The New York herald., 1922-06-01
FINANCIAL NEWS
AND COMMENT
Decline of Reading and South
ern Pacific Checks Rail
Stock Market.

| The stock market had its fill of rail-
much to digest at once in the Reading
and Southern Pacific Central Pacific de-
cisions by the Supreme Court and the
rail shares executed decidedly diversi-
look for many of the rails was. at the
same time. clouded by a degree of un-
certainty over the relation of rate cuts
already ordered and expected wage re-
ductions yet to be made. The market
seemed to pass by rather lightly the
threat of disapproval by labor unions,
for the impression prevails that dis
agreements over statistics about living
costs and the buying power of wages
will not influence workers who see in
expanding railroad traffic the oppor-
tunity for steady employment after the
lean year of 1921. AS the market on
Monday did not know of the Reading
ruling making the preferred and COM
mon stocks share equally in the divi-
sion of assets incident to the segrega-
tion of properties the full brunt OF
sales by disappointed traders fell on
the junior issue yesterday, carrying the
price down SIS points. At the same
time the first and second preferred is
sues advanced 2a and ~ points re-
spectively. making the intuitional pur-
chases of last week, if they may so be
called. highly profitable to persons who
bought 6 to points under yesterdays
quotations. Southern Pacific receded
nearly points. The depression of those
leaders quite naturally threw the rail
market into confusion for a time. but it
cd mainly to fractions.
While the rails were the more inter-
esting, because Of momentous events af-
fecting them, industrial issues were in
larger demand. Petroleum shares were
bid up rapidly in the morning and also
sugar stocks, aided by a stiffening OF
raw and refined sugar prices. and sew
eral specialties went to new high points
for the year. 1t was noticeable, however,
that most of the more prominent manu-
featuring company stocks were sluggish
1t will be recalled that last week, follow
ing the freight rate ruling, many of them
were buoyant, affected by the prospect
for increased business under lowered car
rying charges for goods and materials.
Trade surveys now suggest that prior to
July /, when the rate cut goes into
there ha ell
of business. the movement of goods be-
Ing held back to benefit from the re-
duction. and that possibility may have
affected speculation in stocks.
The latest figures on freight trans
portation, however, show that business
retained its earlier momentum we'll into
April, car loadings In the week Of April
20, amounting to 792,459, being 15,1O0
more than in the preceding week and
2l,46S in excess of the same week of
last year Not only did loadings of gem
eral merchandise exceed those of the
preceding week by S,303 cars, but ran
Ss.337 ahead of last year and 49,629
over the movement in the same week OF
1920.
The steel trade continues to move
ahead. output for the inlustry as a
whole being maintained above 20 per
cent. of capacity, according to the Iron
Age. The furnaces and mill are having
no more trouble in getting fuel than ip
earlier weeks of the strike, and prac-
tically the only department in which
buying has slackened this month is
structural steel. Buying in April was
decidedly heavy.
CAN money advanced from per cent.
10 per cent. yesterday, presumably
rejecting end of the month necessities
Inc foreign exchange hardly moved,
waiting Tor further news about the
proposed German loan