Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-08-11
STOCK PRICES TURN
HIGHER SUDDENLY
Abrupt Reversal of Trend
Marked by 8 to 10 Point
Gains for Best Issues.
BIZ GEORGE +. HUGHES.

special Dispatch 70 The star.
NEW YORK, August 11.--Stagt1g an
abrupt reversal of form similar to that
witnessed in the first week of June,
today's stock market advanced buoy
sntly. The gains in the high-priced
issues ran to and 10 points.
The early hours saw further selling
of the rails but this time the indus
trials held UP. BY noon the industrials
were creeping forward. in the early aft
ernoon they turned strong and in the
last hour. under combination of short
covering and new buying. they went
ahead at what was for this market a
sensational rate.
Auburn Auto was up at one time
over IL points and Allied Chemical over
S points Eastman Kodak jumped
points. United States Steel, touching
90, was only 3 points under the price
at which it closed the day before the
dividend was cut. Railroad stocks
came back, with Atchison up or Z
points and others in proportion. Just
before the end there was partial set
back under realizing.
Various explanations were offered for
the recovery. One was that the trade
reviews tomorrow would show Steel
operations higher. Another was that
railroad car losdings had gained on the
week, as the statement would show,
Still others related to prospects of a
modification of the Volstead act. The
truth Of the matter, however, was that
the market had been saturated with
gloom, was no longer able to hold any
more, and, as all speculative markets
do, turned suddenly just when it wss
least expected.
During the first hour there was fur
ther selling of the railway shares and
new lows for the bear market were
reached by New Haven, Illinois Central
and Union Pacific. The talk TODAY was
of downward revision of New Ravens
dividend rate from IS to 81 or $3.50
annually. The board will not meet
until September 8. although the regular
dividend session had been set for the
fourth Tuesday in August.
Despite its drastic def1ation. Illinois
Central still sells on one of the highest
appraisals OF current earning power of
any railroad stock on the list. Union
Pacific was in supply because OF its
large holdings of stocks of other roads
Atchison made a new low on the move
ment and Great Northern preferred
duplicated its old low, with Pennsyl-
vania only fraction above the low.
Notwithstanding this show Of weak
ness in the rails, the industrials held
firm. 1t is becoming more evident
daily that the railroad stocks are no
longer the bellwether of the market.
The railroad situation is thing by
itself, separate and aside from the de-
preston elsewhere. and not much can
be looked for from railroad stocks until
there is a good-siged rally in railway
bonds. AS to the rate inquiry in Wash
tngton, there is no unanifnity of opin-
ion on the effect of favorable action by
the Interstate Commerce Commission.
and favorable action is much in doubt.
Standard stocks. including American
Telephone. Consolidated Gas. United
States Steel and American Can. sold
at or above the previous close Proba-
bilities are that liquidation in this part
OF the list, of any Importance, at least,
has been completed. Meanwhile the
bear faction is ultra-csutiolls There
has bsen much less short selling during
this reaction than at any time on any
Tor downward turn in months.
Declaration of its quarterly dividend
in stock instead of in cash by Para
mount Publix was without effect mar
ket-wise. The placing of General
Asphalt shares on 50 annual dividend
basis, instead Of SO previously paid.
had also been discounted in the price
Of the stock. Two important meetings
this week are those of Eastman Kodak
tomorrow and Union Pacific on Thurs
day. The best information is that
there will be no change in either of
these rates.
Commodity price news was not as
disturbing as on Monday. In fact, the
steadiness in wheat after the Govern
ment's crop report was distinctly re-
assuring. An increase in crude oil out
put was Offset by the urgent demand
for gasoline reported from the Middle
West,