Evening star., 1922-08-12
|NDUSTR|ALS ARE
MARKET LEADERS
Rails Reflect Fear of Strike
Spreading-Steels Are
FavorabIe-Notes.
RY STUART p. WEST.

NEW YORK, August 12.--Over-
night developments in the railway
strike-the expansion OF the Train
mems walkout in the west, the de-
cisiye reply of the rail executives
to the Harding proposal for arbitra-
tion, and the report that the shop
men would refuse the administrators
program altogether-brought some
selling into the railway list today.
but had no effect upon the general
market. While railway shares were
dropping off a half point to point.
the better part of the industrial list
moved ahead. and so did the recent
leaders in the public utility group.
Exchange Firmer.
The encouraging word from LONDON
that after all the conference OF pre-
miers was likely to accomplish den-
mite results toward solving european an
problems, was promptly reflected In
the exchanges.
French francs got back nearly all
of the loss sustained during the early
part of the week when financial SEN
timent was pesSimistic on the SUD
ject. Other continental rates Joined
in the recovery. even German marks
raking part despite the further huge
Initiation amounting to 9.0O0.0OO,OOO
marks shown in the latest statements
of German note circulation
Industrials Strong.
The strength of industrial stocks
. was a more significant feature than
was the moderate decline in the rails.
These induStrialS nearly all repre-
scented manufacturing and distfibutive
companies which would be severely
hit if the transportation industry of
the country were really crippled for
eny length of time. That there should
have been no selling in this part of
tine market. but the contrary active
buying i'll numerous directions, made
clear enough the financial COM
,nunitys feeling about the railway
strike.
StecIs to the Fore.
In preparation for the formal an
pouncement of the completion of the
1ackawanna-B Bethlehem steel merger
these stocks We're actively bought and
rose sharply. U. S. Steel common
went along, but in its case the pros
pective settlement of the coal strike
was the incentive.
Sears -Roebuck, Wilson & Company
and Advance Rumley were prominent
features of the group of stocks that
have recently been rejecting the i'm
provement in the agricultural outlook
Columbia Gas and North American
among the gas stocks, again made
new high records.
And the strength in these quarters
brought about active short covering
in the motors as in others, where
there had been an attempt earlier in
the week to force down prices.
Lackawanna Steel.
Lackawanna Steel and the Bethle-
hem Steel shares were the leaders In
the industrial section of the market
today. The buying was believed to
be from banking sources closely iden-
tilted with the properties and was in
anticipation of the pending merger
which was held up during investiga.
tion by the authorities at Washing.
ton, but which has now been ap-
proved 1t was said that statements
declaring the confirmation Of tho
merger have been prepared to be mail
ed soon/to shareholders.
The continued advance of American
Radiator into new high ground re-
fleets the benefits derived by the
company from the building boom
Sales are reported away ahead OF
those for the same period last year
An extra dividend is contemplated, 1t
is said. Directors in the past have
paid many extra dividends in add3-
{ tion to the regular 81 payments on
the stock American Radiators par
value is $25.