Evening star. [volume] (Washington, D.C.) 1854-1972, 1917-12-27
WILD BULGE IN RAILS;
SENSATIONAL OPENING

NEW YORK. December 27.-From
dullness and gloom into activity and
strength the railroads emerged today
I as the result of the proclamation of the
President of the United States in TAX
ing over control for the government
during the war. giving practical guar
anty of continued dividends and interest
on bonds, thereby removing the cause
Of the enormous selling by investors of
late and making them wish they had
held on to their stocks and their bonds
as well.
The shorts were literally caught in
serious trouble and they will have the
chance to write off some serious losses
against their continued success for
nearly a year when they pay their in
come taxes
Once again the leak was absent-con-
spicuously so-and very many traders
were disappointed in that they intended
to get In before the end of the year,
expecting just such results to follow
when the announcement was made
after the holidays. N
1t was the liveliest bull market that
Wall street has seen for months.
years-and was the direct reverse OF
some of the most serious sharp ana
unexpected declines, although drops IN
keeping with the big gains have been
exceptionally rare.
Early gossip reports indicated that
a gain of to 5 points was expected
as many buying commissions had peeh
placed, but few looked for ~ TO 20
point improvements and were the more
astonished at the marvellous showing:
There were others who considered
that an advance in rates, reported as
coming. when the deliberations or the
Interstate Commerce Commission nave
been completed, would be about all that
could be expected.
Started on Tap Of the Bell.
On the tap of the bell Baltimore and
Ohio, the weakling of yesterday. started
the ball rolling with an advance from
39A, yesterdays final, to 55. later NOV
ing up to Sc New York Central rose
from 63h to 70, Northern Pacific made
nine-point gain; Reading. 1873 Union
Pacific, SA: st. Paul, IL Is st. Paul pre-
ferred, IS points: Atlantic Coast Line,
101k; Canadian Pacific. Az; Delaware
and Hudson. S, with a later gain to Ia
points net; Pennsylvania, 10 points, and
Southern Pacific, IA.
Many low-priced rails gained to 4
points net
While there were reactions from the
high, the great bulk of the betterment
was sustained with good buying
throughout the greater part of the ses-
sion
The action of the industrials was
secondary to the rails, for this was a
rail day pure and simple.
Leading Industrials Advance.
United States Steel common opened
at S. gain of 21s points; sold to S6as,
then off to S4a, ard later to "a. still
holding part of its original improve
ment Utah Copper started with an
advance OF 34 points, but lost all but
I1A, holding around 751a; Republic Iron
and Steel held about a point net gain
after a two-point advance; Mercantile
Marine moved up to 81 and dropped
| back to 7s1a, about yesterdays closing
Industrial Alcohol held the greater
part of three-p point advance.
Gains of about a point were scored
on minor industrials.
Sales of the first nour were 400, 900
shares. largely the purchases of scared
shorts, who were thoroughly whipped
by the days developments.
Advance Is Resumed.
The advance was actively resumed in
the afternoon. industrials, war special
ties and shippings showing extreme
gains of 3 to s points.
Standard rails held the greater part
of their rise and minor issues of that
group developed further strength.