Evening star., 1921-10-24
Stocks ARE FIRM,
WITH FAIR ACTION
Equipments and Specially
Shares Are Leaders-RaiIs
Are Nervous.
BY STUART p. WEST.

NEW YORK, October 24.-The i'm
provement in railway labor outlook
over Sunday was the main thought
back of the markets today.
Railway shares were not the ones
most affected. although they were
stronger. The Industrial and public
utility stocks were the ones most
favored. because with them is no such
uncertainty as confronts the rails, in
event that the strike is averted.
Industrial companies stand to bene-
fit by the reduction in freight rates,
while they are. of course, keenly in
tereSted in a favorable outcome OF
the wage controversy.
But the railroads may be told by
the government through the labor
board that they must hold up in
definitely the 10 per cent proposed
reduction while submitting to sweeping
cuts in freight rates. as were announced
by the Interstate Commerce Commits
sion on Saturday.
The advance in the industrial sec
tion was not general one. 1t took
in a majority of this class of stocks
but by no means all of them. Motor
and motor accessory shares. stocks
of shoe manufacturing companies. q
number of the oils and one or two
of the equipments, especially Bald
win Locomotive, were bid up sharply
without having much effect upor
other quarters.
Sugar shorts Cover.
Although there was nothing in th<
least to suggest a turn for the bet.
ter in the sugar trade. the sugar
stocks had a short interest thai
proved vulnerable. There was quite
a remarkable demonstration in some
of the gas stocks, notably Consoli.
dated Gas and Brooklyn Union Gas
but here again there was nothing be.
yond the familiar explanation thai
the gas producing companies now
have their costs down. while receiv.
ing much fairer treatment in thu
main from regulating bodies.
Railway stocks went up half 8
point to a point and there stopped
Nothing will be clear in their situation
until after the Chicago conference mex
Wednesday.
Special stocks Strong.
After the first half hour ar so thu
general list was inclined to hesitat,
and the stage was occupied by dozeI
or SO selected issues. The activ,
trading element, as fast as 1t saw
these specialties start, would hurry tt
get into them while throwing ovel
other things. Houston Oil had an
other violent rise. although most Of
were marking time after their ad
vance last week. The big people gath.
cred In the floating supply of The
Houston stock some time ago in the
forties and fifties, and consequently
there is very little of 1t for sale a.
spectators mark the price up. Endi-
tt-Johnson. the sugar stocks. the
MI ana a nipS-
Consolidated. Peoples and North
the other favorites.
Compromise Likely.
AS three-quarters of the railway
union members have refused to qui,
work at this time, it is easy to be-
lieve that the brotherhood chiefs
would welcome any sort of compro-
mise that the Labor Board might
propose.
From the standpoint of the carriers
who see an easy victory in sight, the
great fear is that the Labor Board
will refuse to consider another wage
cut and order the executives to post
pone such action indefinitely. while al
the same time demanding of the
unions that they revoke their strike
decree.
This mode of settlement. with
freight rates going down, would be a
they def1ed the ruling Of the Labor
Board, they would run the risk OF
having the government against them
in their contest with the men.
Central Leather.
The Central Leather statement. due
this week, probably tomorrow, is ex.
pected to show another loss of ap.
proximately S2,000,0oO. This com.
pany appears to be still in the throes
of it's readjustment period, because
it's main line of business. which is
that of the coarser grades of leather
has not yet turned the corner. There
was time earlier in the year wher
it appeared as if the business OF
Central Leather was getting better
but this did not last.
AS the present Wall street situat tior
appears to the majority of expert.
enced observers. the market is a
trading market. There is pro.
Eounced upward tendency. but this
does not mean that reactions will no,
be frequent. Moreover. the principal
buying and selling originates with
professionals. looking for quick
profits. and~this kind of thing always
means sudden twists and turns to the
VI nf