The Washington times., 1929-02-02
STOCK PRICES
GAIN DURING
WEEK
BY w. S. COUSINS

fNEW YORK, Feb. 2 Q.N.s).
With easy money rates and the
most favorable reports from repre-
sentative industrial and railroad
corporations, stock moved buoy
antly and brilliantly to the higher
price levels this week. Spec
IiIatiye interest shifted around cons
siderably from one group of stocks
to others, but in the long run the
old favorites in the copper, railroad,
motor and steel stocks always re-
gained their place at the head of
the line.
Profit.taking and short selling of
a number Of the well-known motor
car, copper and speciality stocks
unsettled the market in the first
three sessions. Relying upon the
aid of stiff money market, the
bears opened up their heavy guns
in an effort to drive prices down,
ward as a preliminary to the Feb
ruary reaction Chrysler Motor
and few of the speculative leaders
were heavily pounded, slipping down
to the years lowest prices, and
losses in the 1igh-priced favorites
extended all the way from 5 to Is
points from the January peaks.
Utilities Lead
It required very little buying of
the public utility stocks to force
prices of the new favorites upward
to points. Preceded by the most
effective propaganda, the bulls
pushed the stocks of the gas and
electric light and power stocks
prominently in the limelight and
IN eli THr,
wide interest in the new favorites.
It was the old story of making
stock active on the tape" and en-
ticing the spectators who consider
themselves such slxilful tape readers.
A special dividend on United
States Steel stock was not expected
in well.tnformed quarters and decla-
ration of the regular dividend only
was no surprise to Wall Street.
For the first time since the turn
Of the year, the railroad stocks ap-
peared to be in a position to re-
spond to the favorable earnings and
carloadings statements that have
been coming forward. The De
cember net income of the first so
big roads to report to the Com
merce Commission was more than
60 per cent above that of the same
month last year, and the Commerce
Commission s decision approving the
unification of the New York Cen
trails subsidiary lines was held TO
be, an important step in the direc-
tion of complete consolidation OF
the transportation systems as re.
Quired by the transportation act.
Rails Active
,,~,r, ,,of,-k 3,1y,av1 9O1
New York Central was easily the
leader of the high grade railroad
shares in the upturn of prices.
Baltimore and Ohio, Chesapeake
and Ohio, Erie, Southern Pacific
and Pere Marquette. moved upward
to points. Formation of q num-
ber OF new investment trusts has
been an important factor in the
rapid disappearance of the floating
supply of railroad shares from the
market.
Buying OF industrial stocks by
the Hlewly-formed investment trusts
was undoubtedly an important fac.
tor in the strength and activity of
the market this week. Millions of
dollars of new capital has been en-
ployed in the organization of these
trusts, whose business it will be to
follow the market, picking up good
stocks at attractive prices and
distributing them at favorable OPP
portunities. Just now the buying
process is going on, and that sets
the pace for thousands of small
traders all over the country.
with the settlement of the Janu-
ary and February interest and
dividend payments, the money
market is expected to ease up con-
siderabIy after the middle of
February, and the bulls are securely
In the saddle.