Evening star., 1921-05-31
|NDUSTR|ALS ARE
UNDERPRESSURE
Declines General Through
out the List-Rails Are
Fairly Steady-Notes.

NEW YORK, May 31-Hesitation
and uncertainty marked the resump-
ton of trading after the three-day
stock exchange holiday. In the main
price movements continued to be af-
fected more by the immediate trade
outlook as evidenced by price cutting
in the motor industry and doubt as to
dividends in that and other directions
than by the long-ranSe outlook. the
favorable aspect of which had not
changed since Friday.
Railroad stocks were an exception,
Influenced doubtless by the knowi-
edge that tomorrow the labor board
will announce the extent of the wage
reductions to go into effect on July l.
The financial community has put much
stress on the exact extent of the
saving to be effected in this direction.
the generally accepted figure of 10 to
10 per cent having been received'with
more or less disappointment.
It must be evident. however, to
any one who studies the April earn
Ings reports that another factor has
come to the rescue which. working
with the expected wage reduction, no
matter how small the amount of the
latter. will eventually go far to solve
this difficult problem. Sweeping econ
omies already put into effect and fall
ing prices for fuel and materials are
helping turn operating deficits into
net income, even at present wage
levels.
Rails Comparatively Stendy.
or course. there are now and al
ways VIII be railroads with indi-
vidual handicaps TOO great TO be
overcome by any aid which will prove
sufficient 20 th" Majority. IL is hard
to see much prosperity in store for
the New England roads. But in Ihe
main Improvement seems to be as
sensed this by the comparative s;eadi-
ness OF railway shares.
OIL stocks were inclined to be
heavy. The passing Of the usual
quarterly dividend by Oklahoma Pro-
ducing and Refining was not a. help
geological surveys figures showing
that petroleum supplies had con-
tinued to pile up for more than a
year were not calculated to induce
buying of oil securities. The quan-
tity of crude oil now in storage is
Moreover. during April production
cintinued to increase. amounting ID
100000 barrels against 35,6o0,000
year ago.
Sugar shares were definitely weak.
the same conditions obtaining as
| months past Today. also, there was
renewal of skepticism as to the
declaring next month of the divide n d
on Cuba Cane preferred. notwith-
standing assurances from quarters
which ought to be well Informed. II
this dividend is passed it will be an
other Illustration of the easy way
in which industrial profits of the war
period take wings and fly away.
Either that or doubt as to whether
| or not there may he depths OF de-
preston still unsounded by the
sugar-producing companies.
Motors Easily Raided.
Motor stocks continued to be the
sport of the bearishiy inclined specu-
latcrs. Operations were purely pro-
! fessionAL They had the cut in prices
announced by the makers of the
Buick car as ammunition.
Foreign exchange opened weak and
then rallied. sterling selling at $3.S7
| of ,1s cents. and francs at SGT. about
| the same as Fridays close. No new
light was thrown on the causes for
, the recent slump in sterling. but the
view that it was due chiefly to op-
era,ions preparatory to reparations
! payments by Germany was more
widely accepted.