Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-07-01
BULLS GAIN HOLD
. ON STOCK MARKET
Definite Upward Trend To-
day-Southern Pacific
Feature in Rails.
BY GEORGE T. HUGHES.

| Special Dispatch to The Star.
NEW YORK, July 1.-The stock
market after almost a week of ir-
regularity in which the tendency for
| the most part was toward lower
| levels, turned definitely upward to-
day
About the only development in the
overnight news, which could have
been construed as unfavorable from
market standpoint, was the in
crease of S2,050.000 reported in brok-
ers' loans for the week ended June
80, under the revised method of the
Federal Reserve for making these fig
ures known as of Thursday instead
of Monday. Coming, as it did. on
top of the $44.000.000 decrease in the
compilation announced last Mon
day. the expansion was somewhat of
a surprise. But it failed to influence
speculative sentiment.
The feature of the railway section
was the persistent demand at new
high prices for Southern Pacific,
Across 11S it was at it's highest since
1911.
Increase Talk Stronger.
Because of the fact that crops along
the territory traversed by the road
are known to be good and that earn.
ings are expected to hold up well
throughout the second half year, the
possibility of an increase to 81 basis
was given more credence. But in view
of the conservative policy of the direc-
tors, many were of the opinion that
there is little likelihood of an increase
in the Sc rate, when directors meet in
August. Chicago and Eastern Illinois
preferred sold at it's highest since it
was listed in 1921 and the demand
kept on for Chicago and Alton pre-
ferred, although it was difficult to see
anything in the earnings of these two
roads to account for the demand. New
York Central, selling eX the So quar-
terly dividend, retraced a good part of
the amount deducted from the price,
while the rights to subscribe to the
new stock were dealt in at Az.
Baldwin Locomotive had another of
its characteristic sharp upturns, and
it was evident that the shorts in this
issue were being severely punished
The report was current that two
prominent individuals had acquired a
substantial amount of the floating
supply over the past few months and
were in no hurry to relinquish their
holdings.
General Railway Signal crossed
121, but the demand was not as per
sistent as it had been earlier in the
week. A new high record under the
present share capitalization was es
tablished in General Electric, and
there were rumorS that plans were
under consideration for the retire
ment of the special stock"
HoIls,~~ O. TcH-
The further advance in Collins &
Altman to it's highest price for al
time revived the rumor that the Gen
eral Motors Corporation was seeking
to absorb the corporation. Speculative
quarters were discussing the proba
bility of an exchange of one share Of
the per cent preferred stock of the
latter company for each share of Col
Inns & Altman common. This would
mean a price of between $3.50 and $12;
for Collins & Altman.
The market for motion picture
shares continued to be influenced by
the unfavorable conditions prevalen
in the industry, as evidenced by thu
| recent general salary reductions
Famous went to a new
low for the year, below "a.
The motors, save for Packard and
Chrysler, were in supply whenever
bids came into the market. Genera
Motors hardened in the afternoon ant
Hudson showed it's ability to absort
these offerings around the 80 level
Mack Trucks at 95 was off points
The oils continued to be influenced
by the unfavorable high rate of pro.
duction. Houston was an exception
and shot forward another 4 points
or more,