The Washington times., 1922-08-22
Agasss assSr EHPs BUSINESS AND FINANCE %Es
Market Comment
copyright. is2a. by Cosmopolitan News
Seryice

Copyright. 1s22. by Cosmopolitan News
service.)
NEW YORK. Aug. 22.--one OF
the heritages OF the war was the
heavy decline in home building in
practically every section of the
country. and this shortage was per-
haps most acute about six months
after the armistice, when our SOL
diers returned in numbers from
the scenes of battle on the other
side. The volume of building in
1916 was only about one half OF
that of the year before and 1918
fell less than one half OF 1915.
The new building during 1921 was
more than three times as much as
in 1916, and from all appearances
this years record will far surpass
that of 1921.
The construction industry is an
important one. not only in consid-
GRAFTON of the important service
which II renders to the people Of
the country, but also because of
the prominent kindred Industries
whose fortunes are directly tied
mp with prosperity in the build
ing trades. First of AL comes
lumber, but the list soon broadens
out to include bricks, cement, heat
ing apparatus, elevators. chemicals,
furnishings, etc. Many OF these
related Industries have been sorely
pressed during the past few years,
but are about to pass into q bright
er period. In not a few cases
their stocks are listed on the stock
exchange, where they have shared
with stocks of other classifications
in the advance from low to high
levels. American Radiator, for ex-
amp.e, has moved up from 50 to 116
since January; Otis Elevator from
116 to $50; Allied Chemical from
So to 70; National Lead from rs to
104. and u. s. Realty from IS to rs.
In an analysis of 211 stocks listed
on the board of the stock exchange,
the Standard Statistics Company
finds that seven groups Of securities
have appreciated in value more than
SO per cent, as compared with thir.
teen months ago. For purposes of
comparison, the rise was studied
from the low figures as Of July ],
1922. to August /. 1922. Largest
gains were made by nine mining,
two theater, five sugar, twelve cop
per, five chemical, seven automobile
and twelve steel stocks in the order
named. The lowest gains Of all
groups during the same period were
is and Is per cent, made by three
paper and eight tobacco stocks. The
percentage Of gain for the market,
as a whole, as indicated by the aver
age advance of 211 stocks, amounted
to 35 per cent.
A feature Of the rise in railroad
stocks in the current movement is
the return to favor of such low
priced rails as Erie, st. Paul, New
Haven. Southern Railway, Rock
Island, etc, which have more than
doubled in price since the first part
of the year. But in the improved
financial status of these roads
there is ample justification for the
advances I'm prices. New Haven,
for example, reported an operating
revenue OF $130,343,2S1 for the
three months ended June 80. against
$2S, S,409.214 the corresponding period
of 1921. Net operating revenue was
$5,S24.757, against s1,501,274, an in
crease of approximately $500, 900.
This gain was in keeping with the
improvement shown during the first
quarter of this year, when net
operating income was $3,573,S5S,
against a deficit the year before of
S3,991 1872. A number of economies
have been put into effect by the
management, including payroll re-
ductions and the substitution of
motor cars on lines little travelled.
These facts. plus a fair-size gain in
revenues, made 1t possible for the
company to reduce to $9S5,525 its
deficit after charges for the second
quarter, as against a deficit of
S4,91S,46S the corresponding period
Of 1921.