The New York herald., 1922-02-01
FINANCIAL NEWS
AND COMMENT
Stocks Have Flat Session-Ey.
changes Move Up-Rail
Earnings Uneven.

Although yesterdays dealings In
stocks were dull and sluggish, the mar
ket was not lacking In interesting price
movements. In fact, as fiat as 1t was.
the stock market contained more life
than was seen In the other markets, not
excluding cotton, which scored a fairly
brisk rally of IA to 32 points. The
foreign exchanges went forward from
Mondays closing level. but sterling did
not attain to Mondays highest quotation
of 4.2S. Probably considerable profit
taking sales were put through in tho
few days, although evidently based on
the improving position OF European fig
ures in international trade. and, there
fore, reflective of basic betterment. has
not convinced spectators that a sus-
tained rise was warranted by known
facts of business. Call money was in
sufficient supply to keep its rate at s
per cent. all day. 1t would not be sur
prising If the rate went slightly lower
before the end of this week. as month
end requirements have played a part In
stiffening quotations since Thursday.
The bright spot in the stock list was
Consolidated Gas. with a net gain of 3al
points, when news came that fits usual
quarterly dividend had been declared.
The fact that the dividend had been
made possible through a special dis
bursement on stock of the New York
Edison Company, all OF which Is owned
by the Consolidated Gas Company.
lightened Wall Streets humor, which
had not been overcheerful, as It showed
that there was more than one way to
stave off deficit when corporation
had reserve forces to call on. The
speculative fraternity had set its face
to meet a postponemeut of dividend
action until the so cent gas question
should be decided by the Supreme Court
Hence the company's ability to solve a
rather unusual situation in an unex-
pected fashion heartened speculative
purchases of other stocks near the end
Of the session.
Dealings in railroad stocks have been
ainlless OF late for the very evident
reason that the market has been unable
to draw deductions from the December
earnings statements, which contain
many year end readjustments. A more
| irregular array has seldom been seen
| Although several prominent properties
| including Delaware. Laclsawanna and
Western and Chicago, Milwaukee and
st. Paul. have reported Indifferent OF
unfavorable net income in contrast to
their showings of December 1920, others
have made excellent ones. Great North
ern was one of the latter yesterday, re-
porting an operating net of s1,255.0 900
more than six times as large as that oi
| December, 1920. and comparable to the
Improvement recorded by the Northern
Pacific on Monday. Evidently those
roads laid a heavy hand on operating
and maintenance costs, as gross revenue
was considerable less than it was a year
earlier The same explanation applied
to the Southern Railway, Michigan
Central and several smaller roads, but
Delaware and Hudson and Chicago and
Northwestern were conspicuous because
of sharp contraction of net revenue.
The United States Steel Corpora
tion's result in the last quarter Of 1921
was about in line with expectations. an
enlargement OF production OF railroad
materials in October helping to make
the net income of S19.612.000 abou,
100000 larger than it was in the third
quarter of last year. The fact that the
December net was nearly 40 per cent.
less than that of October was accounted
for by seasonal slowing down OF bust
ness for inventory taking, but with
December there came also a slackening
Of orders. still being reflected in poor
mill operations. 1t is probable that
operations thus far In 1922 should be
calculated on the basis of those of
December rather than m Ootober's ac-
tivities.