Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1921-10-24
MARKET AXIOM
AGAIN UPHELD
IN STOCK DEALS
View That It Never Pays to
Sell on Strike News'Is
INDICATED.
SHORTS ARE PUNISHED
Special to Indiana Daily Times
and Philadelphia Public Ledger.
BY MONITOR.


NEW YORK, Oct 24-At the close of
the week, it was difficult to tell how
much of the eIeventh-hour strength de-
veloped by the market was due to its
Iiauidated and oversold condition, and
how much to confident buying for long
account. The ancient axiom that it never
pays to sell on strike news, was once
more indicated, and the shorts in sew
eraI over sold specialties were severely
punished.
It takes something more than short
interest to make bull market, however,
and it would take an unterrifed optimist
to extract much comfort from the devel-
opments of the week. On the surface,
much of the news is discouraging. The
mark has broken to a new low level, al
though doubtless the Importance of the
slump has been exaggerated. The statis-
tics set forth on Great Britain's unem-
ployment situation by Lloyd George in
his speech last Wednesday are almost
appalling, although the palliatives sug-
gested by the premier for remedy seem
to meet with English approval.
STRIKE EFFECT
DIMINISHES.
In view or the magnitude Of its menace,
lively little effect on the market. This is
partly because the threat of a tie-up is
not given full credence, and another rea-
son is the thoroughly grounded belief
that if the question is permitted to come
to final issue, labor domination on our
railroads will be eliminated. Public SEN
timent is not believed to approve the
position of the brotherhoods and affili-
ated unions. The railroad employees have
had wage increases that have trebled the
transportation pay roll since pre-war
days. Compared with these increments,
the wage reduction of Il per cent looks
trivial, particularly in view Of the re-
duced cost of living in the last year.
The railroads have not been earning
a profit. The glittering August showing
was not real gold. On the surface there
was net operating income of 500 200 900.
In this month, however, the railroads ex-
pended only S1S2, 900. coo for the purpose
of maintenance. This was a reduction
of S1J1, 100000. compared with the outlay
for August, 1920. In other words, the
entire net showing represented about
three ifths Of the amount cut from
needed expenditures, that must be made
sooner, or later Such profits" would
be likely to send the transportation sys-
TEN OF the country 10 the JuHh piAe IL
kept NJ indefinitely.
Many we'll Informed persons believe
the strike threat is merely the first move
in the Plum-plan program for Govern
rent ownership.
CONGRESS FAILS TO
ACT On TAXATION.
The most discOura ging feature Of the
situation. although it may not appear on
the surface is the failure Of Congress to
act wisely and cOnstructiyely on the taxa
ton question. A New England Senator
last week, was inclined TO wax humorous
Mt the expense of what he called the Ken
Zap Klan which appears 20 feel that its
mission in life, according to the afore-
said New England Senator, is TO soak
the rich"
The country is experiencing the I'M
favorable reaction from this policy in
striking fashion. Capital we have in
abundance The Federal Reserve state
mont week by week shows a mounting
ratio. Industry, however, is in the po-
sition of Tantalus with money, money all
around ana not Il dollar for business.
Meantime bonds are soaring Money that
should be financing business is going into
bonds. Capital is lending instead of be-
ing n partner in enterprise. This is be-
cause capital refuses TO take the risk at
tendant upon industrial undertakings
and pay the enormous surfaces de-
manded by our short-sighted Legislators.
Copyright. 1921, by Public Ledger
Company.