Evening star., 1927-05-13
ADVANCE RESUMED
IN STOCK MARKET
Nickel Plate Shares Lead
RaiIS-Special Attention
Paid General Motors.
BY GEORGE II. HUGHES.
Special Dispatch to The Star

EpSclal Dlepdtcn TO THe StdF
NEW YORK, May 13.-The stock
markets Interpretation of the over
night developments was favorable, as
was evident from the action of prices
today The session opened with some
selling, which was quickly absorbed,
and then the advance was resumed
Traders found support for their belief
in a continuance of easy money in
the Federal reserve statement, which
showed total gold reserves at the high
est since 1924. This was not taking
into consideration the new item of
gold held abroad. understood to be the
sum purchased from the French.
Interest in the railroad list centered
around New York, Chicago & St.
Louis. and the shares of the roads as
sociated with the Chesapeake & Ohio
in the proposed consolidation. Nickel
Plate advanced by leaps and bounds
to the highest price on record.
Held Undervalued.
Puvers asserted that the stock was
tff4ipTvalued on the basis of the over
the counter price for the shares Of
the new Chesapeake Corporation,
which are to be distributed to stock
holders of the New York, Chicago d
ST. Louis. Chesapeake & Ohio follow
/
for the wear. Erie first preferred set
lip new high for the year as well,
1Ipon the expectation of a guarantee
of 81 dividend.
The pressure against the Chicago
Great Western stocks was lifted TO-
day and prices for both the common
and preferred rallied. Norfolk Il
Western rose . points to 180 and for
a time Atchison and New York Cen
trail were somewhat higher
Houston Oil went through Its old
high early in the day. Before noon
it had risen more than points from
the preceding close without attracting
anv profit taking of consequence.
National Supply came back easily,
but the general run of the oil stocks
was not importantly changed.
Traders were willing to await the out
come of the concerted effort to limit
production before undertaking new
commitments.
The outstanding feature of the
utilities again was Brooklyn Union
Gas which achieved a new top for the
present no par value shares. Consol1-
dated Gas was strong and the TWO are
still connected in the gossip OF the
day. Standard Gas and Electric was
the leader of the holding company
dlSO dl AlS OCSt ACA SiAS y ~N+A'
Public Service of New Jersey, Brook
lvn Edison and others of this group
went along. The local fractions were
fractionally lower, but the selling OF
the day before was not resumed.
General Motors Interesting.
Special attention was paid to the
General Motors The popular theory
was that after the expected 81 extra
dividend had been declared profit
taking would set in and the stock
would be a sale. The stock did react
at the start, but it came back quickly,
showing evidence of powerful sup
port. Hudson and Chrysler were the
strongest of the independents.
There were the usual number of
specialties to establish new highs on
the movement. Among them were
Case Threshing Machine, Standard
Milling, Fleischmann and United
Fruit. Baldwin ran up nearly 5
points on what was supposed to be
short covering, although it is hard to
understand just who are the hardy
spectators courageous enough to go
short of stock with so small float
ing supply as Baldwin and in which
previous sellers for the decline have
been so severely punished. Pullman
was the object of special buying, |
which revealed a scarcity of offerings |
as the price advanced.