The Washington herald., 1922-05-25
LIST UNAFFECTED =
BY PERcENcU1a ]
IN FREIGHT RATES
Rails Firm Throughout
Day, With Industrials !,
Generally Higher.

NEW YORK. May 24.-Announce-
ment by the Interstate Commerce
Commission this morning Of a 10
per cent reduction in freight rate
came as something Of q surprfN
to the financial district. A cut
rates had been considered an eventp :
ality. but the actual event came sooD- o.
er than most persons had anticipaS
ed. Very little effect was distiS-
gui5hable. however. in security prices. :
Rails opened firm and held 80 dur -.
ing the rest OF the day. while ip~ /.
dustrisls were generally higher az the
market closed. Trading was somee
what less active. sales approximatinss -
100000 shares.
Taken altogether. the markets be-
havior was consistent with it's per-
formsnces during the last several
days and reflected a waiting attitude
rather than diEmsy over the intro~ol
duction Of any disturbing influence.
Such a state OF affairs is natural.
since the reduction in rates was. IN
general, expected. and since IL isl
furthermoree. desirable-provided al
ways that corresponding reductionF
are 10 be made in labor costs. "a
Decision Passes Unkeede1.
The market gave little heed during
the morning hours to the action Of
the Interstate Commerce Commission
in announcing a substantial redues
ton in freight rates effective July /. q
There was some selling Of the rails
during the first hour. but IL was wen
absorbed and in general prices in this
group did not fall below the previous -
days close.
without having seen the full text
of the Interstate Commerce Commis-'
'pn's opinion, the more cautious ele-
nlent in the Street was inclined 10
reserve judgment as to effect Of the
commissions action on the value OF
railroada securities. The decision was
somewhat Of a surprise TO the finan-
cisl community. in spite of the fact
that something OF the sort has been.
rumored for several weeks. II had
been generally accepted. however. that
the meeting of the railroad heads
with the President on Saturday last
and the appointment Of a committee ,
to study the rate situation would,
have the effect Of postponing action
for the present at least.
Those who did make preliminsr
estimates. from the scsnty data avail-
able in the preliminary announcement
OF the commissions action. as to the
effect of the rate cut on the other
earnings Of some OF the less pros
porous Eastern roads. found them
selves confronted with impossible re-
suits unless the effect OF the reduc-
tion will be a very remarkable stim--
ulation in traffic and this increased
traffic can be moved at a cost sub
stsntially less than that ENLISTED by
any OF this group OF carriers during
the current year On the other hand.
IL was generally admitted that tho
stronger roads could well afford so
make the reduction prescribed. In :
general. the first impression made or
those in the Street who have fol-
lowed railroad earnings closely duI-
ing the past few months. seemed "a -
be that the effect OF the rate cgl
would probably be TO widen the dis ,
tinction between the sheep and the
goats.
Copper.
Sales OF copper metal at IL cents
a pound were reported today. thus
bearing out the predictions made last
week that that price would be a.
tanned within 4 short time. In some
quarters talk OF a copper shortage
is beginning TO be heard. based o.
the Improvement I'm consumption. the
SNCduN EuH Ol tAOChs anu AllF aah-A
that few Of the companies which have
leopened their mines during the pas
few weeks can begin producing in
quantities SUFFICIENT to make this
source Of supply a market factor 70
several months.
Cheering reports concerning tha
start of the conference OF banker
at Paris to consider the possibilt,
Of a German reparations loan wers
reflected in firmness in the principa
European exchange rates. The ca
/ bles suggest that the Germans ara
coming to the meeting with a res
desire to pu. their financial hous'
/ in order and that the French under
stand the necessity for compromise
/ Even though the difficulties in IN
way of a loan are real and consid
cradle, the conference has begun i
| a promising atmosphere. Frenol
francs responded TO the better feel
ing with a Az point rally to sos
! cents and both Belgian francs and
Italian lire moved forward msterisb-
! ly. German marks held firm at O.34
4 of cent, and the pound sterling
was steady at S4.44%. Dutch guildens
achieved a new high for the yea
at 3S.SS cents Trading was brisk