The New York herald., 1922-03-07
FINANCIAL NEWS
AND COMMENT
Supreme Court Decision In Gas
Case Stimulates Stocks to
Sharp Recovery.

The stock market found. yesterday in
the Supreme Courts decision holding the
80 cent gas law confiscatory in New
York exactly what was needed TO stimu-
late tagging speculative spirits. Prior
to receipt of the news from Washington
Industrial shares had been inclined to 60
lower, many Of them rather sharply, and
tho railroad list had been pretty nearly
lifeless. The recessionary movement was
continuation of events Of Friday and
Saturday. when pool interests had been
put to It to find reasons for carrying
their favorites further, and their inde-
increase efforts to force reaction. AS
yesterday mornings decline had brought
widely scattered losses OF large fractions
to moro than 2 points. the brisk recovery
OF the later hours was not sufficient to
leave the list higher all around than It
was at the week end. Consolidated Gas
and Brooklyn Union Gas quite natur-
ally SCARED to levels Of 7k and IL points
above Saturdays last quotations. and
several other public utility, electric,
sugar and speciality issues left off at l
point to points UP. The list generally
was irregular at the end of the day. with
fractional gains predominating.
The gas decision was deemed of much
Importance from two major angles. In
the first place. the highest courts action
disclosed an appreciation of the fact
that economic changes make inevitable
alteration of statutory rulings from time
to time, condition which State and city
politicians are pleased to ignore. Tho
suggestion contained in the decision for
the New York Public Service Commits
sion and to lesser degree for similar
But for public utility companies gener-
ally the precedent set by the Supreme
Courts attitude in the gas case comes
rather late, and not until those which
sought in vain during the war years and
later to have the relation between costs
and receipts readjusted through rate in
creases have seen their positions i'm
proved by normal reaction in the costs
of materials and labor. Reference to
surplus accounts and passed dividends
bears witness to what might have been
IL full recognition of economic facts had
been enjoyed by municipal authorities in
recent years.
The second aspect of the decision.
which the market grasped Immediately,
dealt with the strengthened gas company
treasures as its result. Some $4,000
600 impounded receipts will be returned
to the Consolidated Gas Company. and
lesser totals. footing up into the millions,
will go back to other concerns. The i'm
mediate rise of the shares was undoubt-
edly response to that outlook as much
as 1t was to broader phases of the ruling.
Foreign exchanges continued to fluc-
tuate broadly. first receding extensively
and later recovering slowly. Sterling
went from 4.40A down to 3.39k and
ended a shade under 40. French
francs lost points in the first hour
and were not much higher when trading
ceased, which was the experience Of Bel
gian francs and lire. Marks held fairly
steady. The market developed no new
phases.
Grain prices recovered briskly in the
afternoon, seemingly trailing along with
stocks. Wheat ended rs to Ia cents q
bushel higher than 1t was on Saturday.
Cotton advanced II to &c points.
A rise of nearly points in Consoi-
dated Gas rs featured the bond market
and most issues were firm.
Call money went from AZ per cent to
per cent.