The New York herald., 1921-08-30
FINANCIAL NEWS
AND COMMENT
Stock Market Moves Irregu-
larly-Local fractions
Fall Sharply.

The decidedly uneven appearance OF
stock market prices throughout yester-
days session was accounted for in large
part by rather unusual mixture OF
news and events bearing on speculation.
Railroad shares and several industrial
issues made good response to construc-
tive factors having application to them
General Electric, as an example, ad-
vanced more than points before urgent
short covering ceased and left off
points and more above Saturdays Anal
price. This was the natural product or
the company's announcement OF a strong
cash position and not unfavorable
situation as to current business. while
the official statement on the corpora
tons dividend policy was uncomfortable
to the bears. The movement of General
Electric shares undoubtedly had an
effect in stimulating short covering else
where.
The market showed that it had become
hardened to developments OF a dismal
character in the local traction field by
paying relatively little attention to the
application for a receiver for the subway
system. The Interborough Rapid Transit
bonds and notes broke down abruptly at
the opening and other funded issues of
the local companies We're decidedly
weak, but as the situation of street car
concerns had been aired thoroughly dur
\
| ships had been rather numerous, the
proposed court action was not surprising
to the Street. The irony surrounding
| the event was, perhaps what the trading
community considered to degree
greater than the financial catastrophe
which threatens the underground road
and its affiliated properties. for the COM
pany gets into the courts just as operat-
ing costs begin to recede, Immediately
after the employees have registered an
effort to help by accepting a 10 per
cent. wage reduction. As the situation
seems to hings on the fate of the $3S,-
000.0 in notes which mature on Sep
tember /, for which an extension Is being
asked OF note holders 1t Is to be hoped
that sufficient consents will be received
to enable the Interborough to devote its
cash resources to the liquidation of
merchandise bills. as economic condi-
tions promise to forward more effective
operation OF corporations Of this class
as time goes on.
The publication of long list of rail-
road earnings In July continued the tale
of shrunken gross receipts turned into
substantial gains of net operating reve-
nue. through reduced costs The Balti-
more and Ohio supplied feature in
that respect. fall of s2.534, 500 in gross
being accompanied by net income actu-
ally s7.S25, 900 larger than in July. 1920.
when the road had deficit in excess OF
IS, zoe, 900. The Atchison's net revenue
OF s6.02S.o00 was more than 80 per
cent. greater than 1t was a year before.
and that OF the Chesapeake and Ohio
was FIVE times the net result in July,
1920. In viewing the product of re-
trenchment Of expenses last month,
year before the railroads were begin
ming to figure into outlay back wages
as the result of the increase that went
into effect in June, 1920. but that does
not nullify the exhibition which the
roads are giving of success in cutting
operating expenses.
The cotton market again rose with
vigor. the greater part of the days
maximum increase OF a half cent, q
pound being retained to the end OF
trading. The consistence OF cotton's up
turn in the last six trading days sug-
! gests that more than short covering
has been under way. With the several
| options breaking through the 16 cent
level. less will be heard about produc.
ton costs being In excess OF selling
prices. Wheat was firm, although the
presence OF export orders OF a rather
small volume prevented any marked
bulge.
Call money was per ce.lt. on the
New York Stock Exchange for all loans
Outside 1t was loaned at AZ per cent
The indication that the investment
market will feel soon the effect or ro-
iaxing money rates was disclosed in
news OF a s25.0o0.o 900 Brazilian Govern
ment per cent. bond offering here.