Evening star., 1921-10-26
MDUSTR|A[SLEAD
THE STOCK LIST
Steel Earnings Give Encour.
. agement to Traders-Spe-
CiaItieS Lead Advances.
BY STUART p. WEST.

NEW YORK, October 26.-There
were no essential changes in the sur
roundings Of the financial markets
To-Day. The one development of con-
sequence was the quarterly report of
the Steel Corporation, published after
the close of business yesterday. This
report realized the best that was an
ticlpated of it. showing a progressive
and fairly substantial, gain month by
month through the period. The in
crease from July's extreme low of s5.-
I2i.0oo to the S7.257.00O net earnings
OF september was another important
bit of testimony to the extent of the
1rade recovery which has occurred.
Inc S2. .OO0 gain in September rev.
enues Is the two-fold result of low
ered wage scales and enlargement of
plant activities.
The advance in prices in the lighter
steel lines did not come in time to in
nuence the result Their effect will
appear in the earnings of the current
quarter.
The steel figures had less effect
upon the steel shares themselves
than upon other parts Of the indus
trial list.
They strengthened the ground
upon which the market has been
proceeding, namely. that July definite
ly marked the bottom of the great
were entitled to discount a generous
measure of improvement.
Oils Are Active.
The principal interest centered
upon some Of the oils, the sugars.
the boot and shoe issues. the chain
store stocks and the shipping
groups. These and various others
were bid up as they were yesterday
in the face of marked heaviness in
the rails.
Word from Chicago that the rail
executives had refused to put off
their efforts for further wage reduc-
ton at the request of the Labor Board
was favorable SO far as 1t went. The
one sequel to the whole controversy
which will be accepted as satiSfac-
tory from tie standpoint of railway
Investments. is for the roads to be
left free to lower wage costs and
keep pace with present and future
rate reductions.
But what the. market was still re-
fiecting today was the fear that at
the last moment the carriers would
be compelled. through pressure from
Washington. to postpone their new
wage programs indefinitely.
Steel Common.
Steel commons response to the
Quarterly earnings report was a gain
of three-quarters of a point at the
opening. For the entire quarter oper-
ations came out rather better than
the preliminary estimates. The net
of nearly $19.000.000 was million or
so more than the street had looked
for. and the deficit after dividends on
both classes of stock-s6.9 .OO0-was
not as bad as was reckoned upon But
the main point of interest was the
comparison by months. Predictions
that the market would take the Steel
statement as bullish. if it showed a
progr essive gain month by month
during the quarter. were verified. The
increase for September over August
was less than that for August over
July. But the significant thing was
the contrast between the July net Of
S5,157, 900 and the September net of
s7.257.00O. Here was the proper
measure of the improvement which
has occurred. and the market. looking
to the present and future rather han
to- the past, completely ignored the
fact that the Steel Corpora tion mad
had to draw again upon its surplus in
order to maintain the dividend on the
junior Sharea