Evening star., 1928-05-12
STOCKS co HIGHER
IN WEEKS TRADING.
Prices Move Upward in Face
of Adverse Business
Developments.
BY the Associated Press.

BY the Associated Press,
NEW YORK, May l2.-Stock prices
moved into new high ground this week
In the face of unfavorable trade news
and a temporary stiffening 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
followed by increased buying operations
In the other.
Trading started off at a 1000 .O0O-
share pace. slowed down materially as
the day for action on the New York
Federal Reserve rediscount rate ap-
preached then crossed the 1000, 900
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 788 on
Wednesday.
Disappointing Developments.
Two OF the most Disappointing trade
developments of the week were the un-
expectedly large decline of 49,, 900 tons
In the untitled orders of the United
States Steel Corporation and the further
falling of In freight car traffic. Neither
had any appreciable market effect, as
United States Steel common rallied
briskly after the announcement and
wide assortment Of rails moved into
new high ground.
Declaration OF 50 extra dividend
on General Motors common. coupled
with the publication Of favorable sales
ana earnings reports by some Of the
smaller motor car companies, led to a
revival OF activity and strength in the
motor group. General Motors attained
Q new peak at 2l0 early In the week,
but ran into heavy proflt-taking around
that level and lost several points OF its
gain. Chandler Cleveland issues estab-
lished new high records In each trading
session. Chyrsler ran up nearly 5 points
to new top at 77a4 In yesterdays
market.
Oils Rally Later.
Oils, which turned sluggish on the
announcement OF another large increase
In crude oil production last week, rail-
lied later on the raising of gasoline
prices In the Eastern territory and
predictions OF large decrease In the
surplus supply of that commodity. Spe-
cial strength of Richfield Oil of Califor-
MIA was associated with rumors of an
early merger with the Pan-American
Western Co.
Packing issues. led by the Armours,
were under heavy accumulation on re-
ports OF definite turn for the vetter I'm
the industry. Alcohol shares responded
TO stiffening OF commodity prices.
Public utilities presented several points
Of strength, with new peak prices estao.
lished by American Telephone, Interna-
tional Telephone. American Power &
Light, Standard Gas and a number of
other recent favorites. Bucyrus- Erie Is
sues rallied several points In expecta-
ton of heavily increased business re-
sulting from the Mississippi River food
prevention program.
Missouri Pacific Rise.
Inauguration Of dividends on Texas
d. Pacific common stock was followed
by brisk advance In the stocks Of the
Missouri Pacific. which owns approxi-
mately 40 per cent of Texas & Pacific
common. New York Central. Wabash,
Union Pacific, Nickel Plate, Northern
Pacific and st. Louis Southwestern also
reached new high ground.
Outside the stock market speculative
interest was divided between sharp
break In wheat prices and dramatic
decline In Japanese yen on selling. In
spired by the military revolt In China.