Evening star., 1927-05-19
BLUE CHIP STOCKS
BOUNDING UPWARD
Boiling Market for High
Priced ShareS-Motors
Gets Above 200.
by GEORGE T. HUGHES.

Special Dispatch 20 The Star
NEW YORK. May 19.--Wall Stree
today saw another boiling market fo
high-priced stocks. General Motors
finally got above 5000 a share. Bald
win rose to new high level for al
time. A half dozen other industrial'
and specialties advanced violently
Not all these gains were retained L
the close and at time the trading
quieted down Nor were all the up
turns TO be attributed entirely to spec
ulative eXcesses. One or two invest
ment stocks. as for example. Union
Pacific and American Smelling & Re
f7ning, were included within the day s
list of new highs"
There We're q few weak spots, but
they were not as numerous as IN
other recent sessions. The local trac
tions were all lower and the oils
sagged again, but other stocks which
had been heavily sold earlier in the
week recovered on short covering.
Money renewed at per cent:
General Motors Watched.
The most interest attached natur-
ally to the movement in General Mo-
tors. The stock opened at 199a
which was n new high for the present
shares. and then there was a brief
but sharp struggle before it finally
touched the 200 mark, the goal which
the speculative fraternity has had in
mind for this stock for months back.
The price went above 200 and then
large offerings were thrown on the
market and a reaction of a point or
so enSued.
The rise in Baldwin was approx
mately points directly at the start
and then as in the case of General
Motors realizing sales forced the stock
down again. Other extreme advances
were scored by Case Threshing Ma
chine, Commercial Solvents p. Equi-
table Office Building preferred, Inter-
national Silver and United Drug. All
of these sold at new highs for the
year and some of them at the best
in their history.
AS the session went on new leaders
were substituted for those which had
been in favor at the start. General
Electric came to the front, approach
ing 100. Mack Trucks and Hudson
Motor started upward following Cen
eral Motors. Colorado Fuel added to
its large gain of the day before the
Chicago & Eastern Illinois, common
and preferred assumed the leadership
of the railroad section.
Merger Prospects Factor.
Merger prospects We're evidently
back Of the buying in Chicago &
Eastern Illinois stocks. The Street is
of the opinion that the Pennsylvania
will eventually turn up as the con-
trolling interest in the road. Wabash
had a sharp rise early in the day, but
lost part of it later. Pittsburgh &
West Virginia after having gained II
points yesterday pushed ahead for II
points more as it crossed 148. Union
Pacific above $50 was at the highest
since 1911. ese
The selling in the local fractions,
was-=-very heavy. Interboro and
Brooklyn-Manhattan broke badly to
new%lows for the year. There was
some recovery, however, subsequently.
The fear of adverse political develop
nlents rather than any change in the
4; ;fina ncial condition of the companies
was the accepted explanation of the
wea kness. AS for the oils it appeared
to be a case where short covering had
been completed and there was a lack
of new buying.
Activity Falls OFF.
Activity fell off and the market be-
came increasingly irregular as the
afternoon went on. Baldwin dropped
back below the preceding close while
General Motors held fractionally un-
der 200. There was fair sized rally
in the local fractions and Continental
Baking A advanced in response to the
statement by the president of the com
pany. At least two stocks were con-
sistently strong-American Smelling
& Refining and Mack Trucks.
A buying movement developed in
American Sugar which carried that
stock up to a new high for the year
above 80. Other sugar stocks advanc-
ed sympathetically, including Cuba
Cane preferred and Great Western
Sugar. Il ASNT