Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-06
ISTOCKS IN RALLY
| ON ACTIVE TRADING
Hoover Conference Arouses
Hope for Improvement in
Business Conditions.
BY GEORGE T. HUGHES.

Special Dispatch to The STAR
NEW YORK, October 6.-Aided by
the announcement from Washington
that President Hoover, in cooperation
with banking leaders and with the sup
port of representatives Of both politi-
cal parties, was working on a plan for
restoring confidence in the economic
situation, the stock market today staged
vigorous rally after Mondays sweep
ing declines.
The list opened higher and with only
minor reactions advanced throughout
the morning. Some of the gains in
stocks that had been heavily sold were
quite large. United States Steel ran up
points in the first two hours Amer
lean Can gained almost as much,
American Telephone came back and
there was rapid recovery in the prin-
cipal railroad shares. including Atchi-
son. up over z points; Union Pacific,
Baltimore & Ohio and others.
Prices opened generally higher as a
result of the belief that something con-
structive may come out of the con-
ference at Washington tonight.
American Telephone opened up y
point at 122. General Motors at 22A
was off "a. Borden, whose directors
meet for dividend action today, opened
up "a at 1874. j. I. Case at 3612 rose
27s. Standard Oil of New Jersey in
an 8.500-share block opened at 2834,
off Il.
Public Service of New Jersey was up
% at 527s. Consolidated Gas opened
up point at 6214. Anaconda Copper
at 1924 lost fraction and hit a new
low for the year. Coca Cola gained
IA points at 102. Radio was up frac-
tionally at II.
The rails were irregular, Great
Northern at 20ls being off u and at
new minimum for the year. A block
of 1000 shares of United States Steel
opened at 1910 o'clock at 81, being up
IA points Chesapeake & Ohio at 23i2
dropped Il. Pennsylvania rose frac-
tionally to 80. Union Pacific was up
pa at 100.
Trading Volume Heavy.
The pace slackened a little toward
the end of the first hour and a few
stocks that had enjoyed the swiftest
upturns were off from their best prices
for a time. This check in the advance,
however, was overwhelmed with a new
supply of bids American Can, after
opening up points at II, dropped back
to 74l2. Dupont, which was at one
time as high as ST sagged back to SAL
Coca Cola dropped from 1882 to 1Ol -
The volume of trading in some in
veStment favoriteS was very heavy.
General Motors came out in a string
of large block sales and was nearly
point above its previous close. Au-
burn advanced ~ points to 80. Dur
ing the first half hour, trading amount
ed to 100000 shares, compared with
10000 in the same period Monday.
Call money renewed at / x per cent.
new stock exchange ruling COM
pelling sellers of stocks to notify brok-
ers whether such orders were for long
or short account emphasized the deter
mlnation OF the governors to keep q
close watch on operations for the de-
cline. AS matter Of fact, it Is doubt
full whether there was much. If any
short selling on Monday The break in
the market then was plainly the result
OF forced liquidation for both home and
foreign accounts. However, it was made
very plain that short selling was in
disfavor fEom now on.
Shorts Cover.
Acting on this theory, covering went
on briskly throughout the list.
There was also buying by investors
who had been waiting some kind of turn
oefcre entering the market and who
seemed to think that unless they acted
soon they would lose their chance. In
any event the recovery was the most
pronounced since that of last June
when the President published his in.
ternational debt moratorium plan.