The New York herald., 1921-10-15
FINANCIAL NEWS
AND COMMENT
Fears of Clash of Roads and
Labor Weaken Prices of
Rail Stocks.

lne attention OF the STOCK market was
drawn yesterday TO the railroad situa-
sion in respect to wages and freight
rates and the possibility of a clash be-
tween the roads and groups Of their
employees had an unpleasant sugges-
tion, which was reflected in share
prices. The financial community had
considered a rail strike as a remote
! thing, not likely to develop during the
present period Of sluggish business.
Isut when dispatches from Chicago.
worded in a dramatic fashion, told Of
union leaders, with "a strike call In
their pocket" asking for conference
with railroad executives. rail stocks be-
gan to recede and carried other groups
with them. At the close active petro-
leum. steel rail and other issues were
point to points lower in many cases
than they were on Thursday.
The railroad outlook Is beginning to
thrust Industrial matters into the back
ground. and 1t seems likely that before
the Chicago conference is concluded inn
portant. perhaps striking. events viii be
In the making. At the present writing
IL looks as though any movement toward
lower freight rates instituted by the
carriers will be hinged on n reduction
OF wages. The unions evidently have
taken the field. making counter Of
fcnsive to protect the current wage
schedules. The decision OF the United
tata Pot \ oh, E1o xI -,
piece work in the railroad shops. pro-
vided the employers can negotiate terms
with their workers on that basis. is en-
couraging to rail managers, but the rul-
Ing appears to complicate a situation
already made delicate by the vote of
majority OF certain classes of railway
workers to strike If their leaders give
the word. The Administration has been
active in urging the executives to find
way 10 cut rates In order to stimulate
business. and it is not impossible that
the influence of Washington will be felt
strongly in case that deadlock be-
tween the roads and their men occurs.
The fact that Government officials and
railroad executives conferred at length
over the problem before the Chicago
meeting indicates that the plans Of the
carriers are well known In Government
circles, but the financial interests do not
know yet the scope of railroad propo-
sails and the true temper Of the workers
remains to be measured.
The first half of the stock market ses-
sion yesterday did not forecast what
was to happen In the afternoon, al
though rails were heavy. Oil issues con-
tinued for a time to go forward, a new
st.mulant being supplied in the fourth
advance to be made in the price of
Pennsylvania crude petroleum In two
weeks. That grade of oil, now at 1926
a barrel. has risen 40 per cent. from its
lowest price of this year 1t may be
that the recovery in that market, just
like the Improvement of cotton prices.
reflects a condition of short supplies
and to a degree forecasts an improve
ment of business to come. But IL the
analogy to cotton be carried out the
rise of oil quotations will be subject to
setback sooner or later.
The statistical position OF cotton re-
mains strong. yet the cotton market
showed yesterday that other factors
Continued to exert much influence on
prices. The Government consumption
report stated that 4S5.000 bales were con-
sumed by the mills In September, the
largest total for any month since July
1870. and exports Of $4,000 bales during
that month made the largest outflow,
with the exception Of the JulX total OF
527,e2S bales, since January. Cotton
futures were 20 TO 25 points lower dur
ING the morning than they were at
Thursdays close. and later recovery
left the list nervous and irregular. not
much changed on the day. Wheat
prices rallied sharply.
The call money situation was dis
tinctly easier than 1t was on Thursday,
the rate getting down from to per
cent. While marks showed no improve
ment, sterling rallied more than 2 cents
to the pound and most Continental