Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-03-24
STEEL TAKES LEAD
IN STOCK MARKET
Entire Market HardenS in
Sympathy With Shares.
Rails Are Strong.
Special Dispatch TO The Star.

Special Dispatch TO The Star.
NEW YORK, March 24-After g
morning of aggressive buying of the
high-priced railroad shares, leader
erShip in the stock market was as
sumed by the steel stocks in the late
afternoon. United States Steel sold
at new high record as it touched
165. The entire market hardened in
sympathy.
The action of the Lackawanna d.
rectorate announced after the close of
business yesterday, calling for the for.
nation Of a holding company with a
view to distributing to stockholders
more than $50, 100000 Of the company's
assets. did not come as a complete
surprise to Wall Street. However. it
revived speculation as to what could
be expected along similar lines by
other roads. Delaware and Hudson
vas a case in question.
Hudson Coal Holdings.
Attention was called to the com.
pany's large holdings of Hudson Coal
Co.. and many predicted early dis
tribution Of the treasury assets of this
road. Lackawanna, because of it's
recent spectacular rise, dropped rather
sharply with the good news out, while
Delaware G. Hudson was in active de-
mand close to it's best prices. Chesa-
peake & Ohio went to it's best prices
for 1927. and Reading was conspicu-
ously strong. Including extras. Nor
folk G. Western paid last year $40 a
share. If that rate were to be con-
tinued in the present year. the stock
would still give an attractive yield.
even at today's high price. There
was the additional consideration of
the effect of a soft coal strike on earn
ingS. which in the case of the Norfolk
& Western, serving non-union terri
tork would be beneficial.
The characteristic switching from
one group into another found the
public utilities susceptible to further
buying operations. American Tele-
phone went forward more than a
point. But the big speculation Gen.
tered in the lower-priced members.
like American and Foreign Power and
Electric Power and Light, both of
which made new highs. There was
nothing that was not already known
to account for the strength in this
quarter. Earnings have been con-
sistent and have improved with ex-
panding operations. American Power
& Light was another favorite.
New High Records.
New high records for the year were
reached in Youngstown Steel and Vana-
dunn. The market for Crucible hav-
ing absorbed recent offerings, came
back readily. United States Steel held
we'll above 1853 most of the session. The
midweek steel trade reviews, stress.
ing the high rate of operations of
the steel centers, had a sustaining in
fiuence upon the steel stocks.
The special operation in Pressed
Steel Car kept on carrying the price
to q fresh high, at the same time Of
ferings were having their effect upon
Loew's, Inc, accompanying rumors Of
new financing. Kelsey Wheel went
into new low ground while Houston
Oil. which played a prominent part
in the recent speculation for the rise,
broke another 2 points or more. Other
oils were little changed. The sugars
were feeling the depressing effect of
the unfavorable ituation in the raw
sugar market, although offerings were
not urgent.