Evening star., 1921-10-21
RAILS ARE SOFT;
|NDUSTR|A[S HOLD
Action IN Oils and Utilities
Shows Confidence-Steels
Are Slow.
ny STUART p. WEST.

BY STUART p. WEST.
NEW YORK. October 21.-Prices
moved with much more irregularity
on the stock market today than they
had yesterday or the day before. Not
as many issues displayed strength.
and there were more points of weak
ness. Yet, despite these declines in
the market properly could be describ-
ed as consistently steady, recording
no lessening of the quiet confidence
underlying the surface which has been
Characteristic Of the market for the
last month or more.
This confid ance, however, applies
rather to the industrial list than to
the rails. The position of railway in
vestments will not at all be clear un-
til 1t is known whether the roads will be
allowed to operate under conditions
at least as favorable as those since
July l.
If they are compelled to stand a
further lowering of freight rates and
have to bow to pressure against en-
forcing the supplementary 10 per cent
wage decrease. then the outlook for
all but the strongest companies Will
be dubious.
1t was the fear that the railroads
would have to accept this mode Of set
Element. rather than any disa ppointment
over the failure Of yesterdays confer
ence at Chicago. which was back Of the
selling in railway issues today. This
selling was no: as heavy as that at the
close. Of last week, following the is
suance Of the strike Ocder. but it was
sufficient to bring about losses of point
or MOI, In some of the group. while
causing special weakness in the Eries
and ore or two other of the low-priced
.ssueS.
BuyfnG Back Steels.
\ good deal of the buying in Re-
public Steel came from sources close
to the inside apt to know the present
earnings position. This fact gives the
lead. in all probability, to what is
going on in shares Of the independent
companies generally. Insiders are re-
placing lines sold out at higher prices,
not with the idea of any immediate
advance, but simply on the knowledge
that the third quarter marked the
veIy bottom of the depression and
that earnings from now on will be
better The best opinion is that the
results for the fourth quarter will be
a decided Improvement over those for
the three months ending September
30. but that il will not be until next
spring that the steel business gets
back to normal.
Department store stocks.
May Department Stores went up
rapidly on the statement printed yes
terday that the dividend was likely
to be restored to the full $40 basis.
The stock is now paying S.. The
company's business has undergone de-
cided Improvement and for the pres
ent year it will show something like
sea a share earned. The rise in May
brought increased activity into Asso-
ciated Drygoods. at advancing prices:
This company has been doing good
business, but the lower prices at
which this hase been taken have some
what reduced the total revenue. 1t
has been unofficially stated that
profits were running at about IS per
cent of what they were year ago.
This would make the 81 dividend on
DrygoodS common secure.
Big Four.
Cleveland, Cincinnati. Chicago and
St Louis (Big Four} shares were
again in demand today. Their
strength in face of the uncertain
fluctuations in the rest of the railway
list pointed to some special explana-
tion. This explanation is rather
difficult to find in the earnings of the
company. which. although fair. are
nothing wonderful. But it does ap-
pear that the recent buying has come
from the same people who We're in
Nickel Plate common when it had it's
eral railway market.
Rail shares Soft.
Railway stocks were inclined to
sell off, ostensibly because the Chi
cago meeting yesterday had failed to
accomplish anything toward the set
tlement of the strike. This however.
was only a superficial explanation.
The main point was that the possible
ity of the Labor Boards being able to
do something with the union repre-
as an excuse to bid the rails up
against the short interest. With these
shorts out Of the way the market po-
Sition was weakened. and began to
are felt lest the authorities at Wash
ington force an adjustment which will
diminish the earning, power of the
roads. Canadian PaciHc. although not
directly affected by the problems con-
fronting the American lines, went
down rather easily.
Exchange Easier.
Industrials in the main gave a
good account of themselves. While
not advancing any further, the oils
were persistently bought. and SO
were the steels. A variety of special
May Department Stores, Associated
Drygoods. American Ice, Burns Bros.
Coal. American Express and Famous
Players. In most of these the motive
behind the DuylnS was 1aNOraDie
earnings position. But there also
was the thought that strictly do
meStic companies-that is. those
which have no concern with the for
eiyp demand and the state of the
export trade-are better fixed than
those which are not wholly de-
pendent upon the home market. Con-
sequently the stocks of such com
panies are free from uncertainty re-
garding the future course of things
abroad and their effect upon the ex-
port movement.
The recovery in German marks from
their low of .O052 to yesterdays close
of .O06S was dependent upon the buy
ing in Of contracts for the decline. as
became apparent today. Another rush
of selling at the European centers
was followed by fresh selling here
The result was a swift decline, which
carried rates down again below che
.0060 level. The break In German ex-
change had a moderate effect upon
sterling and francs.