The New York herald., 1921-05-19
FINANCIAL NEWS
AND COMMENT
Stocks Recede Partially After
SrOng Bulge-Allied Ex-
changes Improve.

Railroad stocks did all that could be
expected OF them yesterday in the for
ward urge which came from the United
States Railroad Labor Boards an
nouucement that wages of common rail-
road labor would be reduced on July /,
but that news was dulled in specula-
tive sense by aSprocession of dividend
reductions and elminations. Profess
sional traders took advantage of the
vigorous initial advance of l point TO
more than 2 points among the rails to
attack steel and other manufacturing
rail stocks drew back from their best
quotations. With the exception of the
railway wage item the market was again
concerned with matters affecting partic-
ular corporations or particular indus
tries. Making due allowance for the
fact that the market following had been
expecting unfavorable action by direc-
tors OF several companies this week,
there were inevitable relexes from the
passing of the Republic Iron and Steel
common. the Cambrai Steel and the Pa
cific Mail Steamship Company dividends
and the halving Of the dividend of the
Cuban-American Sugar Companys COM
mon stock Buying was cautious
throughout the session after the market
settled down from the first upward swing
steel. automobile and petroleum issues
at the close indicated that the short
seller had been active. Call money re-
mained firmly at per cent.
The railroad labor decision was con-
structive in its broad application, but
naturally the financial community would
have preferred to learn at once definite
terms of wage cuts. The board pre-
sumably was moved by its general sur
vey of evidence supplied by the roads
and labor representatives to let the pub
lie know labor costs we're too high in
contrast with the tendency of COM
modify prices and decided to establish
the amount of reductions VIXEN all con-
tentions were in. Several railroads and
their employees are to be heard by the
common labor begins to receive re-
duced wage in six weeks, there will be
judgments rendered by the board in re-
spect to basic scales of skilled workers.
But the carriers, presumably, are more
concerned at the moment with the ex-
tent of prospective cuts than with the
full scope OF them and information is
rot to como forth for nearly two weeks.
The steel trade has become recon-
ciled to a dull summer. which has been
reflected in the stock market for sev-
eral days, together with dividend reduc-
tions. The Iron Age notes. however,
that the United States Steel Corpora
tion's order this month have shown an
increase OF 80 per cent. compoared with
the average Of March and April. evil
IDENTIFY product of the recent price re-
action. But March and April were de-
cidedly poor months for all concernss.
and the statement that steel works are
running at 80 to 50 per cent. of capacity
presents a clearer picture Of actual con-
ditions than does reference to increased
orders from a low level. The railroads
are buying rails in very small volume
and keeping equipment purchases as low
as possible and the Withholding of
normal amount Of that tonnage from
steel mills is being felt severely.
Dispatches overnight that Germany
was ready TO pay s37.000,oo0 of the
$3.50. 100000 reparations instalment due
at the end Of the month was of cheer
ing influence TO the allied exchanges
yesterday Sterling hovered around the
S4 level and francs gained about II
points TO S.60L. German exchange, on
the other hand, receded, movement
that was to be expected through news
that transfers Of funds from Berlin and
other Continental centres to London and
Paris for Germa account were being
made.