Evening star., 1922-07-28
MARKET ACTIVE,
WITH RA|LSLEAD|NC
Stocks of Companies Affect.
ed by Strikes Settle
ment Firmest.
BY STUART p. WEST.

NEW YORK. July 2s.-The stock
market decided. from close evamina-
| tion Of today's news, that confidence
| In an improving outlook for the
strikes was not misplaced. The di-
rect response to this impression was
very strong tone in the railroad
shares, which carried the average of
rail stock prices to the highest point
In three years. At the same time a
good demand for railroads equipment
and most of the steel stocks reflected
growing belief that both the rail
and coal troubles would be in a fair
way of settlement before many days
had passed
Speculative buying OF the rails had
all the vim of Thursdays closing
operations at the opening and for
| some time afterward. Baltimore and
Ohio. New York Central, Chesapeake
and Ohio. and others Of the we'll
paced dividend payers were not long
I'm advancing from a point to more
tnan two points. American Locomo-
tive went to new high record, above
llS, as did American Car and Foun-
dry, with gain of ~ points to 10.
Steel Acted Slowly.
United States Steel proved to be
somewhat sluggish after a firm start,
but the rather Indifferent action of
that stock was off set by strength in
Republic and Bethlehem. The early
gains, added to the previous days up
turn OF point to more than 6 points,
quite naturally induced heavy profit
taxing. and this contributed to a de-
gree OF irregularity around the mid
die OF the day. Studebaker stood out
as an exception. to the general trend
by receding. and under pressure suf-
ncient to suggest that great deal OF
pool stock was coming on the market.
Strike Situation.
Strike events as reported. seemed to
show that important decisions were
able on Thursday. 1t was realized
that President Harding had made a
powerful plea to both sides in the
rail- controversy. the proof being the
meeting Of railroad executives called
for next Tuesday in New York
The best information obtainable
showed that the President had CEN
| tered his plea on two points-the re-
turn of the shopmen to work pend
ing rehearing of their case by the
sirability of reconsideration by the
roads OF their attitude toward the
seniority of striking workers.
But from what the public knows
about the strike a favorable decision
on either of these provisions would
pave the way to agreement on other
disputed factors. AS to the coal
strike. the market believed that the
conciliatory spirit of operators and
workers in central competitive fields
encouragement lay in the full prob
ability that this pressure would grow
more Intense.
Money Plentiful
Some striking changes in the Fed
eral Reserve Bank statements this
week displayed more clearly than
previous reports the very easy posi-
increased its cash reserve by more
than $12.000.0e0 coincident with the
fall of $6.000.000 in circulating notes
and a drop of no less than $4,000. 900
in deposits. The product OF these
changes was seen in a rise of "a per
most extensive gains for any week
of this year. The New York bank
drew heavily on other institutions.
chiefly through t37,0o0.00O increase
in its credit with the gold settlement
fund: At the same time rediscounts
receded $63.000.000. carrying deposits
down 32,400.O00. The showing fore
cast continued easy money in New
York. The call loan renewal rate
was again 31z per cent.
i wall street Cheerful.
Wall street expressed its cheerful
ness regarding the strike outlook by
bidding up prices on the stock ex-
change. The stocks of companies
most vitality affected by the settle
ment Of the coal and rail strike were
Of course the ones which came in for
the most attention. These were the
rails, the Goals, the steels and the
equipments. Practically all of the
rail stocks moved ahead rather sharp
". while Crucible was the leader of
high ground foS the year, and Baldwin
high ground for the year and Baldwin
showed the way for the equipments.
Burns Brothers was the medium of
expression in the strictly coal stocks.
CocOa-C0la.
Estimates of Cocoa-Cola earnings in
the first half year put them at the
rate of about $12 for the full year
with at least three extremely good
months yet to come. This estimate is
made after preferred dividends and
the allowance of $425,000 for taxes, 1t
is reported that the company has sold
one million gallons of sirup so far
this month.
Blair G. Co. announce closing of
books on issue Of $5,000,000 Otis Steel
first mortgage twenty-five-year 7k
per cent sinking fund gold bonds.