Evening star. [volume] (Washington, D.C.) 1854-1972, 1922-09-07
BY J. c. ROYLE.
Special Correspondent of The Star.
,Conrrirht 1927

NEW YORK. September THE i'm
mediate effect on general business
from any adjustment Of the rail
strike, which today seems nearer than
at any time since July l. in view OF
news of the past twelve hours. Will De
more psychological than actual for some
weeks after it takes place. The i'm
mediate improvement to business con-
ditions. however. will be none the less
<important, for that fact. for the strain
of the strike itself has been psyche
logical rather than actual in most in
dustries and in most sections.
The shopmen's strike tie-up has not
been complete. Shipments have been
hampered and delayed. but not en-
tirely suspended. Farmers. producers.
manufacturers and merchants nave
suffered loss. but they have suffered
far greater loss from uncertainty as
TO the future than from the actuai
progress of the strike.
Ready for Leap Forward.
Business in every section is ready
freed from that drag. as soon as II mas
definite assurance that transportation
conditions surely will get better ana
not worse. This view was expressed
in telegraphic dispatches from oank-
ers, business men and manufacturers
in widely separated sections of the
country, received today following the
announcement that the policy COM
nittee of the shopmen had been cameo
TO consider new proposals Tor settie-
ment.
Motive power and rolling stock ex-
perts pointed out today that the re-
pair of train equipment and locomo.
tives is not a matter of hours, but OF
days The repair shops have not
ceased operations. In fact, the ran
road executives here declared 1odas
that their shop forces were increasing
constantly. The increase in the supply
of good order cars and locomotives
will be gradual even after the strikers
return to their lathes and forges.
But the knowledge that the OLD
trained men are back at work, that
AFFILIATED labor organizations are help
ing rather than hinderinS operations
is sure to speed up car loadings and
train movements. More than all IT
will relieve the uncertainty OF other
lines of commercial endeavor. Pro-
ducers of raw material will increase
instead of diminish output. Manu-
facturers, feeling sure supplies will
not be cut off, will cease to hesitate
in acceptance of orders. Merchants
will continue the interrupted stocking
of their shelves and prices in all lines
will approach Sterilization.
Expansion of Business Foreseen.
Although delay in shipments will
not be relieved at once business men
will tide over the immediate period
of car shortage and expand their
programs for the remainder of the
year rather than abandon them. The
strike has cost certain sections the
loss of millions. actually as well as
potentially. but much of this loss
might be regained before the end of
the year If an immediate settlement
removed uncertainty.
The building industry, which has
been one of the greatest sustaining
example of the situation produced by
the strike and the effects of a settle
ment. Construction has fallen off
nearly II per cent since the end OF
July. according to accurate reports
made public today. This has been
uncertainty as to supply. The open
ing of the fall renting season showed
. plainly that housing needs have not
yet been filed. Plans involving the
expenditure of nearly s1.25o.ooo. 900
through the country in the next four
months have been drawn. If a strike
settlement is assured in the near flu
ture constructions will continue with
those plans tiding over the shortage
of materials and delaying actual
building until it is relieved.
Possible Effect Of Uncertainty.
II the uncertainty continued long,
however. large part of this pro-
gram will be definitely abandoned for
this year.
Shippers throughout the country,
especially in the west and south, de-
clare that a decided shortage Of cars
is sure to continue until well into
December. even if the strike is ad-
1uSted In the near future
Merchants coal men and manufac-
turers in the eastern section expect
corresponding psychological effect on
business to follow the formal con-
frmation OF the agreement ending
the anthracite strike