Evening star., 1928-04-06
RAILS AND COPPERS
LEADERSAT CLOSE
Scrapping of Loree Plan One
of Outstanding Features in
Financial Week.
BY CHARLES F. SPEARE.
=, n,sn,,cb IN The Star

Special Dispatch TO The star
NEW, YORK, April 6-Specul&tive
Wall Street will have ample time over
the Easter holidays suspension OF ouSi-
ness activities 20 give serious considera-
ton to everything that has Tansplfea
on the Stock Exchange during the cur
rent week. However, the element iaVoT-
ing continued price appreciation III
market values left the flnancial COM
munity impressed by the manner III
which trading ended the week.
One of the most encouraging Factors
was the strength of the railway shares
and the copper stocks. In this 1t saw
some justification. In the case OF the
former group it had not shared to the
extent of others in the prolonged up
ward movement and II was natural
sequel that they should have been
drawn into line.
Carrier Problem Helpful.
So far as the Eastern carriers were
concerned. there was the added tncen-
tive Of the elimination Of the long
drawn-out endeavors of representatives
o fthese roads to effect a settlement Of
differences which have held up plans
of the Loree fifth trunk line system.
Although the conference of railway
executives adjourned Thursday after
noon without issuing a formal state
ment, 1t was learned that an agreement
On a four-system merger. scrappins the
Loree five-trunk system. was effected
largely through the influence of Otto
n. Kahn. the banker for Mr. Loree.
Anaconda Copper sold at its highest
since 1920 toward the end OF the week.
Basis for strength in the copper stocks
apparently lies in the fact that with
the metal above the I4-cent level, II
Is at the highest for the present move
with indications pointing definitely
toward continued improvement If cur
rent demand is to keep up. There Is
. tendency on the part of consumers
70 come into the market for immediate
requirements only. but at the same time
the buying has been more widespread
Similar conditions in the past have re-
suited in desire on the part of large
consumers to increase stocks on hand
and have had reflection in earnings
OF the more prominent producers.
+ Wall Street views the upward move-
ment in General Motors as a special
DEVELOPMENT. One Of the leaders of the
automobile industry has been credited
with the assertion that II other indus
trials are entitled TO sell on q basis OF
40 eAtASS NlEIeIHI MOLOTS
earning at the rate of SIS share is
selling out Of line and should have q
market value of $225 share.
Little Profit Taking.
Apparently this was all that was
needed to fire the speculative imagina-
ton In what was to be expected OF the
market for the stock. As the week
ended on the Stock Exchange, rumors
we're current that powerful stock market
and automobile interests were actively
at work proceeding to make the at
tributed assertion good"
In view Of the tremendous total oi
brokers loans reported by the Stock
Exchange for February and the fact
that operations were facing a three
day suspension. the speculative CON-
munity was impressed by the fact that
there was so little proflt-taking and
evening up OF accounts yesterday The
market closed not far from the top for
the leaders. with many others still In
demand.
The latest figures of the Federal
Bank, made public after the close yes
terday disclosed that during the week
ended April 4. brokers loans increased
ei53 ,920, 900 10 a new record of 8S,o7D..
302, 900, compared with &3,e26, ,370, 900 or
March 20 and $1,000, ,25o.000 on April
9, 1927.