The New York herald., 1922-07-31
FINANCIAL NEWS
AND COMMENT
Pinch of Inadequate Coal Pro-
duction Felt for First Time
in Week Just Ended.
FEARS FOR THE FUTURE
PrOlongation of Strike Would
Hurt Business but Settle
ment Seems Near.
FEARS FOR THE FUTURE


The coal and railroad strikes reached
last week the stage where the public be-
gan to pay serious attention to the price
demanded from industry by these con-
tests between employers and employees.
For nearly seventeen weeks of slackened
coal production and a month of ham,
pered traffic conditions business went
along, trusting that every day would
see change. This could be done for
the reason that. while anthracite mines
were practically closed down and less
than 80 per cent Of the bituminous
mines were working. there was no heavy
demand for hard coal and enough soft
GOAL was coming along to Keep the
mills working pretty we'll.
Once the pinch Of inadequate coal
production began to be felt in some I'm
dustrial districts. and the situation
threatened to be aggravated by irregu-
lar rail deliveries. the public's voice
was heard in no uncertain fashion. But
the demonstration Of public need IN edi-
torial comment and in the Interstate
Commerce Commissions installation of
priority freight shipments. was less In
dicative Of d present situation than OF
fears for the future. The most recent
records Of Industrial results certainly
displayed no widespread hardship from
either the coal strike or the railroad
strike.
Business Increased in June.
As a matter Of fact the plain sugges.
tion from June railroad reports was
that general business proceeded In that
mcnth under a greater head of steam
than it did In May or in April, despite
the fact that the interruption Of fuI
coal supplies had long been In effect
Coming nearer down to date. the rail-
loads car loadings in the week of July
Is not only comprised 142, 1000 more thar
the week before but In respect to mer,
caiandise freight, omitting coal, the ag
in the history Of American railroadine
the figures showing that more goods
were put on cars in that week than ir
any other except in tire giant traffic
period Of October and September, 1920
certainly spoke volumes for the impetu!
under which business was travelling vi
to the middle of this month.
Most of the railroads, with the ex
ception of lines whose traffic normally
has a high percentage Of anthracite
have reported Increased gross earningi
.h June as compared with May. Th,
New York Central. a completely repre-
sentative road, had sS,oo0.Ooo more gros,
receipts than In May. and net ineom,
was SO per cent. and more in excess o.
the May total The Atchson. Southern
Pacific, Union Pacific, Southern Railwa,
and others not only did good business
iu June but they did an EXCEPTIONAL,
good business. The Rock Island hat
| enc Of It's best months in ten years. TIL.
Norfolk and Western. thanks to sof
| coal traffic from non-union mines. hat
the biggest gross return that 1t eve,
reported.
| u. S. Steel Earnings Improve.
These facts and figures are wei
worth considering when the strike out
look seems depressing In the indus
trial field the United States Steel Cor
poration with net earnings Of more thai
$1o.0o0.000 in June, against something
over $s.000.00o in April, suggested tina
something beside moderate price ad
vances for certain products had been in
fluential in expanding income. The cor
capacity throughout the month. and
while there Is no safe way of forecast
ing what went on In the second half o
July, the steady enlargement OF unfille'
orders throughout the spring and sum
mer months indicated that consumer
were pressing for q place ON the con
tract books.
From all the data thus far receives
| industry had not been greatly handi
capped UP to last week. A continuation
Of the strikes certainly would do lot o
damage sooner or later. but there !
excellent ground, for hope that they vii
be settled soon.
The point Of especial Importance ha
not to do with the past results Of th
strikes, nor with the present situation
but with the many Indications that busi
ness is merely affected BY an artificia
and temporary drawback. The under
currents are pushing strongly agains
the barriers of the strikes.
New High Prices for Rails.
The stock market of the week re
Elected in its sensitive fashion the re
curing waves Of cheer and depressio
over strike developments. IL was noted
however, that the periods of decln
were less emphatic than the interval
of recovery. The average price of rail
road shares reached the highest poin
since July. 1919, and at times, whe
PARTICULAR industrials were drawin
back under stress of selling peculiar Z
Individual cases, the rails were sturdil
maintained by purchases for the future
The rails quite naturally could not es
cape speculative realizing sales. bu
they were at no time submerged b