Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-05-06
a PER CENT money
.HALTS STOCK GAINS.
Market Turns Dull as Rate
Is Marked Up in the
Afternoon.
BY GEORGE T. HUGHES.

Special Dispatch TO The star.
NEW YORK, May Gan advance in
call money from the renewal rate of 10
per cent, first to IL per cent and then
to IA per cent, checked vigorous up
ward movement in today's stock market,
and turned the list irregularly down
ward, so that 1t left off with the losses
predominating, none of them large.
The first rise in money came shortly
after midday but it was not until the
last hour that the rate was marked up
to IA per cent. The market was most
active in the forenoon when prices were
going up and 1t became dull on each
successive lifting of the call loan charge.
The best resistance was offered by the
oils. Copper and steel stocks were
heavier all day. Electric manufacturing
stocks were strong at the start but
reacted afterward.
Opening prices were higher, with the
list going ahead under the momentum
of last week The leadership was what
Wall Street is pleased to call high
grade. American Can, always popular
trading medium when prices are ad-
vancing, once more registered a new
high for the present shares. General
Electric worked up to within or
points of its previous high.
Utility FavOrites.
General Electric's last statement
showed an increase in earnings for the
first quarter of remarkable proportions.
Still it was only at the annual rate OF
about So share, which is hardly
enough to account for the market price
of the stock Apparently buyers expect
some favorable development not yet
disclosed.
Consolidated Gas was another favorite,
I'D over points on a large volume.
The oils were prominent, practically all
of them recording gains in the forenoon
trading which, however, were not held
entirely when realizing began to make
itself felt. Atlantic Refining made a
new high at II and Standard OIL OF
New Jersey made q new peak for the
year above So, both Of them on a heavy
turnover. For time there was active
buying of Standard oil of California.
The belief is that the production
problem will be solved but regardless of
that, income reports make gratifying
comparison with those of a year ago.
Two corporation news items will serve
to illustrate the character of the bullish
ammunition. One was an estimate that
the Packard Motor Car Co. will report
earnings for the nine months ending
May 81 equal to S7.85 a share and an
other was that the Electric Auto Life
Co. would do a larger volume of bust
ness in the first half Of this year than
in all Of 1923.
Along the same line was the Fox Film
report for the first quarter showing net
for the stock equivalent to S293 a share
or almost $12 on an annual basis. The
stock made a quick response to this
showing with gain of three or four
points.
High Money Effect Seen.
The other side of the picture is repre-
sented by the profit-taking, which had
become heavy by midday, canceling a
good part of the early gain and giving
the market a highly irregular appear
ance. The trouble was the firmness in
money. The renewal rate was 10 per
cent and the fact that prices could
advance in the face of so high an in
itial charge was a tribute to the cour-
age of the present-day trading element.
Even at 10 per cent money was in
scant supply and it looked as though
the rate would go higher. With the
possibility in mind, offering increased
and early trend was reversed.