Evening star., 1927-05-03
TREND IS UPWARD
IN STOCK MARKET
Trading in Larger Volume.
Rails Prominent-0iIS
Fail to Hold Gains.
BY GEORGE r. HUGHES.

Special Dispatch to The Star.
NEW YORK, May 3.-Prices went
higher on the Stock Exchange today,
actions. No attention was paid to the
increase in brokers' loans announced
after the close yesterday on the
theory that the figures did not fully
stock market and that on the other
hand, part of the increase was due to
borrowings by bankers on account of
new financing. The price improve
ment was fairly uniform, including
even the oils where there was a good
deal of short covering although the
news from the oil production centers
was no more encouraging than it has
been.
Railroad shares were still promi-
nent but today the higher grade of
dividend payers shared attention with
the lower priced speculative issues
that monopolized interest yesterday.
Chesapeake and Ohio was very strong
for time. New York Central ran up
about two points. Buying kept up in
Baltimore & Ohio and Reading. Della
ware, Lackawanna and Western inn
proved. on an earnings basis the
most logical Of these movements was
that in Chesapeake and Ohio.
c. & O. Outlook Good.
At the present rate Chesapeake &
Ohio should report something like $26
Q share for the common stock at the
end OF the year. The fact that this
out look is not fully reflected in the
price of the stock is undoubtedly due
to the delay of the Interstate Com
merce Commission in giving a deci-
sion on the application to acquire
control of Erie and Pere Marquette.
Leaders of the wer-priced rails,
today, included Missouri. Kansas.
Texas, up very sharply. Chicago and
Eastern Illinois preferred at a new
high for the year and the Wabash
issues. Gulf, Mobile and Northern,
which had so sensational an advance
on the day before reacted at the start
today, but subsequently recovered a
part of the loss. Explanation for the
strength in this stock shifted today
from prospective control by another
system to the benefits to be derived
from the completion of the Jackson
and Eastern Line into Jackson, Miss.
Hudson and Manhattan was just as
strong as ever eventually crossing 63
TO new high for all time.
That short covering played large
part in the days proceedings was
evident, not alone from the action
of the oil shares, but from the course
Of some Of the motors. Dodge. Bros
A and the preferred. Pierce.Arrow
common and preferred, White Mo.
tors, Studebaker and Hudson were
all at one time or another higher,
and part of the buying, at least, must
have come from those who had pre-
viously sold for the decline. General
Motors was bought consistently. There
was neither confirmation nor denial
Of the report about an extra cash
dividend, and the speculative fra
ternity was Of the opinion that the
safest plan was to retire short COM
mitments.
Oils Fail to Hold Gains.
The early strength in the oils was
not fully maintained to the end, but
while it lasted it was quite impressive.
Phillips Petroleum, Marland and
Barnsdall were the principal bene-
ficiaries. Domestic production OF
crude oil for the, week, ending April
80 showed an increase over the pre-
ceding week. Gains were reported by
all the chief producing fields. The
oil stocks, however. are not so sensi-
tive to discouraging news as they
have been.
Steel shares were the laggards in
the market Colorado Fuel advanced,
but the others were slow to share
in the improvement elsewhere. Colo.
rado Fuel was up at one time more
than three points. Some spectators
professed yesterday to be disappointed
at the first quarter earnings, because
they did not quite come up to the
most optimistic predictions. There
was no sign of any such feeling in
the market today, and, indeed, the
showing Of $4.63 a share on the COM
mon stock for one quarter would, If
maintained throughout the year, JUS
tify much higher quotation than
the present.