Evening star., 1924-12-31
SPECTACULAR RISE
IN MANY STOCKS
Year Closes With Violent Ad-
vance in Several Pivotal
Issues.
BY STUART p. WEST.
snscisl Disnatcb TO The Star

Special Dlspatch TO Inc Sthr
NEW YORK. December 31.-The
two outstanding features on the Stock
Exchange today were the big rise IN
General Electric accompanied by eX-
traordinary outside trading in the
shares of the new Electric Bond and
Share Company when issued, and, sec
cond, the active selling and buying
for cash" which was going on IN con-
nection with the establishing or the
tax losses at the close of the year
General Electric had closed Tues
day night at 297. Right at the start
today it sold at 80. Then. in the
later trading. it went considerably
higher still. The reason for. the re-
markable turnabout was that wall
Street had not realized what the dis
tribution Of General Electric inter-
ests in it's public utilities would mean
for holders of the parent company
stock. On the old basis of 250,0O0
shares of Electric bond and share
common, all owned by General Eiec-
trio, the earnings figured out $40.
On the new basis of 1850, 600 shares
the earnings nominally appeared TO
be only $5.25, which were pretty low
for a stock that was pushed up
violently far above par.
Holds Valuable Properties.
But the secret lay in the immensely
valuable equities of the various prop
critics in which the Electric Bond and
Share Co. owns more than hait' IN
terest Among these are American Gas
and Electric. the common stock OF which
sells around 1877; Lehigh Power selling
around us: National Power and Llght'
around 24o: Carolina Power, around $50,
and American Power and Light, around
&c. All these companies have been pay
Jix-;l dc
with what they are earning.
Both National Power and Carolina
Power are earning around $50 share,
and I,ehigh Power between $50 and $50.
The explanation for the spectacular
Jump in General Electric today was SIM
ply that the Street was waking up to
the potential value of the new Electric
Bond and Share Co. stock, which Is TO
be given share for share, to owners OF
General Electric.
Equipment Stocks jump.
There was another story around to
the effect that the General Electrlc
next move would be the distribution
of it's Radio Corporation holdings, and
enough credence was given 10 TINS
story to precipitate a big rush OF
buying in Radio Corporation stock
Less than two weeks ago Radio stock
was selling around A. Today it was
I'D about 20 points from this level.
A speCtacular rise occurred In
stocks of the railway equipment COM
panies. but for no new reason. All
the indications now point to record
breaking railway buying movement
in the coming year. American Gar
and Foundry was the leader, touch
iRc 200 for the first time. Railway
Steel Springs sold up nearly 8 points.
American Locomotive made a new
high above 100, Lima got above 20
again and Baldwin Locomotive after
opening below 131 ran up over 3
points.
Industrials Are Feature.
The wear ended on the Stock Ex-
change with another series of violent
advances in high-priced industrial
shares This was the big feature. AS
the day went on it outweighed heavy
realizing in other directions and brought
about an upward turn in the main
body of stocks.
1T was perhaps fitting that the old
year should go out with a specu-
lative movement more sensational
than anything that has been seen
so far This was Wall Streets final
tribute to the election results, after
the enthusiasm which these created
for the entire business outlook. The
market was saying more plainly to-
day than at any time in the last
two months that it was looking for
a business boom in 1925. Whether
or not it is oversanguine in its judg-
ment is question which remains to
be decided. Nobody of experience
can look upon such a wild advance
as that of the last few weeks without
feeling some concern.