The New York herald., 1922-07-26
FINANCIAL NEWS
AND COMMENT
Governments Plan in Rail
road Emergency Is Basis
for Buying Of Stocks.

Sentiment toward stocks turned d.
rectly about yesterday from Mondays
evidences Of speculative depression and
strong tone of prices before the end
of the first half hour of business became
even stronger near the close. The rails
Joined the advancing industrials. show
Ing pronounced Improvement In gains
of a point and more in Atchison. Balti.
more and Ohio. Great Northern pre-
ferrcd. New York Central and Union
Pacific.
The chief result Of short covering
operations. which seemed to supply the
bulk Of buying, was seen, however. in
automobile. mining. oil and various
manufacturing shares. Some of these
notably Studebaker, Chandler and Mex
lean Petroleum. were carried up to
more than points by hasty repurchases
Of stocks sold the day before
The market laid much store by an
early rumor that before the day ended
some positive action would be taken
under the interstate commerce act to
insure the movement OF freight. The
average trader detests the thought of
Government management of the rail-
roads, but in the present instance WASH
ington assurances that control would not
be aimed at comforted the market and
nourished expectations that ALLEGATION of
cars. priority Of freight transfers, &C..
would help to end the strike. The news
of Government plans. came after the
close OF business. 1t seemed to follow
the lines established two years ago when
a period OF car shortages moved the
Commerce Commission to regulate the
distribution of freight and coal cars.
Not much attention was paid by the
market to Industrial news Of the day.
Central Leather advanced In the face
Of poorer earnings in the second quarter
than IN the first three months of this
year. and an uneven array of railway
reports for June stirred no speculative
reflexes. The Southern Pacific dis
closed an increase Of s1.S00.ooO In op-
Grating net revenue. mainly through
economies in management. The Union
Pacific in the same month had a decline
/ OF $652.000 In net. These results. and
those Of other roads yet to be published.
promise to be of less interest than re-
ports for July, for the yshopmen's strike
and lessened coal traffic cannot help
but have a bearing upon curren. profits.
AS the Steel Corporations report for
the June quarter appeared after the
close of the stock market, 1t came In
for little discussion In the Street The
net earnings of $27,286,945 were about
In line with conservative forecasts, but
100000 or SO behind the more opti-
mistic deductions made on the scale OF
plant operations.
June's net OF $l0,712000 was de-
cidedly satisfactory in vfsw of the gen.
eral fuel, situation In that month, for
1t betokened a rate OF income which
would cover dividends with fair bal
ance over in a full quarter. 1t was SO
per cent. larger than in April The
final deficit of $1,462,345 was only
slightly more than one-fifth the size Of
the shortage in the dividend account
in the March quarter. Thus far, since
the great business readjustment was felt
in the June quarter last year, more than
S25, 600, 900 has been taken from surplus
to pay dividends.
The day was uneventful In bonds and
commodities. Easy money, represented
by per cen cent. call loan rate.
again helped Liberty bonds to new high
points, but others wererdull and steady.
The foreign. exchanges were slightly
lower than On Monday.