The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1921-10-25
STOCKS DISPLAY
FIRM UNDERGONE
IN ACTIVE TRADE
Equipment and Coppers
Strong, While Rails
Retain Firmness.
SHORTS ARE ACTIVE
Selling Activity Followed by
Considerable Volume Of
Short Covering.

NEW YORK, Oct. 2I-In moderately
active trading. the stock market, stiH
largely In professional hands. dis
played q firm undertone Opinion
continued extremely skeptIcal as to
the likelihood Of a railroad strike and
the foreign news left practically no
impression on prices. A brief wave
Of short selling At the start was fol-
lowed by q considerable volume Of
short covering. Equipment and COP
per stocks were notceably strong and
rails were nrm throughout Certain
Of the independent steel issues reacted
on the basis OF the cut In ran prices
and foreign oils also lacked strength.
Domestic oils. however, were stiii m
demand. Call money opened at 8 per
cent went to 81 shortly after
o'clock, and to per cent At the start
Of the last hour.
Tax Action q Factor.
The stock market would undoubtedly
have made q better response 10 the
railroad strike news today II that
factor had not been counterbslsnced
by the Senate committees action in
reporting out the tax revision bill
containing a maximum surtax rate Of
so cents. Although sentiment in the
Senate turned definitely toward this
high rate a long time ago. Wall Street
entertained some hope that a com
promise would be effected between 50
per cent and the 50 per cent rate
which was embodied in the House
bill. The worst aspect Of the Senate
tax bill In its establishment Of Wall
Street on the score Of Washingtons
attitude on big economic problems.
The only other development over the
weekend that might have become a
factor in the stock market today, was
the attempt Of the former Emperor
Charles was making to regain the
Hungarian throne. As a guide to the
political importance OF this coup. the
market community took its cue from
the foreign exchanges. When the in
itial rates revealed no uneasiness
abroad. the market practically ignored
the Hungarian situation
Steel Situation.
The speculative community gave full
consideration over the holiday to the
reduction OF 81 a ton in the price OF
steel rails, announced by the Steel
Corporation on Saturday and opened
for business this morning apparently
convinced that the lower price. even
IL It did permit Of q profit. was con-
structire from q long-rsnge view
point. UndermRintenance OF the rail
roads has been pointed out recently
as one OF the principal reasons why
the carriers have been able TO re-
port such remarkable improvement in
earnings for several months past
The Street believes that economies
along this line have created great
potential demand for rails and that
in reducing its prices, the Steel Cor
poration is making a strong bid for
this business The steel stocks made
no definite movement in either direc-
ton today.
Mental speculation on the earnings
statement that will be made public
by the Central Leather Company to-
morrow engaged Wall Streets atten-
ton during the dull periods today.
J-noficial statements Of earnings
ranged from a small deficit to small
profit, either OF which would register
! Improvement over the second guar
ter. The company showed a deficit
Of s6.2sl 900 for the June quarter
without any part OF the loss being
laid to inventory write-on. The op-
Grating loss alone was S4.455.OO0.
| There has been a notable improve
ment in the leather INDUSTRY SINCE
early summer. but the most optimistic
OF parties interested in Central
Leather do not believe that the sd-
vantsges derived by the company
were more than sufficient TO change
a deficit Of S6,2s1 900 into a small
surplus.