Evening star., 1921-06-01
ACTION N|NST0CKS,
NOT VERY LIVELY
Prices Generally Shaded,
With Some Recoveries.
SteeIs Weak Early.
BY STUART r. WEST.

NEW YORK, June 1.-Publication,
Of the decision of the Labor Board
on the reduction in railway wages
other on the markets today. The award
of an average IL per cent cut was a
compromise between the minimum
and maximum estimates by which the
financial community has been gov
erned for the last week or more. Be-
ing neither better nor worse than
looked for, it's influence was negative
so far as immediate operations were
there Is no doubt about this down.
ward revision in the railway pay rolls
being altogether satisfactory for the
great majority of roads. The pros
pect, of $500. 100000 being saved from
operating expenses is something of
Importance which can be better un-
derstood in the light of the remark
able economies already disclosed in the
traffic statements for April.
Railway stocks opened with a good
deal of uncertainty at the start, but
later on developed rather more
strength.
In the industrial list professional
operators renewed their experime ents
on the short side during the first
hour or SO. But they wers unable to
speak of. and this was the signal for
short covering to set in, under which
prices slowly hardened. Motor stocks
appeared to have pretty we'll adjust
ed themselves to the price-cutting
announcements. more Of which oc-
CURED this morning.
Sosth Porto Rico Passes.
Passing Of the dividend on South
Porto Rico Sugar failed TO induce
~ ha he
and this was a matter of some sig
nificance. Steels and oils were not
as sensitive as they had been yes
tefday to unfavorable trade condi-e
tions. They.were weak at the begin
ming. but bore a fair share in the
subsequent rally.
Explains Drop In Exchange.
With the completion of the German
reparations payment all the foreign
exchanges rallied sharply. All doubt
that the demand for American dollars
in connection with this operation was
the major cause OF last weeks break
was removed by the disclosure that
$35, ,000, 900 credit for the benefit of
England and France. with the federal
reserve bank at New York.
This made sure, what had been sus-
pected, that it was the conversion of
German balances into American dol
larv as the medium selected. for max
Ing the reparations settlement which
broke up the recent overspeculation
In sterling and francs and brought
the evident reaction. :
Predicting a Chanse.S
That the market. is in the midst
OF turning. movement . was the
opinion expressed in several OF the
big houses this morning: The idea
was that this movement would be
bv hof tot
groups had already turned, while
others perhaps might not have yet
completed their downward swing.
Il was felt that motor stocks had
pretty well discounted the price cut
ting in their industry, as well as un-
favorable dividend action. although
In the case OF Chandler there was
some doubt as to how outside hold
ers would taxing thescntting Of the
dividend scheduled for the meeting
on June s. sE
AS is usual when stocks are being
accumulated, the market, it was an,
ticipated, would be made to look
unattractive.
The impression would Be given that
there was little chance OF making
lie would be further ihtimidated by
recurring weakness In individual
stocks. While keeping of an outside
following, inside accumulation would,
it was thought: go on. preparing the
way for considerably better market
toward the end of the summer.
The fertilizer business, taking the
country as a whole, is about 60 per
cent AZ largo as it was last year, ac-
cording to the head of one of the
larger fertilizer companies. The fall
ing or has been due partly to the
cold weather, but more to the fact
that the farmers have been in no
position to buy. Prices are generally
below replacement value, according to
this expert, and manufacturers are
carrying over large stock. of mate
rials in most sections. 1t is expected
that demand for ingredients will be
rather slow for next fall and spring
goods have been sold at large loss.