Evening star., 1927-06-19
BULLS HOLD SWAY
IN STOCK MARKET
Belief Shares Will Get Some
of s55O,O0O, 900 to Rein
vest in July Factor.
BY the Associated Press.

BY the Associated Press.
NEW YORK, June 18.-An under
current of strength ran through to-
days stock market despite rather
heavy week end profit-taking and the
uncoVerng of a few weak spots by
bear traders. Operators for the ad-
vance, encouraged by the belief that
the stock market will draw a substan.
tial part of the S550,000,000 to be dis
tributed in dividend and interest pay.
ments next month, staged bullish DEM
onstrations in selected assortment
of rails and specialties. nearly a score
of which were elevated to record high
levels. Trading was fairly heavy for
a halfholiday session the days sales
aggregating 1.071 900 shares.
With call money available in the
Outside market" as low as 3A per
cent, spectators for the advance be-
lieve that they have nothing to fear
from any immediate change in the
credit situation. The weekly Federal
Reserve report of brokers' loans to be
issued after the close Monday will be
awaited with interest, as last weeks
total was exceeded only by the record
breaking volume in the early part of
1926. In view of last Tuesdays sharp
reaction, and the fact that the figures
cover the week ended last Wednes'
day, a decline Is generally expected,
although it is conceded that the financ-
ing of new security fiotations. the total
of which is hard to approximate, may
upset calculations.
Dividend Omissions Effect.
Recent reduction and omission of
several dividends, particularly on pre-
ferred stocks, has caused some un-
easiness. Quoted opinions of business
men and bankers on the business out
look, however, may be characterized as
conservatively optimistic. 1t is point
ed out that the seasonal recession in
some of the basic industries has been
less marked than usual. and that the
price structure remains fairly stable,
Railroad shares were the center of
speculative interest in todays market.
The announcement that a tentative
draft of the revised Southwestern
merger plan had been prepared
brought fresh buying into the shares
Of the roads involved although some
of the previous purchasers showed
disposition to take profits on the rally.
Lehigh Valley ran up 9 points tc
1873 on the publication of an optimistic
statement by President Loomis, but
1t later sold down to 1271a. Western
racine was run up 3as points to 37%,
out tailed to maintain all OF it's gain.
Simultaneous strength of Pittsburgh
q West Virginia, Pittsburgh Coal and
pittsburgh Terminal Coal, all of which
scored extreme gains of 4 to s points.
led to the belief that buying was for
the account of identical interest, be-
lleVed in some quarters to be the Van
SWeringens. The name of William
Z. Durant was brought forward by
one of the financial tickers as a. buyer
OF New Haven. the recent advance in
which also has been associated with
the reports of a refunding of the
roads debt to the Government.
Among the many issues TO reach
new high ground were st, Paul pre.
ferred New York, Ontario & Western.
lntertype Corporation, Eaton Axle'
vivadou, Transcontinental Oil and
White Sewing Machine. One block
OF 1880 shares of Consolidated Tex.
tile changed hands at Z, with subse. |
quent sales setting a new 1927 ton
above that figure.
White Motors broke several points
to a new low at 423, and brought
sympathetic selling into Mack trucks,
Yellow Truck and some of the other
motors.