New Britain herald., 1927-07-01
RISING PRICES AS
new MONTH Opens
Half Dozen Issues However,
Drop to Low Levels

New York, July 1 RN-Risine
prices ushered In the new month il
the stock market. Despite the col
lapse of half a dozen issues to new
low levels for the year. operators fol
the rise bid aggressively for stocks
sending more than a dozen issues t
new peak prices as shorts scrambled
to cover, the rise was accelerated by
the lowering Of the call money rate
from to IA per cent which took
place in the face Of the calling Of
about S50,000,000 in loans.
Business news which has had ar
unfavorable tinge of late, apparently
was disregarded for the time being
With the exception of Baldwin and
a few other specialties, which were
run up at the expense of an over
crowded short interest, spectators
for the advance centered their at.
tention on issues Of companies re.
porting large current earnings, OF
showing prospects OF materially in.
creased profits this fall, on the the.
DRY that these securities would at.
tract part of the enormous volume
of funds now being distributed ir
the form of dividend and interest
payments.
While all sorts OF merger rumors
were circulated regarding the low
priced rails, buying also was asso-
ciated with reports that efforts
would be made to obtain reduction
in the 5 "a per cent return or
property investment now allowed
class 1 carriers, part OF the surplus
over which Is supposed to be used
for the benefit OF the weaker lines
Baldwin. In which the short In.
terest recently increased on the an.
nouncement Of a reduction In oper.
atoms to 10 per cent of capacity
scared IS points to new record tor
at 2s2 IL. New Peak prices also
We're attained by Southern Pacific
Adams Express. Collins and Altman
Rossia Insurance, Reid Ice Cream
Mullins Body, Manhattan Electrical
Supply and American Chicle.
On the other hand. the Amer.
lean issues. American Car & Foun.
dry. Jordan and Cuba company
sank to new 1927 lows.
Wall Street Opening
Stock prices moved within rather
narrow and irregular limits at the
opening Of today's market. Mack
Truck was a point lower at 90 Ia
a new low on this movement, and
heaviness developed in several OF
the other motors. but U. S. Cast Iron
Pipe opened ~ points higher and
fractional gains were recorded by L,
y. Steel common and Texas Gulf
Sulphur.
Despite the APPOINT break In Fam
Gus Players, the lowest price n sew
eral years, the market quickly swung
upward when shorts" were driven
to cover in Baldwin, which rallied
nearly s points before the end oil
the first half hour. The increase OF
slightly more than 100000 in
brokers' loans last week. which are
now made public on Thursdays in.
stead of Mondays, apparently had nc
effect on speculative sentiment. OPP
orators for the rise confidently pre-
dicted a lowering of the call money
rate next week when the midyear
disbursements start TO rour back
into the banks. June was the first
month this year in which the stock
market averages failed to record a
gain over the previous month and
despite the dullness of the last few
days. trading set new high record
for June. Chicago and Eastern i'll
inois preferred was quickly run up
4 points to a new peak at 70, and
there was renewed demand for the
Chicago & Alton issues. General
Electric and American Bank Note
reached now high levels. Foreigns
exchanges opened steady. with de-
mand sterling quoted around
s4S5 ii and French francs around
SOL = cents.