Evening star., 1922-07-22
BY STUART p. WEST.

Special Correspondence Of The Star.
NEW YORK, July 22.-The security
markets indicated plainly during all
of this week that they were concerned
primarily with basic things having
to do with industry, credit and trans
portation, making only casual refiec-
tion of temporary conditions Thus'
proof that the steel trade had made
important strides forward in the
June quarter was Of much more sig
nificance than the closing down of
blast furnaces here and there because
of lack of fuel.
Also stock values were very little
depressed because the railroad strike
had slowed the movement of raw ma
terials and finished products.
The market looked beyond the trou-
bles Of the moment.
Strikes end some time, and 1t was
not illogical to reason that when in
dustrial peace again ruled business
would feel the impulse supplied by
several weeks or even months OF dis
organized production.
Industry Little Damaged.
This is not to say. of course. that
any real benefit can come to anybody
through such bitter contests between
r.
in some respects, that the coal strike.
with the vast loss OF production which
1t brought. occurred at period when
industry vas just beginning to rise
from prolonged prostration. Because
Of accumulated stocks and the steady
output Of non-union mines INDUSTRY
has come through to date with very
little damage.
While reports from rail union lead
ers and railway employers have been
much in conflict, the everyday expe-
rience of the public has showed slight
inconvenience and delay in the move
ment of passengers and goods on the
railroads. Congestion has been severe
at junction points. especially In west.
ern territory, and the number OF
trains has been cut In some local1-
ties, but commerce has not been han
dicapped severely.
Confidence in Business.
The steadiness of stocks probably
waN grounded during the week in
knowledge that the country was by
no means approaching paralyzed
state through the strikes. That con-
dition supplemented a real belief in
the sound substructure of.business. it
enabled holders of steel, petroleum,
coal, automobile and railroad shares
declines as occurred were chiefly the
product of proflt-taking sales.
Small Profits, But Significant.
one of the most interesting of this
year, and several developments were
worthy of comment.
Steel company reports rather ex-
ceeded preliminary estimates Of re-
suits in the second quarter. The stock
pointed IL the Republic Iron and Steel
Company had disclosed a slight deficit,
for even with operations throughout
the industry as whole running dur
ing the period at between so and IS
per cent of capacity. economic caution
been sufficiently under control to per-
nit any money to be made. The COM
pany. however, had a profit. 1t was
small in itself-only $86.300-but
large in Its significance. The actual
year. which. by the way, did not meas
ure the full depths of depression of
1921, was nearly $970,000.
The report made by the Gulf States
Steel Company was also comforting,
for net income at the annual rate OF
more than IS share. Is not to be
basis of these statements and the
published record of its orders. sta
tisticians calculate that the United
States Steel Corporation should dis
play around $30,000,000~ net when its
statement Is issued Tuesday. In the
March quarter, when $6,749.000 of its
dividends had to be supplied from
surplus, the corporation had a net
return Of $19.33s.000.
Cuts In OIL Prices.
The petroleum Industry disclosed the
fruits of intensive drilling operations.
which had expanded 30 rapidly fol-
lowing last winters upturn of prices,
as to produce more oil than the re-
fneries could use and put into stor-
age. The two general cuts Of 25 cents
a barrel naturally carried down with
them the wholesale quotations of GER
tain refined products.
These movements would appear to