The New York herald., 1921-10-26
FINANCIAL NEWS
AND COMMENT
U. s. Steel Report Reflects I'm
prOvement-Industrial
Stocks Strong.

To the extent that statistics support
verbal comment on Improvement In bust
ness conditions, the quarterly statement
of the United States Steel Corporation.
issued yesterday. bore ouf the general
belief that the steel and iron industry
reached its greatest depression in July
and thereafter turned upward. The three
months ended on September so. as had
been expected, showed more pronounced
inactivity by the company than did the
quarter ended with June. But the COM
pany's net earnings in August were "a
per cent. higher than those OF July and.
in turn, in September showed gain OF
nearly 12 per cent. compared with that
OF August. Although the $5,157.395 of
net income after subsidiary company
bond interest was paid made the result
of operations in July about the poorest
of any month since reports were made,
the balance after interest in September.
amounting to sz.257.6s7. made good
comparison with that item in March,
April and May. The monthly earnings.
with their indications of gradually inn
proving production. are to be considered
separately from the fact that the corpo-
ration was unable in the third quarter
| of this year to earn its preferred stock
dividend by margin OF more than s600,-
000
The picture of current business in
contrast with what is past, as presented
by the corporation. is the same picture
that other departments Of industry have
been holding up for the last two months
The corporations report appeared late in
the day and had no application to yes
terday's trading in stocks. Nevertheless,
there was seen In the petroleum. leather
automobile and many miscellaneous in
dustrial shares the urge for buying that
had had as its basis the same impression
that exists in respect to the steel trade.
namely, that business, although lame, 10
going forward
The shorts found such scarcity Of
General Asphalt, Mexican Petroleum.
Pierce Arrow preferred, Pressed Steel
Car. United Drug and other issues that
they had to bid them upward 2 to 4
| points in many cases. Central Leather
gained ground in the face Of a deficit OF
| $1.540.000 in the third quarter OF this
year. Traders evidently saw a good sign
In the size Of the deficit. as it was less
than quarter as large as the deficit
In the three months ended with June.
Pai acfp 1Eo bel ho or1r ttv,ux far
positive developments in to-day's Chi
cago meeting. The Pennsylvania Rail-
roads statement for September, the arst
for that month Of any Of the larger sys-
TENS. was good or poor. according to the
angle from which 1t was examined.
When the roads August report ap-
peared, 1t was reasonably certain that
1t could not make In September so salts
| factory a showing in point OF control
/, over operating expenses because In
August. 1920, the company added into
its operating costs a retroactive wage
Increase. which made the decline of its
! payroll decidedly sharp by comparison
In August this year. The company's
| operating outlay In September was
S97S.000 less than it was in August, but
in comparison with that of September,
1920. the decline was s17.S00.0 900 lower
and its net operating income showed a
gain of s547.Sso. The fall OF its gross
revenues was severe. amounting to s1s,-
727.0o0.
The Pennsylvania statement, es-
| pecially In regard to the shrunken traffic
receipts In September, outlines the vital
interest which the carriers have in
/ freight rates as the conference on wages
and rates begins. Roads which are not
earning their interest charges face a
difficult situation in case that rates are
cut further without recompense In lower
! costs.
| Cotton advanced rather sharply and
wheat was firm. The foreign exchanges
! fuctuated through q narrow range, al
though sterling reached new high
point for the season before drawing
back to Mondays closing rate. Call
money was 5ls and per cent
E0pErGN EYCuANrE