Evening star., 1928-04-08
STOCKS ADVANCE
DESPITE BAD NEWS
Collapse in Rubber Prices Is
Feature of Week--Bond
Values Hold Firm.
BY the Associated Press

BY the Associated Press.
NEW YORK, April 7.-Speculative
interest in this weeks markets was
divided between the continuation of
the sharp upward movement Of stock
prices and the collapse in crude rubber
quotations to the lowest levels since
1924 Bond prices held firm. with some
good gains recorded by the semi-specu-
lative liens Foreign exchange rates
held steady in rather featureless trad
ing.
The advance In stock prices took
place in the face of a series OF ordi-
narily adverse market Developments.
/ These included a huge increase in
brokers loans. which are now at record
high levels: falling off in freight-car
traffic, an increase in crude oil produc-
ton. further exports of gold, stiffenin3
money rates, omission of the United
States Rubber preferred dividend and
indications that the reduction IN Fed
eral taxes would be less than previously
expected.
There we're few of setting develop
ments. most important of which was
the reported agreement of Eastern rail-
road executives on a four trlli1k-line
consolidation plan. The increase I'm the
regular Atchison dividend from. 81 to
$40 annually and the optimistic state
mentS on business conditions by Walter
Chrysler. automobile manufacturer, and
President Parsons of the F. w Wool
worth Co. helped TO maintain bull1sh
enthusiasm The break in rubber fol-
lowed the announcement of Premier
Baldwin that British export restrictions
would be abandoned on November
next. Crude rubber dropped cents a
pound the first day and 2 cents more
/ the second day after the announcement.
touching new low level around l9
cents. but 1t made partial recovery later.
Rubber shares were weak in sympathy
Airpiane stocks featured the trading
on the New York Stock Exchange, both
Wright Aeronautical and Curtiss scar
ing to new high levels ON buying infu-
enced by expectations Of large Govern
ment and private contracts General
Motors vas sluggish early in the week.
but started forward at brisk pace on
Thursday on reports that q new pool
had been organized IN that issue. Other
motors advanced in sympathy. Packard
mounting 10 new peak price.
Radio was reactionary most of the
week Officials OF the Exchange an
noGnced after the close Thursday that
no further reports would be required of
dicating that the recent investigation
had failed TO disclose evidence OF the
technical corner" believed TO have been
created when the stock started ON q
wild rampage about month ago.
Steels were iaggards this week Pub
lie Utilities presented several points OF
strength. particularly among the New
York traction and gas shares Oils we're
under steady accumulation. with sharp
advances in Atlantic Refining and Rich
field OH of California among the fea-
lures In that group.
Railroad shares gave one of the most
impressive demonstrations Of group
strength. the general average mounting
to new high level for the year. New
peak prices Tor the year or longer were
registered by number of issues, tn
Guiding Wabash, Texas e. Pacific: Pitts
burgh a. West Virginia, Baltimore Ss
Ohio. western Maryland common and
second preferred and fackawauna>