Evening star., 1921-10-27
MARKET AWAITS
NEWS ON STRIKE
Shorts Run In on Rails and
InduStriaIs-Not Much
Action.
BY STUART p. WEST.

NEW YORK, October 27.-The stock
market today showed little DISPOSE
: tion to do anything fresh pending the
settlement of the railway strike un-
certainty.
Traders who had taken the short
position were more uneasy. however.
than operators on the other Slde.
There was more covering OF shor!
p contracts than there was selling OUT
of long stocks.
Profit-taking occurred in some OF
the oils early in the session.
This was much more than onset by
the strength in a number OF other m
dustrials and the railway list itself
where spectators for the decllne
were taking in their commitments.
The view which governed the course
of the days price movements again
was that the union leaders. whatever
they may be saying for publication
realize that their cause would be
test. Consequently, 1t is felt that
they would be glad to accept a pro
posal from the Labor Board that the
strike order be temporarily WIN
drawn in return for the pledge that
there would be no further wage re-
duction or revision of working rules
until all the facts in the case hao
been thoroughly Investigated.
From an immediate standpoint. TINS
outcome would, no doubt. be regarded
scarcely possible. however. that SO
far as railway investments are con-
cerned. such a settlement would be an
argument in their favor more than
temporarily. 1t would be merely
determined whether or not the car
: riers are to be left free to reduce
their labor costs to correspond with
. the actual and prospective reduction
: of their freight tariffs.
shorts Cover.
The brief run up of a point or so in
the railway shares meant nothing ex-
cept that there had been consider
able short interest and that this was
anxious for the time being. TO be rio
!. of its obligations.
The motor stocks were supported
partly in anticipation OF faVoraoie
, report for the September quarter by
Studebaker and partly on rumors OF
. a new combination between two in
terestS which have been credited with
playing big roles in time past in the
speculative market.
Oil shares after their early irregu-
larity resumed their advance under
. the lead of Pacific Oil. which made q
new high.
Crucible was the leader Of :he steel
group
Professional energies were directed
particularly today toward a few indus
trial specialties which were popular OBJ
iectS OF short selling a fortnight or SO
ago. and IN which the short interest
had not been fully covered. These
stocks. on account of their technical po-
:ition, seemed to offer the easiest road
to profits.
They were International Paper. the
Central Leathers, Industrial Alcohol.
Il -nit Stota P,,h nd
In the case of International Paper the
street greatly overpiayed, in the sum-
mer bear market, the German and
Swedish competition idea. This took no
account Of the large addition to treas
ury assets. due to the policy Of the
the war years and Of 1919-1920 pile
up, without distributing anything to the
common stockholders.
The bear account in Central Leath-
ers has been very heavy all along 1t
expected to be able to cover on the
publication of the third quarter earn
ings, and got a bad jolt when. al
though the deficit was as large a 8 ex-
pected, little or no long stock came
,out. Under these circumstances 1t
was an easy matter to drive the
shorts in, and the rise did not neces-
sarily indicate any change in Central
Leather's business situation.
A Strike View.
The following Is a view of the
strike situation as expressed by q
partner in one Of the Broadway wire
houses today: From talks with many
owners of railway stocks and bonds
we gather that it would be accept
able to all hands among them to go
: to the mat with organized railroad
labor right now, as there have been
very few occasions when the argu-
ment of reason as confronted with
dema gogism or organization. unsup-
ported by dependable statistics. has
been stronger than at present. If
there is TO strike we may see very
brief gen4al recovery; if Il strike
comes the momentary influence may
be bearish. but the outcome from an
economic situation as it exists today
, is sure to be constructive for long