Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-06-08
RECOVERY IN STOCK
MARKET RESUMES.
Brisk Upturn in Prices 0c-
ours in Late Trading.
Rails Improve.
BY GEORGE T. HUGHES.
Special Dispatch to The Star.

special DlSp9tcn TO Inc PIdr,
NEW YORK, June 8.-Complete
change from the soft and sluggish
character of the early stock market took
place in afternoon trading today.
Prices then were fairly buoyant and net
advances we're as numerous and as
large as were net losses before midday.
The change in sentiment may have
come from the clearing up of an acute
banking situation in Chicago. which
undoubtedly led to some of the liqul-
dation on Saturday. 1t is also possible
that the ScantineSS of the offerings
early in the session, in spite OF the
extreme heavineSs of the rail list at
that time. was another of the evidences
of completed liquidation which made
their impression on Wall Street.
During the first hour the five most
active railroad stocks showed an aver
age loss of 81 points, with the maxi
mum decline in New York Central on
the possibility of another reduction in
it's dividend rate Wednesday. However,
before the market closed New York
Central had sold ~ points above Sat
urdays closing, and there were net
gains in Pennsylvania and Atchison,
with Union Pacific 81 points above its
low.
Unquestionably the decline on Sat
urday discouraged many holders OF
stocks who had found relief in the
midweek rally. The market was also
faced with perpleXing situations such
as that surrounding German repara-
tions and by an unexpected develop
ment in the Chicago banking world
where a crisis arose over the week end
but that has been satisfactorily ad-
iusted.
1t is not clear from the reports from
the London conference how far Ger
many is likely to go in protecting her
internal conditions. So long as her
affairs occupy the attention fixed on
them by the rest of the world today, 1t
Is obvious that holders of German Sc
curtieS will have much anxiety and
that this will be a depressing factor on
other European securities as well as on
the speculative markets abroad. Ger
man bonds today were lower.
The extreme weakness Of railroad
stocks might have been connected with
the fear that a second reduction in
the dividend rate on N Y. Central may
be ordered when the directors of the
company meet Wednesday. In the
March quarter the road did not cover
its fixed charges but has done some
what better in the last two months
However. 1t has not been able 10 earn
the required proportion Of the present
Sc dividend in the June quarter. A very
considerable amount Of the decline in
railroad stocks this year dates from the
announcement in March that Central's
rate had been cut from SO to SIS a share.
Since then about a dozen other carriers
have found it necessary either to omit
dividends or pay them on a scale more
in line with current earnings.
without much increase in volume,
the market took on decidedly stronger
tone in the early afternoon. The best
recoveries were in the rails. New York
Central advanced above Saturdays
closing. Prominent industrials like
Westinghouse Electric. General Electric,
American Can, Johns Manville, National
Dairy Products and Worthington Pump
were all higher than at the end Of the
previous session, with net gains ranging
from to points. Allied chemical ad-
vanced 5i2 points. United States Steel
went fractionally above Saturdays
closing The oils manifested the same
resistance as during the latter half of
last week. Motor stocks were stronger,
with General Motors touching 35.
Operations were chiefly for the profess
sional short account.