The Washington times., 1929-07-13
WEEK s TRADING
FEATURED BY
UTILITIES
ny w. s. COUSINS

i ~ W. De NVOe1A4NO
NEW YORK, July rs (I.N.S.).--
Bears in the stock market were
badly scorched this week In at
tsmpting to solve the riddle Of
hrokers loans.
since soaring prices for specuIa.
I've stocks have at all times in the
past forced substantial increase
"a brokers loans tso.called), the
noars concluded that this weeks
mlky-rocketing OF the utilities and
epecialt1es would have the same
fleet. They sold stocks freely on
hursday-too freely. When the
eserve Boards report was made
pubnc, It showed an actual shrink.
1sa OF $4,000, 900 in brokers loans
hrstead OF the expected expansion.
he bears we're in a hole, and paid
Rearly on Friday for the privilege
DE- covering their shorts.
The reason for the change or
eront In speculative borrowings is
not far to seek. In the last two
weeks investors, in anticipation OF
= billion dollars. more or less, to
be paid TO them for July interest
3nd dividends, bought stocks and
bonds In the principal markets,
Borrowing heavily from the banks.
This week, when the dividend
checks rolled In, they paid off their
loans at the banks and bought
stocks and bonds with their own
money, and not with advances from
the banks. Stock prices went nm
and loans went down.
Speculative interest swung over
again to the public utility stocks
and high-priced specialties. AcclIrn-
ulatten Of the gas, electric liOht
and power stocks by the Investment
trusts and strong financial Interests
has practically swept the narlret
bare of these shares at anvthinr
approximating the prices paid for
them up to the turn of the months
ana the bullish pools were quick ~
take advantage Of the predicamenr
pf the bears.
Brooklyn Union Gas ana ConsoIi.
uated. the New York City I.ightinp
ana Power Companies. rose ahost
~ points each in tho lead Of the
upward move in the utilities while
new gains Of from 2 to 10 points
were scored for American and For.
elgn rover. American Waterworks,
United Gas Improvement, United
corporation, National Power and
Light, Columbia Gas. Public Service
of New Jersey, etc.
There is little room for doubt that
the investment trusts and powerful
bankers and financial interests are
IN the market for an almost IN.
UNITED amount Of stock of the pub
NC utlllty. steel. railroad and indus
trial stocks generally. In some
cases they are seeking stock for spe-
cial purposes, representation on the
boards, or even control Of the i'm
portant properties. In many cases
they have no other motive than the
!ong-puH accumulation Of stocks for
investment. At any rate, their pur-
chases have stimulated q broad pub.
lie demand for the shares of the
same corporations at the highest
prices in their history.
United States Steel common, which
In the last week or two was able to
reach the border of the 5000 goal set
for the stock earlier in the year.
rushed past that goal this week to
sell at 5000 a share. Bethlehem, its
spectacular running mate, jumped
about points to $40 a share.
american Telephone and Telegraph
the sleeping giant carried its sensa.
tional rise to 246, for a new 2O-point
rise and International Tel. & Tel.
was well bought above 10.
The bears had better success with
ehe motor stocks, driving General
Motors below 20 and Chrysler to
II. scattering the usual ugly rumors
about probable falling off in net
earnings Of the motor-car manu-
&acturers in the second half Of the
year. That these rumors were not
taken seriously, but investors with
handfuls of money was seen in the
rapidity with which stocks were
snapped up as soon as they reached
the low-price levels.
Excellent buying Of railroad stocks
carried prices OF the better grade
Of dividend payers to the highest
price levels in financial history.
Nickel Plate was a favorite, as also
was Chesapeake and Ohio, selling
above $50 for the first time. Ale
gheny and Chesapeake Corporations,
the Van Sweringen railroad holding
company. established a new high at
S6 In vigorous buying by well.in-
formed investors
Call money ruled at per cent,
with forecasts of ''easy money" not
yet fulfilled.
Aesst4gt 8 t,-H
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