The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1928-05-12
Financial Review
BY STANLEY w. PRENOSIL


(Associated Press Financial Editor)
New York, May 12.-(F-Stock
prices moved into new high ground
this week in the face of unfavorable
trade news and temporary stiffen-
ing Of money rates. Leadership of
the market shifted back and forth
between the rails and industrials,
the appearance Of selling pressure
in one group invariably being fol-
lowed by increased buying oper-
atoms in the other.
Trading started off at 4,OOO. OOO-
share pace, slowed down materially
as the day for action on the New
York Federal Reserve rediscount
rate approached, then crossed the
100000 level again when the bank
announced retention of the per
cent charge. Long ticker delays
were frequent, with the number Of
individual issues traded in setting
new high record at 1888 on We'd
nesday.
Two Of the most disappointing
trade developments of the week
were the unexpectedly large decline
of 100000 tons in the untitled orders
of the United States Steel corpora
ton, and the further falling off in
freight car traffic. Neither had
any appreciable market effect, as
U. S. Steel common rallied briskly
after the announcement and a wide
assortment of rails moved into new
high ground.
Declaration Of a 81 extra dividend
on General Motors common, coupled
with the publication Of favorable
sales and earnings reports by some
of the smaller motor car companies.
led to a revival of activity and
strength in the motor group. Gen.
eral Motors attained a new high
peak at 210 early in the week, but
ran into heavy profit-taking around
that level and lost several points of
its gain. Chandler Cleveland issues
established new high records in each
trading session. Chrwsler ran up
nearly 5 points to a new top at
n ga in yesterdays market.
Oils, which turned sluggish on the
announcement Of another large in
crease in crude oil production last
week. rallied later on the raising of
gasoline prices in the eastern terri
tory, and predictions of large de-
crease in the surplus supply Of that
commodity. Special strength Of
Richfield oil Of California was asso-
ciated with rumors Of an early
merger with the Pan American
Western company.
Packing issues, led by the Ar
mours, were under heavy accumu-
lation on reports Of definite turn
for the better in the industry. Al
cohol shares responded to q siffen-
ing Of commodity prices. Public
utilities presented several points Of
strength, with new peak prices es-
tablished by American Telephone,
International Telephone, American
Power & Light, Standard Gas and q
number of other recent favorites.
Bucyrus- Erie issues rallied several
points in expectation Of heavily in
creased business resulting from the
Mississippi river flood precention
program.
Inauguration Of dividends on
Texas 4 Pacific common stock was
followed by . brisk advance in the
stocks Of the Missouri Pacific which
owns approximately 40 per cent Of
Texas & Pacific aommon. New York
Central, Wabash, Union Pacific,
Nickel plate, Northern Pacific and
St. Louis Southwestern also reached
new high ground.
Outside the stock market specu-
lative interest was divided between
4 sharp break in wheat prices and
q dramatic decline in Japanese Yen
on selling inspired by the military
revolt in China.