Evening star., 1922-08-24
ACTION IN STOCKS
IS MORE SPECIFIC
Traders Pick Their Favor
ites-Nipper Higher-Rub-
bers and Marines Soft.
BY/sTUART p. WEST.

NEW YORK. August 4.-With the
abandonment of negotiations to
settle the railway shopmen's strike,
following the failure of the anthra-
cite coal conference. Wall street real
the labor situation.
There could no longer be any pre-
tense that the markets were waiting
for news. They knew that the con-
test with the shopmen was to be
fought to a finish. just as they knew
that no end was in sight for the hard
coal strike.
Accordingly, the days happenings
were a complete and a conclusive
test of the part which labor troubles
are playing in financial calculations.
For an hour or SO the share list
moved about with some uncertainty.
A few Of the railway shares dropped
off a point; operations in the in
dustrlals were suspended. waiting
to see what would occur with stocks
Of the carriers.
there was no liquidation of conse-
Quence. even in securities most con-
cerned with the strike, the market
resumed its extraordinary attitude of
indifference toward all that was un-
favorable in the strike news.
AaAc Np 1fOup8s
First chosen set of industrial
shares were taken up in the familiar
fashion, among them the tobaccos.
Studebaker. Crucibie Steel. Vanadium
ana the MeXlcan OILS.
Then to the surprise of all who
nave taken the railway strike seri-
ously as a factor in the market, the
buying movement switched to the
rails
II concentrated more especially up
on Northern Pacific in anticipation
that very soon. quite likely at the
next meeting. the stock will be re-
stored to ! per cent dividend basis
with Northern Pacific rallyins over
3 points from the low of the fore
noon, other dividend paying rails
were drawn along sympathetically.
Shippings Lead Decline.
The speculative faction working for
decline were in the meantime, how
ever. by no means idle Another
sharp drive upon the shipping stocks
was a feature in the early hours. 1t
was getting ready for the cut in
ocean passenger rates. which is now
thought to be inevitable.
In the afternoon heavy selling
broke out in the rubber and tire
sharts Tor trade reasons. which de-
veloped as long as month ago and
are now well understood
At the same time the report that
the new financing of American Tele-
phone and Telegraph would involve
stock issue of over a hundred mil
lion dollars and possibly as high as
hundred and fifty million dollars
brought about sharp selling move
points failed to rufie the general
share list.
Marks and Francs.
The DaDj,, afrppu caryn,p boI1are
OF the mark grew more intense. As
against Wednesdays final of 00675
the quotation fell to .00512. Again
the close sympathy between the
movement OF German exchange" and
French exchange was emphasized
At .o777 where they stood this
morning. francs were below their
previous bottom of the year reached
month and half ago.
Tobacco Products directors at their
meeting today took the action ex-
pected and put the A stock on per
cent basis. This issue. which nigh:
be looked upon as a preferred stock.
Is limited to per cent payments
while the ordinary shares, which are
not yet on dividend basis, are un-
bacco trade, in making their switch
from Retail Stores and the old Tobacco
Products stock. elected TO take their
full allotment in ordinary shares in
stead of half ordinary and half A
stock.
Predict Rate War.
Heavy selling continued in the
stocks of all companies which are
interested in the Atlantic trade
Inasmuch as the last senni-annual
dividend on Mercantile Marine pre-
ferred has only recently been de-
clared. discussion of a possible cut
is. to say the least. quite premature
The trouble does not lie with Mer-
camille Marine in any special man
ner, except as slump in earnings
brought about by passenger rate
war might eventually affect the
dividend policy of the company
Other shipping stocks. such as At
lantic Gulf and American Ship and
Commerce, were almost as weak as
were the Marines in the market to-
day.
Selling Of these stocks is directly
due to the realization that passenger
rates are exorbitant and that with
competition increasing because of the
entry of a number of new liners.
plying between Europe and America
a substantial series of cuts may rea-
sonably be looked for On the other
hand. it Is quite possible that loss
in passenger revenue might be Offset
by increase in freight revenue, if the
export trade has the. revival which