New-York tribune., 1921-05-19
Prices Easier
I'm Irregular
Stock Market
Rails Are Stronger ON De-
cision of Labor Board,
but the Factors Making
for Decline Gain Control

With the public Of relatively little
influence on the present fluctuations in
the stock market, which is temporarily
dominated by professional traders, the
reactions 30 news developments are
more subtle than in periods of large
outside participation. Ordinarily one
would expect the announcement by the
Railroad Labor Board of it's opinion
that the wages of common labor would
have to be reduced--implying as it
does, possibly way out of the
present unsatisfactory financial con-
dition of the roads-would be received
at the stock market with hilarious Joy.
1t is true that railroad stocks opened
yesterday with marked gains, and that,
although the upward movement soon
| fiattened out, net increases were made
for the day by most Of the rails. How
ever, the impulses for the rise, which
were not sustained all through the
session, even among the rails, were
not strong enough to Offset factors
making for decline among many of
the industrials. Thus the market fiuc-
Suations presented no uniform picture,
but rather a spotty, irregular tone.
The average of twenty rails spurted
from 63.95 to CATS, but that of thirty
industrials declined from 76.77 to 1850.
In the developments Of the day in
the industrial field there was much to
remind spectators of business reces-
sion and to cool their enthusiasm. Five
companies during the day changed their
dividend policies lowering the return
to shareholders. Republic Steel omitted
its dividend, but the action was not
made public until the market closed,
and the stock closed unchanged. Cam
bria Steel and Pacific Mail also passed
dividends, and the New York Air Brake
Company and Cuban-American Sugar
reduced theirs. Moreover, the fact that
the automotive industry had not yet
attained price equilibrium was revealed
by cuts announced by two more COM
panies-Maxwell and bort. Although
this price cutting tends to make buyers
hold off and has temporary depress-
ing influence on the industry, it is
Fundamentally favorable. Observers
within the industry recognized months
ago that further defation was neces-
sary and that the industry would not
revive fully until prices had been re-
duced. An approach to the inevitable
may be regarded as constructive over
the long run.
AS far as railroad development was
concerned, it's effect on the market was
restricted too because it had been ex-
pected. Consciousness that favor
able dictum was likely to come from
the board at Chicago restrained traders
from depressing railroad stocks last
week when the industrials reacted
sharply.
Although the press dispatches indi-
Gated no solution yet Of the Silesian
issue, the European exchanges re-
msined firm, indicating no fear among
strong. 1t is believed that France will
shortly. Moreover, the French Treas
ury, which had been selling francs
heavily to obtain dollars, is at present
virtually out Of the market, removing
much selling pressure.
Southern selling depressed cotton
prices. slightly, but grain quotations
moved upward. Talk of crop damage
unless there is much rainfall accom-
panied speculative purchases for the
rise, and net price gains varied be-
| tween "a to 3 cents net higher.