Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1921-10-20
HEAVY SELLING IN STEEL;
MARKET TURNS SOFT
Wall Street Believes Presi-
dent Will Force Freight
Rate Cut.
SUGAR AT NEW Low RECORD
stock Goes Lower ms Federal Com.
phny Slnshes Product to 3 .2U-stceI
Producers and Consumers Undix-
turbed.
By IL L.. lsaPnuni.

by IL l.. lsaPnuni.
NEW YORK. Oct. l9.-With the
market ovcrsold and with railroad
presidents backing down on their
proposition to make another cut I'm
wages of railway employees before an
nounclnB substantial cuts In freight
rates. railway shares opened higher
this morning. Later in tho day. how
ever. heavy selling occurred I'm the
steel sharcs and the market as
whole turned soft
1t Is now plain that President
Harding is standing firmly behind the
public group OF the Railroad Labor
Board and that the railroad managers
are preparing TO follow the sugses-
ton OF that group by making a sub
stantlal cut In rates. II the railway
executives had been wise enough to
follow this their original plan the
railroad labor leaders would not
have had a leg on which to stand IN
protesting against the proposed fur
Their cut OF 10 per cent in wages.
Cut In Rates In Coming.
However. 1t Is now plain that cut
in freight rates Is coming, that the
strike order IL to BIO withdrawn, that
the plan OF tho managers to cut wages
10 per cont Immediately 10 TO be with
drawn. This plan promises an i'm
mediate reduction In tho cost OF liv-
Of goncrnl trade, reduction In I'M
employment. an Increase In tho de-
mand for investment and speculative
Bceurities.
American Sugar made another new
low record for all time today. selling
nj noon at ~ 5-s. According to Wall
Street gossip, the directors have no
intention of passing the per cent
preferred dividend at the meeting to
1,n al frnnn Il
plain that this old company is going
through hard times.
Federal Sugar. which Is leading the
price warfare in the sugar trao., cut
rcfned sugar today from $40 TO $50.
There was decrease OF 5.5as In
the number OF loaded freight cars
during the week ending October Z.
tho American railway figures show
ing sob.TAO cars loaded. Tho peak SO
far this year was the so1,o7s on Oc-
tubcr l.
Steel Interests UndIxturbcd.
Today.s Iron Age says both pro-
ducers and consumers OF steel do not
seen disturbed over the prospects
OF n strike. The market In this in
dustry was reported being ruieter
but with operations still favorable.
the mills In the Pittsburgh district
running at 40 per cent OF capacity
with one large Chicago company run
ming at A per cent.
Wall Street was greatly Interested
in today.s London cables reporting
Lloyd 2corgea government remedies
for unemployment. Aftor frankly
admitting that England Is In the
grip OF tho worst unemployment sit
ua,ion OF tho century" owing to de-
rangcment OF trade and fluctuations
OF exchange caused by tho war. tho
government proposes TO revive Tor
In
some cases i've and six years and BY
guaranteeing interest on f35.60o.0oO OF
now capital invested in public utility
enterprises. a sum OF Elo.Oo0.O00
will also he set aside for forestry de-
vciopmcnts.
Steel shares wero weak on learn
ing that Republic. after tho close OF
business. was going to give out Its
September earnings statement.
a reduction announced today o.
from 10 to 20 per cent In ocean
freigh, rates and in some cases TO 30
per cent on shipments of goods TO
Continental Europe. brings the level
down close to the pre%ar basis. How
ever. tho cost OF operation Is still
far above the 1913 level, indicating
that there VIII be another cut in
shipping wages.
Cut In Hardware Prices.
4 cut In all hardware prices to 4
prcwar lcvol plus the difference due
TO increased cost of manufacture and
transportation IN recommended by the
executive committee OF the National
Hardware Association in convention
at Atlantic City. The proposed re-
vision covers every Item I'm store and
building hardware In anticipation OF
building boom In the spring.
Wall Street ia still talking about
the disclosure OF tho very high sal
aries paid by the New York Federal
Reserve Bank TO officials, which. in
some cases. amounted to an Increase
within a very few years OF from ST.
500 a year TO $4,000. 1t IL UNDER
stood the list as just published does
not tell the whole story as increases
have been made since the figures
wero complied.
Tho point is being made that after
insisting upon dchation in the gem
eral banking and business world, II
Is up to the Federal reserve hank to
set an example by debating it's own
high pay roll. Bankers know that
salaries OF $4,000. $4,000, $4,000
100000. $4,000 and 100000 are not
paid to officials who do not take the
initiative and assume large respon-
sibilities. but merely attend TO rou-
tino organization work.
1t is being pointed out that the
Federal reserve bank is n govern
ment institution. that dividends are
limited to per cent with only a
specified percentage of earnings GO
ing TO surplus tho balance OF profits
to go TO the United States Treasury
instead of paying excessive salaries
--&-
RICHMOND STOCK MARKET