The Washington times., 1930-05-21
EXPECTED TURN
MAY DEVELOP
RECOVERY
Stock Market Seen Greatest
Potential Influence on
Sentiment of the Public
BY THE SPECTATOR

turn chat came in the last hour
yesterday is popularity supposed
to mark a real, lasting turn of
the trend.
The. recovery was not SurpriS-
ing, for it seemed at noon yester-
day that a rally was due. At
any rate, the list looked as
though it should turn one way
or the other, and a downturn,
from the then existing levels
would have produced something
in the nature of a panic.
Plenty of weak accounts were
wiped out yesterday Snd the
break was not conducive to pub
lie confidence in the SoundneSS
of business conditions. 1t seems
to me that the stock market, at
this time, is the greatest poten-
tial influence on public Sentl-
ment. If the market slips off
much more there is bound to be
more nervousness about funda-
mental business factors. On the
other hand, if the stock market
turns strong, it will be an influ-
ence toward optimism and might
easily result in improved trade
conditions.
Advises Buying
At this writing, 1 have no
hesitation in advising readers TO
buy stocks at the market today.
Lamont Statement
Referring to Secretary Lamont'S
statement that business has re-
covered to a point within per
cent of normal traders remarked
that every time a Government
official expresses an optimistic
opinion, the stock market breaks.
The records of the last few
months prove that such is the
case. One operator claims that
the street construeS such official
expressions of bulliSh sentiment
as artificial attempts to bolster
public confidence.
Many a trader has expressed
the wish that President Hoover
and Secretary Lamont would
keep their bullish sentiments
secret.
Rail Market Forecasts
The far-reaching plans of the
Van-Sweringen brothers have re-
suited in bullish feeling in con.
nection with railroad shares. For
the first time in months, we
hear predictions of a bull market
in rail stocks. One Of the chief
influences is the expectation that
the Senate committee will kill
the Couzens resolution which
would block plans for rail
mergers.
Warner Brothers Pictures
offered good resistance to the
selling pressure that threatened
a drastic break in the stock. 1t
would be difficult to dislodge the
Raskob- DUPONT holdings.
American Tobacco B
Every recovery in the market
brings strength in American To-
bacco issues. l understand 1880
will be the company's best year
for all time. Lucky Strike sales
for the first four months were
1,S26,0O0, 900 greater than in the
same period of 1929. April reg
istered a gain of 262,000,000 over
the same month last year. Cigar
sales of the company's cigar-nan-
ufacturing subsidiary increased
enormously over last year. l re-
peat that "a Split-up of the com
pany'S shares is to be expected
at an early date. and that stock
holders will reap important bene-
fits from such recapitalizatiOn.
Declaration of the regular $1.25
dividend by Hudson Motors was
the most bulliSh news yesterday.
It is practically certain that the
dividend was not earned, but it
was a big help to the motor
group, nevertheless.
Dividend Reductions
Calumet and Hecla cut it's divi-
dend in half, as had been ex-
pected. Similar action may be
anticipated on other copper COM
panies dividends. Gotham Hos
iery passed it's dividend. Scrip
was substituted for cash in the
case of Twin City Rapid Transit.
Dividend omissions and educ
tionS will be announced by many
companies during the next few
weeks. Hudson directors sur
prised the Street when they an
nounced the regular payment.
BeariSh rumors were circulated
in connection with Columbia Gas
and Electric. The gist of the re-
ports was that it will be possible
to buy the stock much cheaper.
Nevertheless, Columbia recovered
as rapidly as any other.
Duquesne Gas
Curb issues, have been going
begging for buyers of late, but 1
am recommending DuqueSne Gas
today as an issue which will make
good profits for its holders over a
comparatively short period. The
stock made a new high yesterday
on fairly heavy turnover. I hear
from usually wellinformed sources
that this one will hit Is before
there is any important setback.
I would buy it at the market.
Several pool operators who have
been idle for the last week are
preparing today to resume opera