Evening star., 1922-08-15
RAILS IN SHARP
PRICE REcOvER|ES
Quick Rallies Gave Impress
sion of Shorts COVERING
Trades.
BY 8. p. WEST.

BY 8. p. WEST.
NEW YORK. August 15.-wail
street had left OF Monday feeling
more dubious over the railway strike
than at any time SO far
! The news this morning brought
about a sudden change in sentiment
! and 1t took barely an hour for the
| STOCK market to undo the entire ef-
fects Of the previous days selling.
/ In this first forward sweep railway
shares rose a point to three points,
the Industrial and public utilities
groups rallied almost as swiftly and
! the familiar operations for a rise in
numerous specialties were resumed.
Outlook More Favorable.
| The Interpretation placed upon
/ overnight developments was that the
| extension Of the sympathetic walk
out on the part of members of the
four big brotherhoods had been a
good deal exaggerated, that in reality
the brotherhood heads were very
| keen about another conference with
the railway executives. and that IL
TINS could not be arranged collec-
| lively their policy was to bargain
panies which are willing to waive
| the seniority question and take back
the striking shopmen.
Favor the Bright Side.
In these developments the market
Of the day saw the strike crisis on the
wane.
Once more it was evident that the
] speculative community wished to look
at things on the brightest side pos
| sible. This is characteristic Of a mar
ket in strong hands.
| Whether sentiment would have been
| SO sanguine had the public and not
wealthy individuals and pools been
Is question. But there was no doubt
| that prices were quicker to respond
| to the more favorable news of the
morning than they had been to the
| discouraging incidents of the previous
day.
The definite ending of the London
conference was followed by another
| drop in continental exchange, in the
] course of which German marks sold
at a new low of .O095, and French
francs got down to their low figures
of a week ago.
This decline had occurred before
| the New York opening. 1t was due
entirely to selling originating on the
other side. Later in the day there
was sharp rally. in the course OF
| which francs rose well across the
Scent level. Undoubtedly. this was
the accustomed reaction of a specula-
tive market after bad news" long
foreseen had finally broken.
That the inability of the French and
English governments to compromise
their difficulties means a rupture in
the entente seems an altogether over
hasty inference to draw. Had there
been any serious idea of such a result
in the markets Of the day. AS it was.
neither sterling exchange nor the Sc
curity dealings, either obroad or at
home, were in the least affected. even
while continental rates were weakest
Turn to Industrials.
After the first hour the buying
movement in the railway list sub
sided. Attention was absorbed for a
time by various industTials moving
| for special reconsideration Pa
per. the chemical stocks, the linseed
oils. United States Realty. American
Wool. the tobaccos, Pittsburgh Coal
and electric storage battery. Most of
these upturns were short-lived. but
they accomplished their purpose of
keeping up interest on the buying
side as the side that still represented
the line of least resistance.
The Money Comes Back.
Seven public utility companies that
Finance Corporation during the pc
; riod of depression. have squared their
accounts, indicating returnipg pros
perity.
Interborough Rapid Transit paid
er, Railway and Light, S4.s00.000;
| back 1851 500; Commonwealth Pow
United Railways Of st. Louis, $3,222.-
! 600; New Orleans Railway and Light.
$4,000, 900 Columbia Railway Power and
Light. $642 Central Power of st.
| Louis. $4,000: Appalachian Power
Company, s1,000.000.
There ave sorne nublic uttlit;a, that
have repaid small part of their bor-
| rowings and others that have repaid
not a dollar.
Fortunately. Washington public
! utilities did not have to go to the
! War Finance Corporation for assist
ance before, during or after the war.
hence they have no obligations to
; liquidate,
! At all times the local market has
| been able to absorb any financing the
i of local utilities was never better
/ than today.
Hudson Motors Earnings.
Washington investors are quite
prominently in Hudson Motors, hence
the republication from this mornings
! Wall Street Journal of the following:
Hudson Motor Car Company, with
which is included Essex Motors, is
| returning the greatest profits in its
history.
For seven months ended June 40.
net after charges and taxes was
| S3,041.774, of which June accounted
for $1,264,071. July earnings bet
tered June and indications are that
August will surpass July. On this
basis net profits for first nine months
of fiscal year will approach $4,000, 900.
At least 100000 should be earned
in last quarter. making twelve months
total about $7,000.000. or $6 a share.
This is three times present annual
dividend requirements of 81 a share.
This revelation of earning power
| is more notable in view of the fact
that in 1919. the best previous year,
combined earnings of Hudson and
Essex were less than $2,350.000, or
i about 50 share on basis of present
! capitalization.
/ "Oficials see no signs of slackening
demand Aggregate output of Hud-
! son and Essex cars Is averaging well
! over 500 a day. For first ten days
! in August actual shipments were
i larger than for any previous ten
| day period.
Goal and rail strike situation are
! causing officials no grave concern.
Coal and rail strike situation Is
i ample Ray material and acces-
sorry stocks are satisfactory. and 1t
| is not believed operations will have
\ - ho c,,rf q lied from lack of SuDnlieS