Evening star., 1921-10-15
RAILS WERE UNpE4
SEVERE jPR|E$sjA
Shares Off About Poir
Gulf Steel and Pierce
Arrow Firm. -
by STUART r. WEST.

NEW YORK, October 15.-wI
street devoted most Of its attenti|
| today to the railway situation. Sci
ing OF the railway shares continu4
Their decline did not, however, hal
the effect IT did yesterday upon 9TH
parts of the list. Industrial sharl
| with few exceptions. were steady. al
there were numerous advances, esp,
cially in the oil and motor groups
The appearance Of the plan
which the railway heads throw doJ
their gauntlet by making a rate Il
ductfon dependent upon furth|
| lowering of wages did rot change u
situation as it appears in the view
the investment community.
There may be strike, anyway, b
fore the companies are able to e|
force the award of last July.
A strike would, however, be abs
lutely certain were the men told TIL
they must accept another 10 per Gel
cut. But it is very doubtful Nheth
the crisis would be allowed to d
velop that far. If the Labor Boa
adopted the 10 per cent reduction,
appears altogether dubious. II
more unlikely still that the author
ties al Washington would yield tn.
consent
Consequently the fear remains
very real one that the raiiw1
dilemma will not be solved exec
through some sort of compromise
which the carriers will have TO r
linquish through rate reduction son
of the advantange they gained by Il
decrease in the wage scale thr,
months ago.
Great Northern preferred al
among the rails, evidently because Il
maintenance OF their full dividen,
is sufficiently uncertain as II is.
The st. Paul, Reading, PenRsylvan
and Western Pacific were others tn
were noticeably under pressure.
Oils Open Firm.
Oil stocks were higher at the sta
falling away later. yet, nevertheIe.
holding their ground fairly we'll.
Active short covering in Pierce-A
row issues, accompanying reports
business improvement. l. ad syn
pathetic effect upon the other motor
German marks had another ba
break, getting well below the 7-mil
| level.
At the same time sterling, still fee
ing the reduced movement of stapl
with the consequent lessened supp
OF commercial bills, was very stron
| Rates were back to the highest poi
since last spring. and to within lit
more than 10 cents of Il e top of {
year. reached before the German i
demnity operations began to exerci
their depressing influence.
Pressing on Rails.
Selling orders had accumulated
fore the opening this morning :
through the railway list. They car
mostly from out of town and repr
sented the speculative followil
, which had not been informed Of ye
teTday's weakness and of the threa
ened strike, who were doing ihe
! belated liquidation. The greate
, amount of weakness appeared in I
stocks of roads which have unde
/ gone the least improvement from {
/ II per cent wage reduction OF Jul
The theory was that they We're {
ones which had most at stake in {
outcome, which now seems We
doubtful. of the effort of the exec
tives to drive a bargain by which
rate reduction is contingent upon
further 10 per cent cut in wal
scales.
st. Paul and New Haven.
The share OF roads which are 81
failing to cover fixed charges ha
their main sinking spells yesterd.i
but they were weak again this nofl
ing. Great Northern preferred W.
driven down because 1t is none u
sure of its per cent dividends und
present conditions and certain
would not at all be sure of them
rates were to he lowered without
full compensation through low
wages. Western Pacific made ne
, low when it broke through 20l
This stock has been acting badly f
some time because of unsatisfa ctol
, earnings.
American Wool
1t was reported this morning In
4 subsidiary of the American Nool'
Company was in the market fer son
fresh funds which were to be used ;
working capital. This borrowin
which is being arra nged at the bank
was said not to mean that the cor
,, pany was in actual need of u
! S3,000.600 to s4.000,U00 wanted, b
that it simply wished to be on Il
safe side in order to take care of y
creased business