Evening star., 1924-05-06
SLIGHT RISE NOTED
WITH ACTIVE BUYING
Covering by Bear Operators Dis
pels Dizziness of the
Early Trading.
HEAVY TONE IN OIL STOCKS
Steel Common Driven Below SO,
But Rallies Later.
BY STUART p. WEST

EpecIal Dispatch to The Star.
NEW YORK, May 6.-During the
frst half of the stock market session
today prices changed very little and
the trading was extremely dull. But
in the afternoon, as bear traders
found that news was having no eff
feet, they commenced covering their
contracts. and this, with little fresh
buying here and there. led to mod
crate advance.
Oil Stocks Depressed.
Oil stocks again felt the depressing
effects of the statistics published Mon
Aay by the Department of the Interior
showing a new high record for gasoline
in storage on April /. The market 1or
the oil shares was plainly getting ready
for the seasonal price-cutting, when IS
apt to come earlier than usual inns
year, owing to the exceptional supplies
on hand. Standard Oil of California
slipped off a point In the rest of the
oil group the tone was heavy, out tne
losses were small. Large blocks OF SIN
clair Oil changed hands at 20 Where
there was evidently some strong support.
This was within half point, however,
of the lowest of the year.
slight Demand for Utilities.
For a time there was some demand
for public utility stocks. People
Gas of Chicago went up more than a
point. Where it was selling today
the return to the investment buyer
Consolidated Gas of New York did
not gain anything. but continued to
be consistently taken, first, because
of the attractiveness of the return
over IA per cent-and, second. pc
cause OF the recent decision favor
ing the New York Telephone Com
pany. In upholding the 10 per cent
increase in telephone rates on the
ground that this was necessary to
cover enlarged expenses, the court
was laying down a principle which
could apply TO gas and electric com
panieS under similar circumstances.
This was what buyers of Consoli-
dated Gas stock had in mind
Brooklyn Edison, in its recent ad
vance, has gone directly against the
argument that new stock issues ar,
n bear argument" At today's higf
ii was up over 4 points since tn,
circular of May / offering s16,000,00t
of new stock
Driven Down Bat Rallies.
Steel common was driven dowI
below SO at the start, but late
rallied. The bear traders tried t
make capital naturally out of tn
Senate action on the tax bill, bu
IndI Jney were bringing Ou
no real offerings of stocks.
The bull side was encouraged By
this demonstration that the market
could stand up under unfavorablt
news, Yet there was not much dis
position to attempt fresh operations
for the rise. Decided unea siness, how.
ever. was displayed by shorts in Bald
win Locomotive, Studebaker, Bethle-
hem Steel and others where there
has recently been active speculation
for the decline. These short sellers
we're disturbed because the Washing.
ton news, coming on top of the un.
certain trade reports, was not Undue.
ing any liquidation
Rail Shares Favored.
The afternoon buying favored tn,
railway shares or rather the lower
priced members of the group Fol
this the motive was particularly
plain. A number of these roads have
reached the stage where they car
afford to cut down the extraordinary
maintenance schedules which were ir
force during the four years following
the REIMBURSEMENT OF governme mt
control
Industrial shares for the most par
did little. Professionals were eau
tiouS on the buying side, in view OF
The approach of the nominating con-
Nenuons, the uncertainty of politics
generally and the difficulty of Wis.
ualizing any forward movement in
outside trade for some time to come
French francs were somewhat high
er, but otherwise the foreign ex.
changes continued dull. Apparently
there was some speculative buying
Tor American account in francs or
the idea that the French elections
would turn out in favor of the Dawes
program the same as the German
elections.