Evening star., 1922-09-01
ER|ES ARE UNDER
SEVERE PRESSURE
General Market Shows
Strength-Exchange
Is Firmer. \
BY STUART p. WEST.

BY STUART p. WEST.
NEW YORK, September 1.-The
financial markets received news of
the compromise In the German repa-
rations case as a better solution of
the matter than was looked for in
the pessimistic atmosphere of a week
ago.
Belgium. having priority on all
cash payments for 1922. agrees to
waive the gold requirement. pro-
acceptable guarantee. ~ In effect @ t. this
amounts to the recognition of Ger
man inability for the remainder of
the year to pay in gold. and although
not actually, is virtually a moratorium.
which she has been seeking.
Strain Relaxed.
The reparations problem is mob
disposed of by any means, but the
immediate strain Is relaxed. No real
Improvement in German finances can
anced and stop put upon paper
note imitation.
But sufficient relief was afforded
by the commissions decision to check
the pressure upon German and French
exchanges and bring about a substan-
municipal securities participated in
the recovery of the franc.
Not 4 Factor.
ket has al no time been seriously per-
turbed over the weakness in the con-
tinental exchanges, 1t could scarcely
have been said that Improvement in
the foreign situation was much Of a
factor today.
Still. it did bring in some fresh buy
ing from the other side and this
forces making for higher prices.
Erie Stock Break.
A severe break in Erie securities
market Everybody was demanding
whether there was anything radi-
cally wrong. The answer was that
there was nothing wrong.
The Alton receivership had simply
drawn attention to the so-called
cially to those hit hard by the ccal
strike. like the Erie has been. Erie
earned its fixed charges during the
first six months of the year. II may
be able to cover the losses of July and
August in the remaining four months.
II the coal trafic reaches the huge
dimensions expected. The break in
planned bear raid.
Burns Brothers.
Burns Brothers stocks continued to
discount the settlement of the an
thracite strike. The principal opera
tions this time, however, were in the
A rather than In the B shares. 1t is
felt that the two have been selling
out of proportion. A price Of 50 for
the as a prospective per cent
stock does not appear too high. But
with the B on a 4 per cent basis, the
A would be distributing IL per cent
and Is considerably out of line with
other industrials with like dividends
and earning power.
Consolidated Gas.
Consolidated Gas opened down 4
points on the announcement that the
rate on New York city gas had been
cut by the public service commission
10 cents per thousand cubic feet.
The stock was readily taken, how
ever, at the lower level and sub
stantially rallied. 1t was believed the
company would recover the loss by
the saving.
Otherwise Favorable Day.
. 1t was q day Of expanding activity
on the stock exchange, Of good trad
ing in bonds and in the main of ad-
vancing prices in both markets.
especially among the low-grade rail-
way issues.
Erie bonds and stocks broke badly
for a time and there was active sell.
ing of the Seaboard Air Line and the
stocks OF one or two others of the So
called weaker roads.
Apparently. however, this was
merely an experiment on the part of
professional operators to see how far
confidence could be shaken in this
class of stocks as an aftermath Of
the Chicago and Alton collapse
Neither In Erie nor in any other
instance did the weakness have .anN
vital significance. But it did draw
attention to the fact that the coal
erike has In some instances made the
difference between barely covering
end not covering interest charges.
Dividend Payers Firm.
Dtyidend-payfng rails were not ruff
neo In the least by the driving down
OF these lesser members Of the group.
Chicago and Northw estern made q
new high record on the anaiysis of
the latest earnings statement indicat-
ing that the road Is earning well In
excess Of the full per cent, which
the common stock used to pay and
suggesting the return to this old rate
in the not distant future.
The complaint of the Federal Trade
Commission against the Republic
Midvale-Inland merger had little ef-
fect upon the stocks concerned ex-
cept to keep them dull.
Having the backing Of the Attorney
General. the promoters of this mer-
ger will go ahead with their plans
and take their chances on m appeal
to the courts after the commissions
0nal decision.