Evening star., 1927-04-05
RISE IS RESUMED
IN STOCK MARKET
Broader and Greater Climb
Reported TOday-NeW
Highs Are Numerous.
BY GEORGE II. HUGHES.

Epectat 4JlSIatth 10 LhG star.
NEW YORK, April 5.-Encoura ged
by Yesterdays demonstration, when
the averages" for typical stocks rose
to The highest of the year, and by the
return OF the renewal rate for call
money TO per cent, speculation for
The rise on the Stock Exchange today
increased in volume and breadth.
Although there were numerous
points Of strength among the indus
trials. it was again the rails that as
stunned the leadership. There was one
sharp difference, however, between to-
day and Monday. The week had start
ed in with the seasoned dividend pay
ers the tavorites, but today activity
shifted to the low priced issues.
Junior Rails in Demand.
Buving of these junior rails today
was at times on such 4 large scale
and so excited that it was family rem
iniscent of the Wheeling & Lake Erie
and Western Maryland incidents
which caused such a commotion ear
ler in the year Those now historic
eXcesses were not duplicated because
when the market seemed about 10
reach the danger stage trading quiet
ed down and Neered toward the hlgh-
er grade stocks. Nevertheless, it was
paving less attention 10 values ana
more to the speculative current OF the
moment. IN that respect it did not in
spire confidence.
1t was Missouri Kansas, Texas
common on which attention was cen
tered at the start. A flood of over
night buying orders carried the price
up 10 a new high for the year. A
little later Kansas City Southern
Joined in and then Gulf. Mobile
Northern, Western Maryland and
others in this group were taken up.
Erie. which had been the feature Mon
dav. made another new high, but 1t
was as conspicuous.
Would Convert Bonds.
Admitting that earnings for nearly
sll these roads are at or around their
best. il does not follow that there is
still large room for Improvement an
the market price. If, for instance,
Missouri. Kansas. Texas preferred
receives the 81 to which 1t is entitled
instead of the ST now being paid, the
result would be conversion OF the ad-
justment bonds and that much larger
dividend disbursements before the
common could receive anything. More
or less this is a typical case.
were the motive. those too can easily
he shown to have been largely dis
counted already Moreover, the In
terstate Commerce Commission has
still to approve it's first large and inn
portant consolidation plan. With
prices for all railroad stocks at their
present level, and particularly the non
dividend payiny issues, any disappoint-
ing decision by the regulating author
ity might easily prove very disturbing.
Pennsy Is Leader.
The leaders in the better railroad
stocks were Union Pacific, Pennsyl-
vania. New York Central and Reading.
The first two named reached new 1927
tops. The buying could well be justi-
fed in the case of Union Pacific and
Pennsylvania by investment return
and with New York Central and Read
ing by earnings and equities.
United States Steel right at the
opening made the new record high
which has come to be expected Of it,
Bids were readily filled, however, and
all the gain was not held. Short COW
ering and new buying played about
equal parts in the advance in General
Motors and in White and Mack
Trucks.