The evening world., 1922-05-23
WALLST. GOSSIP.
BY r. r. Bntson.

Inele was COHtiuudtlOn OF nCdNN
buying in the stock market this
morning which resulted in' new
high average Of prices for 1921 in
the case OF both the industrials and
the rails. But before the END of the
first hour the forward movement
was halted by circulation OF the re-
port that the reduction IN freight
rates, about 70 be announced by the
Interstate Commerce Commission
will avergae at least 40 per cent.
The particularly disturbing feature OF
the report from the Wall Street
point Of view was that the com
mission had decided TO reduce class
rates and rates on merchandise in
less than carloads as we'll as rates
on basic commodities usch as steel,
grain, lumber &c.
1t has been expected all along that
rates on basic commodities would be
reduced 10 per cent. and that class
rates would remain undisturbed
Inasmuch as the so-called basic |,
commodities make up more than 7b
per cent. Of the railroad traffic Of
the country, it was rather dtfiicult to
follow the argument advanced to-
day that an average reduction Of 10
pet cent in all rates would be a |
more bearlsh market factor than the
financial district has all along ex-
pected.
However, speculative enthusiasm was
chilled, temporarily at least, and
during the remaining four hours of
trading the rails and leaders. in the |
oils, motors, steels and other in
dustrials were hardly able to main
tain early advances.
If any feature Of trading were to be
singled out Erie common would |
have to be named. II was not only |
the strongest stock on the list, but
the most active as well.
No one seems to know just what has
rejuyenated Erie markctwise. Up
until the beginning OF this week a |
days normal business in the stock
was from ], 900 to / 200 shares. Yes
terday upward of 10000 shares were
dealt in. In the first four hours of |
business to-day more than $4,000
shares were traded in compared
with only 1000 shares of United |
States Steel. 1t rose to is S-4 for
n net gain of nearly 4 points dur
ing the last two days. Last Janu-
ary 1t sold at 7.
Strength OF Erie inevitably led to cir
culation Of the rumor that the COM
pany Is to be taken over by another
large system, and that the matter
has been put up to the Interstate
Commerce Commission for approval.
Bankers who know most about
Erie's AFFAIRS stated that they had
no knowledge Of any such deal
pending.
II had been nearly everywhere expect |
ed that directors Of Coca-Col Com.
pany at their meeting held to-day
would place the stock on a per
cent. basis. But the regular per
cent. rate was declared. On the
other hand there was considerable
doubt regarding an increase in the
dividend of Computing, Tabulating
q Recording. Yet directors OF the
latter company increased the an
nual rate from 4 to 6 per cent.
Although plans for merging five of
the larger independent tseel COM
panies have been all but completely
abandoned, stocks of companies
most directly concerned in the pro-
posed merger were among the
strongest of the steel group. In
early trading Republic rose more
than two points to new high for
the year, but later reacted with the
rest of the market.
| One of the many false reports put in
circulation for the ostensible pur
pose of attracting a public market
| following was that the Standard Oil
Company of Indiana had acquired
| control of the Sinclair Consolidated
| Oil Corporation. The report was
| characterized as a pure fabrication
| by Harry Sinclair, head of the lat
| ter company.
The report of the Union Pacific sys-
tenn FOR April, one of the first i'm
portant railroad statements to be
issued for that month was decidedly
poor. II showed a decrease In traf-
fic receipts Of s1,4ai,0 900, while net
earnings amounted TO only s1,01T,.
900, "a decrease of s1,eo6,0OO COM
pared with April of last year.
lone copper trade authority estimated
sales of the metal In May at 260,-
900, 900 pounds. These would be
the largest monthly sales since
1920. The price OF copper was ad-
vanced to 10 rs cents a pound, but
copper shares were comparatively
dull throughout the market session.
1.-The wheat market was active and
strong. May wheat advanced more
than cents a bushel, and July
gained 21S cents. Cotton was quiet
and slightly lower. The renewal
rate for call money was 4 per cent.
There was an abundance OF time
money at the same figure.