The Birmingham age-herald., 1924-12-18
MERGER RUMORS
 INSPIRE JUMPS /. IN STOCK PRICES
Both Rail And Industrial Averages Elevated To
 New Highs

NEW YORK, Dec. 17.-with specula- tive imagination fired by reports of forthcoming railroad mergers, involving some of the large eastern and western systems, stock prices today resumed their march to higher ground on an enormous volume of trading, the days sales again aggregating nearly two mil lion shares.
 Both the rail and industrial averages were elevated to a new high levels, the former reaching the highest in seven years and the latter attaining the highest point since 1919, when the post war boom was at its height. Sixty issues, including Is rails, broke through their previous 1924 maximum quotations.
 Chief speculative interest centered in the eastern rail shares. Lehigh Val ley recorded an extreme gain of 71a points at s5, the highest price in 8 years, and then fell back to S2A. Read ing common advanced 3a to 79, the highest price since the segregation of coal properties and then slipped back to TIA. Baltimore and Ohio touched S4A for the first time since 1917 and then yielded to S35s.
 Net gains of one to four points were recorded by New Haven, Lackawanna, Great Northern preferred, Northern Pa- cific. Norfolk and Western, Southern Pacific, Wheeling and Lake Erie, At
  western, Louisville and Nashville, "Soo", Western Maryland second preferred, Western Pacific and a few others.
 American Can was run up to 153A and then slipped back to 151% for a net gain of 1A on the day but the other pivotal industrials showed little change. United States Steel common closed h lower at 1177s and Baldwin was unchanged at 124A.
 Professional bear traders threw large blocks of stocks into the market In an effort to check the advance, but they met with little success. American Woolen and Woolworth, In each of which large short interest Is supposed to exist, were run up to 52s and SIS covering.
 Commercial solvents issues continued their sensational gains, the A, being boosted 12 points, and the B ten, but the A forfeited about half It's gain and the B fell back S1a points from the high. Net gains of two points or more were scattered through the list and included such issues as American Locomotive, American Car and Foundry, Certain teed Products, Goodyear Tire preferred, Mathieson Alkali, Stewart Warner, United States Distributing and Univer- sal Pipe.
 Among the many issues to attain new top prices were Lima Locomotive, American Water Works, Iron Products, International Business Machine, Ma tional Biscuit, United States Industrial Alcohol, American Tobacco A and B and Worthington Pump.
 Call money held steady at 3 per cent all day. Time funds were plentiful at 3A to 3% per cent but lenders were disinclined to make any concessions in rates. Commercial paper rates held firm at 312 to 4 per cent.
 Foreign exchange rates moved irreg- ularly within narrow limits. Demand sterling held fairly steady just above $4.69 but French francs were slightly reactionary being quoted around $5.35h cents. Spanish exchange was weak, dropping about ten points to around 1897 cents. Czechoslavakia exchange developed pronounced strength estab- fishing a new high record for the year at 3.035s cents.
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