The New York herald., 1921-10-20
FINANCIAL NEWS
AND COMMENT
Stock Market Movements Are
EIratic-Pullman Shorts
Driven In.


developments in the railroad situation
which had Immediate application to
price movements. and so turned Its at
tention to other influences. several Of
which were Of such diverse meaning
for speculation that stocks wero moro
irregular than they had been on other
days OF this month. The unusual sight
OF q strong advance OF American Sugar
issues was seen at the Same time that
several Of the steel group were being
forced back. 1t remained. however. for
a swift upturn OF more than points
in Pullman Company stock to show
even moro completely than did any
other issue the upset OF bear CAM
paign which had had a prosperous ap-
pearance for several weeks The days
market was shaped by the sugar and
Pullman price movement in large part,
as tho rise was caused by information
about dividends, and their strength un-
doubtedly helped make many other in
dustrial issues firm. Several railroad
shares advanced moro than q point, but
the list as a whole was dull and steady.
Official announcement that the next
American Sugar preferred stock divi-
dend would be paid and that reported
new financing was remote. together
with the declaration OF the regular divi-
dends by the Pullman Company for
two quarters instead Of one. destroyed
the material of which much bearish
propaganda has been made. Tho long
period OF dividend elimination during
the summer brought the speculative
community to a frame Of mind in which
Il was easy to give ear to ruInors OF
adverse action by directors of most
corporations. There have been few oc-
casions this year when the bears were
caught as flat footed as they were by
the Pullman decision yesterday. It Is
reasonable to assume that the manage
ment was fully aware OF the speculative
pressure against the conpany's stock.
Hence q degree OF humor infrequently
credited to flnanciers seemed to be at
tached to the vote for six months civi-
dends when short sellers had expected
q cut.
Although the railroad controversy was
in stage which hardly permitted assur-
once that there would be no strike.
the Streets belief in a solution Of it
without a walkout was strengthened
during the day. News from Chicago
and from Washington Indicated that
the Administration was counting much
on the powers OF the United States Rail-
road Labor Board to settle tho trouble
and 1t looked late in the afternoon as
though concessions by both parties
might be arrived at through a read
5ustnent OF certain freight rates. pre-
suniably. to be followed or accompanied
by revision of wage accounts. But Il
was made plain. nevertheless, that many
railroads were preparing to recruit labor
If the union threat Of strike was car
ried out. and the head OF the Association
Of Railway Executives reiterated the
opinion OF that body In saying that
tho cost Of transportation cannot escape
the operation OF forces which are over
whelming in their compulsion"
Ing. primarily, that wages must accom-
pany freight charges downward.
Cotton recovered, several options ris-
ing nearly as many points as they de-
clined the day before. Wheat, how
ever. felt the onus of further large Of
ferings after an initial recovery. which
appeared to result from the filing Of
several stable export orders. Final
prices were down 1ia to 2 cents q bushel.
reaching new low points for this years
crop.
The steel trade Is not worrying yet
about a railroad strike. Tho weeks
trade reports show that mill operations
are holding up to the ratio of the pre-
ceding week, a moderate increase to A
per cent of capacity being reported by
several plants IN the Chicago district
This Is Of greater worth as an economic
influence of moment than are the poor
results of the Republic Iron and Steel
Company IN the third quarter Of 1891.