Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-03-11
Liquidation of the Rails

ibVuIudtiOIl OI tne Ita1lS
Sontimcntally, the rccurrcut liquida
tlon OF the rails in yesterdays market
was especially dscOnccrting inasmuch
as only month or two ago IL was
popularity supposed these issues could be
successfully employed in bringing about
Il general rcCupcration of the market.
This idea was further strengthened in
the passage of the Winslow bill, for it
was believed the assistance obtained by
the carriers from this source would put
them squarely on their feet again.
Much ado was made yesterday over
the Indications of a country wide re-
vision of wages and salaries. Ii was
generally appreciated the action of the
Pennsylvania management would be
promptly followed by adoption Of similar
policies by the other large systems. The
position of the railroads is nothing new.
1t has been pretty clearly outlined ever
since the turn of the year. Any one
with half an eye long since recognized
the railroads were in a tight box with
traffic steadily falling off on the one
side and with operating expenses con-
tinuing to mount on the other. Reduc-
tion of labor costs from their present
abnormal high level was inevitable and
unavoidable. This not only applies to
the railroads of the country, but to in
dustrial concerns as we'll.
The progressive liquidation Of the
whole rail group was naturally dis
quicting. but it was evident there was
not the strata of speculative weakness
| in this quarter of the market as found
recently in the industrial, mainly be-
cause of the entire absence of pool
| operations.
Oil Fuel Used by Railroads
Railroad operating statistics compiled
bv the American Petroleum Institute
| from Interstate Commerce Commission
reports show that 3.i1l ,02S barrels OF
| fuel oil were consumed by the large
steam roads in the United States lby
locomotives in road transportation
service only) during November. lo2o,
rs against 3,O0J, ,SS1 consumed in that
month. 1919. In October, 1870,
3,Jl5. 800 barrels were consumed; Dc
tobcr, 1919, 2.001 ,641. Consumption
of fuel oil during the eleven months
ending with November, for all regions;
compares as follows: 1910, 80, ,2"''o'-
barrels, and 1919. 2S,So2, ,oo2 barrels.
Selling of United Fruit
There was a good deal of comment
ovnr the renewed efforts yesterday to
bre,L United Fruit Before the opening
stories were circulated about what the
annual report would show disclosing
completc ignorance among the bear
traders as to the affairs of the com
many. The annual report was pnD
| iishcd on January ~ showing H'o
earned on the old stock and ~ n snare
on the doubled capitalization now
traded in. ,. ,,
LAST night there was an urgent Dor
rowing demand for this stock. loans
starting at Il per cent premium ana
n,oving nm to | per cent premium with
tho drmond not filled as the loan market
entered, The idea prevailed that those
who nut out fresh lines of nitrd fru,t
have ulaccd' themselves in vulneraDie
nnsition and may be forced to cover ut
far higher level ..,.,. ot ,o,d;ro
.tncks agreed in the statement that the
narrowing demand last night was un
usually large and this construed pF theu
tn Indicate n substantial increase III tn'
oIrcndy large outstanding short account
Repular Chandler Dividend
wall utrrct apparently made II Yer!
hoI '"mesa on the Chandler Motor Co
J;yidrnd ns the directors upset all tn
rocrnt predictions by declaring th'
rrgulnr quarterly distribution: Con
tending the company had only Smal
actual cash resources, it was argue'
Tint a number of the diYrt"rs were
in favor of suspruding dihd'ndS. TEN,
mornrily. in order to conserve the caSI
resources. !,
rho statement given out after th'
board meeting also punctured ~theS'
arguments to Smithcrccna. lnder th'
signature of the president Of the com
pany, it was stated:
"BtSiucSs for some time past hA
shown II marked Improvement and ship
mcnts at the present time are on
very satisfactory basis and are stcadil!
incrcaSing." The Chandler Motor Co
is in strong cash position, has larg
volume OF business on its books and ha
no indebtedness outside of current aC
counts.
Naturally. there was a hasty retrea
Of some of the more oycrzcalouS sorts
Some of the wiser ones had already GOV
cred. us the action Of the stock tn
last few days indicated some possbilit
of some one having made bad calcula
tiOnS.
THE TRADER.