Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-16
RAILS LEAD RALLY
IN STOCK MARKET
InduStriaIS Also Share in I'm.
provement, Which Starts
in Early Trading.
BY GEORGE T. HUGHES.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, october 16.-Still buoyed
up by the hope OF Washington assist
ance to the railroads, the stock market
today staged another rally The rails
were the principal beneficiaries, but
! more or less the industrials recovered
also.
At the opening the market was con-
fronted with the increase in the redis-
! count rate to 3 y per cent, announced
by the New York Federal Reserve Bank
after the close Thursday. Such action
had been generally anticipated, and its
, influence on the stock list was negli-
gible. although, Of course, 1t was an i'm
portant factor in the bond market.
In accord with the new situation
call money renewed at 212 per cent
the highest rate in months There
was considerable calling OF loans dur
ing the morning and 1t looked as
though the rate might go higher before
the session was over. Time money was
quoted at per cent bid for all ma
turtles and prime bankers acceptances
were quoted at the highest rates OF the
year.
The advance in the rails included
all the active issues and put some OF
them to new highs on this recovery
The gains ran as high as and 6 points
in the higher priced shares. The story,
as Wall Street heard it today. was that
not only would there be some rate re-
lief. but that the administration had
plan to rescue the railroad bond
market from its present state OF near
collapse and, furthermore, that there
was a possibility OF the railroad brother
hoods accepting voluntarily q reduc-
ton in wages.
Opening prices were Irregular. Wall
Street was divided in its interpreta-
ton of the further advance of l per
cent in the rediScount rate, but was
inclined to construe bearishly the drop
of $73 900 900 in brokers loans. There
was tendency 10 look hopefully on
overnight developments in the Sino-
Japanese situation. This gave frmer
tone to the list.
United States Steel opened unchanged
at $685. Active industrialS such as Air
Reduction. Allied Chemical, j. I. Case,
Eastman Kodak, Radio Keith, Westing-
house and Bordens were higher. There
were small losses in American Can, A.
NJ Byers. General Electric, Johns Man
Vile and General Foods.
Most rail shares were lower. among
them Baltimore {, Ohio. Canadian Pa
cific. Chesapeake 81 Ohio and New York
Central. AtchiSon and Union Pacific,
however, b~th scored opening gains.
The utilities were little changed. Ameri-
can Telephone advanced a shade TO
1924 and Public Service of New Jer-
Sey was off 2 at 60l4. Motor stocks
were undecided. General Motors opened
on 5,000-share block at 2434. but both
Auburn and Chrysler were higher Oils
were quiet. Standard Oil of New Jersey
was higher at 3l7s.
The market. after its hesitant open
ing. turned upward, and after the first
| hour was generally higher on the day
Call money renewed at 2 ? per cent, the
highest renewal rate since December 90
1880. During the first half hour trading
amounted to 200, 900 shares, the same as
on Thursday.
United States Steel at 67l4 was al
most p point higher after the first hall
hour, but other active industrials were
from to points higher. The featured
group was that Of the railroads. Active
trading at sharply higher prices oc-
Cured in Union Pacific and Atchison
Both advanced more than 5i2 points.