanwhile there would come the
rate decision and with it the chance
for moderate speculation in railway
stocks
Although the tone was steady on
the curb market today, there was a
sharp falling off in business. and
price changes generally were confined
within fractional limits. Some of the
SpecialtieS at one time, however were
close.
The mining group was active and
many issues recorded good upturns
Sharp Break in Sugar.
Nearly all of what little activity there
was in the days trading was con-
fined to the first hour. 1t was then that
the demonstration in the railway
market relapsed into dizziness more
extreme than ever.
A sharp break in the sugar stocks
followed similar decline in the price
oI raw sugars IN the optlon market
This one group, which apparently
had not been sufficiently liquidated.
was, therefore, a profitable target
for bear attacks. Some special strength
was shown in United States Food
Products, and for time in Corn
Products. The equipments, after being
quite strong at the staSt, lost most of
their gains.
These were among the very few in
cidents worth noting in the market of
the day.
Money conditions were UNCHANGED
from yesterday. There was an album
dant supply for Wall Street purposes at
3 per cent, and it was expected that
this would be the prevailing rate for
the next month to month and half
With commercial paper in keen demand
all over the country at per cent, any
lower level for stock exchange loans
would, of course, be an anomaly. This
is so we'll understood that an s per
cent call money rate is regarded now
aways as indicative OF a comparatively
easy situation.
Sterling exchange remained around
1888 y most of the day. at which figure
it was unchanged from yest"-'ay.
Pnn-American GnerAn..
There is no doubt that while the
main purpose Of the $4,000 900 Pam
American note Offering is to provide
funds for new tank steamers, there is a
secondary motive almost as important
This is the opportunity afforded under
the new merchant marine act to dimin-
ish payments for income taxes to all
concerns which go in for shipbuildins.
The act provides that for every SO spent
on new ship construction 81 may be de-
Quoted from income tax.
The Pan-American, therefore, in vot-
ing $10.000.000 to building a new fleet
Of tank steamers, can write off over
$3,3O0,OO0 from the tax which would
n a ri haS va to he
out that there are a number of other
concerns in the same position, and it
Will not be surprising if there is a gen.
eraI movement among companies inter-
ested IN the export trade to build ships
for the sake of the relief which they
Will get from taxation. Such companies
include Atlantic Gulf and West Indies.
United Fruit, American International
and American Ship and Commerce
Reading Stock Absorption.
For some time past all observers
nave agreed that the absorption of
Reading stock in the market has been
of very strong character This buy
ing has not been inclined to follow
the price up. 1t is usually stopped
around 81. On the other hand. it has
reappeared on the scale when the rest
or the market has been weak. The
Heading has been considerably re-
duced as compared with what it was
fortnight ago and very much re-
duced as compared with six months
ago.
The effects of this accumulation
were readily apparent this morning
when buying turned in to the rail-
way group. Reading was the leader
and ran up rapidly. the extent of the
rise being out of all proportion to
the volume Of buying.
One of the market letters TODAY
called attention to the fact that
brokers' loans are reported very
close to $90O,000.000 which is the low.
est IN a very long time" The letter
went on to say that this was evidence
tnat the public was out of the market
more than it had been in several
m onths. and that "it is inconceivable
that between now and September
cheap"
The Railroad Situation.
Most of the comment in the wires
sent out by Wall street houses today
dWelt upon the effect of the railway
situation upon the market. A majority
LOOK an optimistic view of the situa
ton, but there were those who saw
little prospect of any Immediate inn
proVement.
one of the more optimistic houses
had thls to say: While this dullness
continues there is steady accumuIa-
tlon or the rails by the large interests
VINO nave faith in the ultimate out
some or the present situation. One
tnlnS that should not be overlooked is
tnat the news has been and is as bad
as IL can be- There can only be one
cnange and that is for the better"
ODDOSed int