New Britain herald., 1926-08-27
DIVIDEND PAYING
SHARES IN DEMAND
Market Today Makes Further
Recovery From Decline

New York, Aug. IT. Rl-Stock
prices made further recovery in to-
days market, which was featured
by a brisk demand for the dividend
paying railroad shares. Cumulative
evidence of business prosperity re
vealed in the weekly reviews of
various lines of industry and the
fact that the first 40 class ] rail
road to report earnings showed an
average gain of nearly 80 percent
above the corresponding month last
year helped to create bullish enthus-
asn.
Atchison was the leader of the
rail group, crossing Isl 10 the high
est price on record for an over
night gain of points. Steady ac-
emulation of the Northwestern
carriers was in speculative expecta-
ton of increased dividend disburse-
ments by roads in that territory be-
fore the end of the year.
The demand for the industrials
broadened as public participation in
creased, tobacco giving an impress
sive demonstration of group
strength with several issues in that
group mounting to new peak prices
for the year. Union Tank car was
bid up over points to a new top
and Warner Brithers Pictures, fea-
ture of recent markets, selling 5
points above yesterdays final quo
tation by early afternoon. Motors
equipments and steels also present
ed several points of strength.
Retention of the per cent call
money rate for loans over the week
end and the cropping out of a few
soft spots failed to check the gen.
eral upward movement. The week.
ly statement of the Federal Reserve
bank, showing q moderate increase
in the local reserve ration and
substantial drop in the rediscounts
was regarded as a favorable stock
market factor.
Wall Street Opening
Stockpriccs displayed a strong
tone at the opening of today's mark
ct, with active buying operations re-
sumed in the rails and standard in
dustrials. Initial gains of a point
or more were recorded by General
Motors, General Asphalt, L. S. Rub
Der, Atchison and American Smelt-
ing.
The demand for the rails was ac-
CELEBRATED by the unusually favorable
nature of most Of the July earnings
reports now being published. Atchi-
son, which showed an increase of
over 100000 in net income last
month above the same month last
year, was quickly bid up over 3
points and New York Central, At
lantic Coast Line and Southern rail-
way sold I TO 2 points higher be-
fore the end of the first half hour.
Union Pacific and Great Northern
preferred mounted to new high
levels for the year. Pool operations
number of specialities, Howe Sound,
Reynolds Tobacco Is, and Brunswick
Bake Collendcr being elevated TO
new 1926 peak prices. The heavy
demand for new bond offerings in
an ordinary dun season and pust a
few weeks before the federal income
tax date was interpreted as an indi-
cation that huge sums are still seek
ing investment despite the recent
hardening of money rates. Foreign
exchanges opened steadily with
trading duh.
Prices fiuctuated fttfully for a
time as weak spots began to creep
out here and there. Pressure was
directed against several of the mer-
chandise and motor accessory issues,
Stewart-Warner falling to new
price for the year. The
bringing forward of stocks that had
long been sluggish indicated that
the professional element was fer
reting out individual shares that are
readily moved to substantially higher
levels owing TO the small floating
supply. The renewal rate on call
loans continued at per cent,