Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1926-12-18

NEW YORK MARKET
Features OF the Days Dealings in
All the Leading Stocks

New York. Dec. 17.-LPl-An
enormous demand for the common
stock OF tile United States Steel Cor
pora ton, inspired by the unexpected
declaration OF 40 percent stock div
idend. carried that issue up over
five points today TO 100 IL, the
highest price ever recorded and set
in motion spectacular bun move
ment in scores OF other high grade
railroad and high grade industrial
stocks. Total transactions in steel
common exceeded COG. 600 shares, or
approximately one-fourth of the
days entire volume of business.
The proposed distribution of d
$500. ZOO. 900 melon to steel stock
holders was widely accepted as a re-
assuring development on the busi-
ness outlook for 1927. and aroused
widespread hopes of similar distri-
buttons on other rich mems stocks -
Spectacular rallies were staged in
such issues as Allied Chemical,
American Smelling. National Lead
and Pullman, all of which sold 3 TO
II points above yesterdays final quo
tations.
AS q group. the rails did even
better than the industrials under the
leadership of Atchisou. which scored
an extreme advance of six points at
100 is, also new high record
Buying of this issue was accompa-
MED by rumors of a stock dividend
of % to 40 percent New York Cen
trail. which is reported TO be the next
stock in the so-called Morgan
group" to receive special attention,
was bid up over four points to
143 IA. Southern Pacific, which is
expected to increase its regular cash
dividend soon, moved up nearly ?
points to no rs. Reading. mention
ed in connection with a cash extra.
climbed nearly points. All react
ed slightly from their high levels at
the close.
The first sale of steel was a block
OF 10000 shares at the spread OPEN
in price of 15S IL to 100. which
was not recorded on the tape until
nearly 10 minutes after the opening.
Thereafter, for two hours. transac-
tons appeared on the tape in long
strings, ranging from 5000 to $4,000
shares. Trading slowed down dur
ing the afternoon but the quotations
We're never more than half a point
away from the extremes of the orig
inal spread price.
Bear traders. who had sold stocks
freely during the past few weeks in
anticipation of Slackening in bust
ness next year, rushed to cover IN
the high priced industria1s in which
other melons are likely. Scores of
the minor fndustrials. however. i'm
proved only fractionally while a
number actually closed lower on the
day. With the exception of a crop
of IL points in Loose-WiIes Bis
cult and a point or two in National
Gamers. National Department
Stores. Pathe and White Rock. the
recessions We're held to fractions
Call money held steady at five per-
cent all day despite the unusual in
crease in trading and plenty of funds
were reported available.
Commodity prices held fairly
steady.
Foreign exchange trading was
quiet.
Buying interest dwindled in the
buying market as Wall Streets spec
ulative energies were monopoiiZed
by the vigorous bull movement in
stocks. Few attempts We're made to
unload bonds at the prevailing high
prices. however. and trading merely
relapsed into general inactivity.
The only section of the market
in which bidding was at all brisk
was the foreign group. The grow
tag belief that the French govern
me mt will obtain loan here next
year to support its currency stimu-
lated a demand for these bonds, all
OF which advanced fractionally to
new high levels. Belgian Is of 1880
reached a new peak at t01 81
Selective buying of industrial liens