The New York herald., 1921-03-16
FINANCIAL NEWS
AND COMMENT
Rail and Industrial Stocks Rise
to Days Best Prices in
Last Hour.

The stock market yesLsEudy boIe Out
fully the promise OF the preceding ses-
sion. when incipient signs Of rally
were discernible. Improvement did not
occur in all departments, however. until
the bears had had another successful
drive at issues which had been the sub
iect OF attack before. Among them We're
Atlantic, Gulf and West Indies. Mexican
Petroleum. American Sugar. American
/ point TO more than 2 points in the
vulnerable group occurred before noon.
but when short sellers sought to cover
their commitments In the afternoon they
offerings. In the Anal two hours OF
business rails and industrials advanced
together. with a few heavy spots here
and there. and the best prices of the day
were reached near the close. Net gains
OF Il point and more In such stalwart
shares as Atchson. American Car and
Foundry, American Locomotive. Crucible
steel. Lehigh Valley. Reading, United
States Rubber and United States Steel
\ presented a more emphatic picture Of
/ the market than any comment could.
Call money remained at 7 per cent. and
the large Government transactions en-
tailed in tax payments, the retirement
OF maturing Treasury Certificates and
the issue OF new series and in Liberty
bond interest payment were put through
without furry in the money market.
1t could not be said that the rise or
stocks was predicated upon the appear
ance OF constructive Developments from
any new quarter. Presumably railway
issues improved because OF sentiment in
some speculative circles which consid
cred a possible settlement Of the wage
question through arbitration. A sugges-
tion OF this came from the meeting OF
railway officials and labor leaders in
Philadelphia but the larger aspects of
this important question precluded, as
before, the likelihood of an agreement
without much debate, recourse to the
Railroad Labor Board and possible
Interpretation OF phases Of the transpor-
tation act by higher officials. The de-
cision Of the New York Central workers
TO 90 before the Labor Board for
judgment on proposed wage cuts was
another addition during the day to the
number of appeals thus made in the last
month. 1t is the natural procedure to
follow, Of course, for the board was
created to handle situation of the sort
which. unhappily has arisen much more
ouddenly than either railroad managers
or workers expected last summer, when
increased freight rates seemed TO make
easy the way for the roads to meet the
wage advances Of July. The 20 to 80 per
cent. increases were voted to provide the
per cent. return upon investment. or
approximately that proportion, upon the
volume Of traffic then moving. But the
traffic was even then in process OF de-
cline. which became accelerated during
the autumn and winter 50 swiftly as 10
make the income accounts OF october.
November, December and later months
rudely shocking to followers OF railway
shares What the security market prays
for is an effective movement to reduce
onerating costs, the chief item being
labor. before deficits become 50 burden
some as to carry great financial hard
shin In their train. The wage problem
needs quick solution, just as the crises
~ transportation brought about by war
traffic required strong, instant and wise
measures to head off even more profound
difficulties.
The foreign political situation was az
T,r away from the financial district yes
terday as before Sterling gained a cent
TO s3.s9M, and most of the Continental
quotations advanced, but all that ap-
peared to show was a relationship oe-
tween the speculative activities Of both
stocks and the exchanges.
The hrmness of cottos evidently mad
slight relation to February consumption
figures. which showed a decline OF 70 per
cent. in lint cotton manufacturing from
the result in the same month OF last
year. Wheat was firm.