The New York herald., 1921-03-11
FINANCIAL NEWS
AND COMMENT
Rail Stocks Continue TO De-
cline as Street Considers
New Wage Problem.


ket prices carried over into yesterdays
business FOR rho reason that the In
fuences behind Wednesdays reaction OF
railroad shares still maintained IN fact.
they were aanpliaed by realization that,
Wills the broad movemsnt among the
railroads for lower wages was construc-
tive for the longer future, events of I'M
mediate Importance were likely to be de-
pressing. Unless the PENNSYLVANIA. New
York Central and other lines can come
20 an agreement with representatives OF
labor unions the controversy wf1l go be-
fore the Railroad Labor Board under
the transportation net OF 1920. Further
mora news ehai Senator CuInnins, whose
part !n shaping tho last railroad fesisia-
tion was important. had announced the
purpose OF asking for Congressional IN
Vestigation or tho whole railway situa-
tion promised complications whose re-
suit could not be determined. IN sum
mary. tho financial community saw IN de-
voiopmcnts surrounding tho labor prob
lem factors which might easily delay
che cutting down OF costs. matter
which holdars o. railway stociss believe
( 10 decidedly serious IN the present period
OF unfavcrsbie earnings.
The railroad stocks were offered down
throughout the day. new low records Tor
tho year being recorded in such issues
"a Chicago Milwaukee and St. Paul
common and preferred. Pennsylvania.
Reading. Rock leland. New Haven.
Northern Paciac. Southern Pacific and
New York Central. The fall of point
70 mOrs Than points carried some OF
them 20 levels close TO those reached in
ths break % last December. Specula-
i've short sales were credited with most
r. ths pressure, but there were signs.
TOO. % q greats< outflow Of real rquida-
ton than had been seen before this
month In this connection II Is possible
that something quite apart from eenti-
days sales Pror 20 tbs income and
eycess profits tax date IN December. IL
VIII be RECALLED. = great deal OF stock
YES sold aor ths purpose of raising
cash. OBVIOUSLY lie resources or a great
many individuals and corporate tax
payers are no more liquid now than three
months ago. ana conversion OF securities
into tax money has been going on for
several DAYS IL naturally would be
fastened ~ a weakened undertcns OF
prices. The recession of Liberty bonds
this week has had the earmarlss or such
sales
Il was more than anyone could expect
th1t Industrial stocks would show resist
ancc when ihc rails we're melting down.
steel common vent to 7sss. 4 new low
price for 1870. erd there we're fev among
the active ie-ues wnica closed without
losscs - poiut ~ more, TIE relation
stp between Industrial anl railway
+ prosperity i too evident 10 need de-
sor1Tion tie manufacturing company
shares were able 70 command high prices
when the railroads oerc acting indiNer-
entity during the war and aftervard. But
TIE period ~ Government control CLOSED
over inequalities of tho connection be-
tween tie two which are coming nov
vvidly - light TIE steel trade assets
that without lower railway rates lts ac-
tiyitiea must be curtailsd rcrforce. and
the argument might be reversed 10 the
eject that without normal traffic to and
from steel works the railroads cannot
be expected 10 DO their best.
4 Presumably the monthly report OF
Steel Corporation bookings had con-
siderable to do with the decline or the
stock, although a shrinkage OF more than
5000 tons during February had been
expected. Tho forward contracts de-
clined s39,-97 tons. the aggregate At tho
end OF the month being 6.93s,s67 tons,
the smallest total since October. 1919.
Nevertheless the order books contain
volume os orders before tho war and
they would be satisfactory now we're y
not Cor ;he fact that buyers with a mli
position are reluctant 70 order their
goods made up and shipped. That is dis
closed by the contraction OF operations
from more than 50 10 about s. per cent
of capacity In ak weeks. Bu, a fall
- $4,000 tons - orders n : month
hardly shows traces of wholesale cancel
'atiorE which Nigh, he expected Il vIcW
of current rero-ts of dscidedi, stagnant
buying
The fofaiEn exchanges oo-e Inusd II
riso. ser linz at t,o sss 1riec vf thr
day being back where % vss before trc
allied forces entered Germans. Political
matters abroad sfe n slight cFess .
tho markets.
FOREIGN EXCHANGE.