Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-03-24
STOCKS IN RALLY
AFTER EARLY DROP
Short Sellers Take in Con-
tracts as Market Turns
Dull.
BY GEORGE t. HUGHES.

Special Dispatch to The Star.
NEW YORK, March 24.--Unsettled in
the early, trading by the developments
in the grain market, stocks today rail-
lied impressively after the overnight
selling had been absorbed. Commit
ments for the decline we're taken in
many issues that had been under pres
sure of late, including this time the
railroad stocks.
The market was undecided as to what
attitude to take toward the collapse in
wheat on Monday and the probability
that lower prices would be seen for ag-
ricultural products generally. Opening
prices were lower all around. and for
an hour or so trading dragged on list
lessly. Then, when 1t was seen no
liquidation was coming out, buying or
ders appeared, and recovery ensued.
= Strength in Rails.
It was not easy to account for the
show of strength in the railway stocks
Additional February earnings statements
coming 10 hand made extremely I'M
favorable comparisons with those of a
year $50. For example, Norfolk &
Western reported net this year of only
81, 387 ,625, against $2,895,098 in Febru-
airy, 1880, and Lehigh Valley had net
this February of $358,196 compared
with $642 444 in the same month of
1880. Car loadings for March for such
roads as reported them showed that the
falling off in traffic was continuing this
month.
Nevertheless, New York Central,
Atchison. Baltimore 81 Ohio, Northern
Pacific and Great Northern were all bid
up. Probably the short interest in the
rails is larger at present than it has
been in years. The Baltimore & Ohio
dividend meeting is scheduled for to-
morrow, at which time the rate is ex-
pected to be reduced from the present
81 basis to IS annually. If, unexpect-
eddy, the cut should not be as large as
predicted, there might be scramble
Of shorts to cover.
Standard Shares Gain.
Among the stocks to rally easily
after the initial unsettlement was Au-
burn Auto, which went to another new
1881 high. This stock is so subject to
manipulation that it is not typical of
the market, but other standard shares
came back as we'll. American Can re-
covered all its frst-hour loss, United
States Steel came back partially and
General Motors did the same. Although
the oils are still in disfavor and Texas
Corporation made a new years low
there was good support for Standard Oil
Of New Jersey.
Another dividend meeting scheduled
for Wednesday is that of Westinghouse
Electric and about this rate there has
been much discussion. Shorts took
alarm today at a widespread report
that there would be no reduction and
Westinghouse rallied with the other in
dustrials. Public utilities recovered a
little more slowly. but they lost the
heavy tone that characterized them at
the start. In fact, the whole market
showed surprising resiliency, everything
considered.
Early Market Lower.
In doubt as to the exact effect of
the break in wheat, the market sold of
in early trading. There was no particu-
lar pressure and no large volume, but
prices sagged almost uniformly.
The largest losses were in the VIOLA
tile Auburn Auto and in Columbian
Carbon, each Of them of about 3 points.
Standard issues lost to points. in
Guiding United States Steel. American
Can and the merchandising shares,
WoolWorth and Sears Roebuck.
Among the issues to resist was West
inghouse Electric, where short cover
ing was plainly going on. Operators