Omaha daily bee., 1922-05-30
Financial
Ebe New nork Gimes.
By ALEXANDER DANA MOVES
oman. lice Leased Wire.

p"ahs Zee b~sssd WE
New York, MAY 29.-lnterest TO.
day eenlered largely in the reduction
IN wages OF maintenance Of way en-
Ployes, which was announced by the
railway labor hoard, II can hardly
he said that this further Teadiusl-
ment OF railroad labor was sur
prise 10 the financial community.
When the 10 per cent freight rate
reduction was announced by the inH
iersiate commerce commission few
days ago. the theory was then set
forth that the decision OF the COM
meree commission had. perhaps. been
hurried so that Il might pfeeede
reduction in railroad wages.
AZ all events the downward re.
vision oi wages has not only followed
the freight rate cut quickly but the
two decisions. the one on wages aud
the other on rates coincide as TO
their date OF application, namely
July |, -
Cut Estimated SIS, ,ooo. 900.
n Is estimated that the reduction IN
wages will amount 10 about ts, ,o0n, 600.
and this by no means measures up 10 the
figure that the railroads will lose through
tho application of the 10 per cent fsdue'
tlon IN freight rates, The latter figure has
been estimated at $3.50, AaD, ,enn. II II, how
ever, believed IN many quarters that fur
ther fsyslans Of railroad wages are In
order and that definite announcements
may develop before many weeks.
The real point 81 Significance. however
Il the relationship which new railroad
rates on lower basis and decreased
railroad earnings The reductions In wages
which have now taken place, u applied
20 all railroad employees. would probably
bring the level Of pay close TO that which
prevailed prior TO the general inercass dur
ing the summer Of 1890, when the advance
was some $500, ooc. 900.
This deflstion ~ railroad wages, com.
hned as u u with fcsdjustment OF
freight rates 10 lower levels. will be sd-
vantsgeous to the carriers IL there is any
justification in what appears to be = iogi.
cal belief that lower freight rates will
stimulate business and that earnings VIII
thereby he improved through tn, handling
of larger volume OF traffic. even though
the profit per ton may not be so great.
Stocks stronger.
So far as the stock market was con-
cerned today. tn. wage decision gave pro-
nounced strength not only to III. railroad
shares. but TO the industrisls as well. II
WAS a reflection quite the reverse Of that
tNpectsd Wheh IN" ~ p'r cent ireibht re-
ducton was ordered. Then the market rc-
fused to go down on the news. but this
was mainly for the reason that the COM
pensation wage adjustments were expected.
In view OF the overshadowing importance
OF the wage decision, the market was In
clined to disregard the verdict OF the
United States supreme court against the
Southern Pacific which was ordered TO
dispose Of Central Pacific. Southern Pa
cific issues themselves were affected but
with less important needs to consider, the
market might have construed this decision
as blow to its rather aimlcss discussion
OF mergers with relation to the railroads.
For some time Wall street has been setting
up theoretical combinations and then
knocking them down
On the whole. today's stock market.
both as to rails and industrials. could be
described as buoyant in tone. apparently
suggested by the accumulation OF orders
over the weekend.