Evening star., 1921-03-03
MARKET IS SLOW;
|NDUSTR|ALS SOFT
BY STUART T.. WEST.

NEW YORK. March 3.-Again today
it was in other directions than the
stock market that the financial COM
munity had to look for evidence of
sentiment regarding the critical de-
velopments at London. Even in these
directions, moreover, the testimony
was most confusing.
Quite heavy selling occurred in
bonds of the allied countries, which.
in the event of an extensive cam
paign into Germany, might be called
upon to expand their already huge
load of debt. With French and Bel
gian issues at their low points, and
United Kingdom 512 s of 1897 off at
one time over point, it might have
been inferred that the markets were
preparing for definite break-off Of
negotiations with the German repre-
sentatives. Yet it was hard to recon-
cile this view with the movement of
the exchange market.
Amy serious uneasiness might have
been expected to show here, inasmuch
as by common consent the varying
prospects of success or failure on the
reparations question have been the
controlling factor in the fluctuations
of the exchanges for the last month
or more. But, as it was, sterling ad-
vanced quite sharply, selling well
above where it left off at the close
last week, and continental rates. not
excluding German marks. all moved
forward.
Rails Fairly Firm.
The stock market throughout main
tanned a waiting attitude. There was
absolutely no selling discernible, be-
cause of the latest London news. But
the prevailing inclination was to do
very little trading in the market until
pre den "a. II hoI 1a hiy
inaugural speech and until there was
more light thrown upon the answer
to the allied uitimatum which Ger
many has promised to give between
now and Monday.
With the greater part Of the list
marking time attention was given en-
tirely to the movement in a few spe-
cial issues which were being bought
or sold for specific reasons. Chandler
Motors was the weakest of anything
in anticipation that the dividend to
be acted upon next week will be re-
duced substantially from the present
SO rate.
On the ether hand, when the Utah
Copper directors announced the cut
ting of their dividend from a Sc to a
81 annual basis. the stock bounded
forward sharply.
The regular dividend on Atlantic,
Gulf and West Indies preferred was
looked for late in the day. and the
stock rallied sharply after weak
opening. There were some lively ad-
vances among the low-priced rails
including the shares Of companies
which have been showing none too
well in their earnings reports.
Low-Priced Rails Favored.
St Louis and San Francisco was
one of the favorites, although the
company put out only day or two ago
its January statement. showing a very
heavy decrease. St. Louis Southwest
ern common was also heavily bought
despite the fact that for the first four
months under private operation moth
ing was earned on the Junior shares
and the per cent on the preferred
was scarcely covered.
To be sure, there was also sharp
upbidding Of Kansas City Southern
and Colorado Southern, the stocks of
the two roads, which have been
showing up very well in their earn
ings.
But IT was evident that in most of
these low priced rails the incentive
for the buying was not current earn
ings results, but rather the possi-
biiity of combinations under the new
railway act.
1t may be interesting to recall that
after the panic of 1907. and the sub
sequent stagnation through the early
part of l90s-in many respects a rep
1ica Of the present condition-caYne
the big bull market in railway
shares. the inspiration for which was
furnished by combination deals and
rumors of combinations. which. if
they did not materialiZe, at least had
very important temporary effect