The Washington times., 1929-06-15
UTILITY STOCKS
LEAD WEEKS
TRADING

NEW YORK, June is UNS).-
Three sessions OF the dullest mar
kets since last August, with a
daily turnover of approximately
1000, 900 shares, were followed this
week by sharp upturn in a fav.
ored list of public utility. electrical
manufactured and specially stocks,
with a so per cent increase in the
volume of trading. The action of
the stock market appeared to JUS
tify the old Wall Street maxim,
that it never pays TO sell a dull
market" but time will tell whether
the vigorous upswing of prices was
a flash in the pan or the Inaugural
ton of another substantial. bull
market.
Mergers RumOred
Special prominence was given to
the public utility stocks by reports
and announcements of the merger
and consolidation of a number of
the important upstate gas and elec-
trio light companies, with property
worth in excess of $500, 900 900. The
mergers will have the strongest
financial backing, the most power
full American banking houses having
become allied with the utility heads
in consummating their big projects.
Except for the financing of the
July interests and dividend disburse.
ments, which will be largely a book
keeping matter, the mid.year settle,
ments at the banks have been COM
pleted. There was practically no
squeeze in the money market and
call loan rates have not gone above
S per cent since the crash in the
stock market in the last week of
May, due, in some measure, to the
squeezing out of $232 900 900 of bank
credit from the brokers' loans &C.
count in that period of liquidation.
1t is never safe 20 trust a buoy.
ant uprising in prices OF a selected
group of favorite Stocks in the
midsummer, after the doldrums
have apparently set in. 1t snacks
Of manipulation and professional
rigging" OF the market for the
express purpose Of distributing
stocks to the public. Such an ad-
vance was staged this week. after
the market had thrown off all APP
pearance of maintaining its lively
pace through the hot months. Wall
Street heard that most of the big
traders had departed for their play.
ground haunts, folding their tents
and departing f. without the usual
beating Of the tocsin.
Favorable Developments
There were many favorable de-
velopments from the bullish stand.
point. First in importance was the
easing up of both call and time
money, with plenty Of funds of.
fered in all markets. The repara-
tions settlement, the elimination of
the debenture plan from the farm
relief bill, the better outlook for
oil conservation as reflected in the
deliberations of the Presidents spe.
cial conference at Colorado Springs.
the continued high operations of
the steel industry, with increased
buying of railroad and automobile
steel: the healthy condition of
American business generally, all
contributed TO the better feeling in
stock market circles. finally ent;c-
ing many traders who have been
out.
The new gains in utility stock
prices ranged from to 20 points.
American Waterworks was the fast.
est ground-gainer. with a new rise
to 40. North American sold up
about IL points. at 100; Standard
Gas, IL points, at 110: Peoples Gas
10 points; Consolidated Gas 5. and
Columbia Gas 4.
Rosy surveys of the steel industry
stimulated brisk buying demand for
the steel stocks near the weekend.
Large gains in manufacturins
profits are predicted for the steel
corporations this year, and the in
dustry as a whole is expected to
show the most profitable year of
the postwar period.
United States Steel, Bethlehem.
Vanadium and Youngs-
town were the leaders in the aggres.
siVe weekend advance in steel stock
prices. Anaconda led the coppers.
Atlantic Refining the oils and New
Haven the rails.
Little Interest
Wall Street reports indicated that
as yet the outside public has taken
comparatively little interest in the
stock market. The bears have been
forced to cover their shorts and the
pools. have been laying the ground
work for a stronger market later
in the year. 1t is anybody's guess
how far the forward move in utility
stock prices will continue, but the
market has the benefit of substan.
tial and stable business and finan-
cial conditions and a strong tech.
nical position.