Evening star., 1921-03-01
MARKET IS T|M|D
AND PRICES SOFT
Importance of London Con-
ference Seen-BurIington's
Refunding Plan Vetoed.
BY STUART p. WEST.

NEW YORK. March 1.-The Wall
street market continued today to fix
its mind upon developments affecting
the selling prices of Individual stocks
rather than upon any broad survey of
the financial situation generally. The
continued unsettlement and partial
weakness in the share list could not
very well have been ascribed to mis-
givingS over the London conference
on reparations when the foreign eN-
changes were showing precisely the
reverse. Sterling exchange was
stronger tfan on any day for a week.
Continental rates. while not rising as
much. Were generally higher, and.
what was particularly significant, Ger
man marks had their full share OF
the gain This recovery in the eN-
changes. while not conclusive. sud
denly pointed to a more hopeful at
titude regarding the outcome of the
London negotiations tran prevailed
in banking circles at the close of last
week.
This did not show in the stock ex-
change trading Of the day. merely
went TO demonstrate that important
as the settlement of the German
reparations question is for the trade
and economic situation at large, 1t Is
not counting as much in the imme-
diate price movement as other mat
ters nearer home.
Again today. as has been the case
discriminating market
. Stocks of companies which have
been through their readjustment, about
which the worst is known in the shape
of earnings, decreases and dividend re-
duction, stood up firmly.
Depends on Position.
So. likewise, did all stocks of COM
panies which are known to be l.
satisfactory earnings position. But
where there was question of unfavor-
able earnings reports yet to come, or
of dividends that may possibly be cut
or passed. the stocks concerned proved
more or less vuinerab BILE to attack.
Railway shares were considerably
upset by two incidents-first. the un-
expected refusal of the Interstate
Commerce Commission to approve the
Burlington refunding plan: the sec
ond, the Pennsylvania railroad report
for 1920, showing deficit in actual
transportation revenues of over S4s,-
100000.
The action of the commission places
the Hill roads in an awkward posi-
ton. They have only four months in
which to arrange for the enormous
maturity of S2l5 .000. .000 on the 4 per
cent collateral bonds. and they must
attempt this financing in market
which demands 624 TO y per cent
return even upon the highest grade
investments.
Northern Pacific stock broke badly.
but Great Northern preferred. not
having had similar rise. was by no
means as weak. The heavy selling
Of PENNSYLVANIA although not very
logical when the complete situation
regarding the earnings of the road
is studied, had a disturbing effect
upon other of the standard rails Tx
pectation of a series OF very poor
earnings statements for January also
had a bearing upon the heaviness in
the railway list.
Pennsylvania Heavily Sold.
Heavy selling of Pennsylvania,
carrying this ordinarily slow-moving
stock down nearly a point, followed
the publication of the 1920 report. On
railroad operation proper, including
taxes. there was a deflc1t or S4s,44f,-
600 on the year. This was changed
into a net income of S32, 100000 as
the result of the inclusion of other
items of revenue not derived from
transportation.
This was equal to a little more than
6k per cent on Pennsylvania stock, or
slightly more than the dividend re-
Quirements as against Sk per cent the
previous year.
In view of the fact that the report
took account of the eight months of
1920 preceding the rate increase and
only covered four moaths of the more
favorable conditions afterward pre-
SdiiluS, ihiS T" 40 HoS At al Df1N-
Certainly it did not warrant the mis-
givings expressed in some quarters
regarding the Pennsylvania dividend.
Eut the only view which the specu!a-
tive element in it's beariS1 mood could
take today was that the Pennsylvania
OF its own operations had failed last
Year to earn its operating expenses
and taxes by IA considerable margin
ard that the monthly statements fer
:ne first quarter If the present year
would probably show that this situa-
ion had not been mater',', relieved.