Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-08-27
Brokers' Comment

NEW YORK, August 27.-Stock Ex-
change commission house advices today
indicated q fairly widespread opinion
that yesterdays technical rally in the
market may carry somewhat farther,
although 1t is felt that the market will
require some constructive news not now
In sight to break out of its trading
range of recent weeks. Comments fol-
low:
E. r. Hutton & Co.-Despite the
change Of government, the London
market Is hesitant. The Laborites seem
certain to Strenuously oppose the new
nationalist government, and 1t is not
yet clear that their strength can be
overcome. Secondly, the British fear
taxation measures. Unless our own pic
ture changes materially, we viii have
to undergo q period of fears of in
creased debt or taxation. In addition,
IL is probable that the coming Congress
viii not provide pleasant news back
ground for the Winter stock market.
Shields & Co.-Efforts to attract fol-
lowing in the utilities because they
have acted best" is not achieving
much success due to expectations that
revision Of electric light and power
rates is not far on. The utilities viii
be In q rather vulnerable position when
initiative and voluntarily adjust charges
to the lower prices in other industries.
Morris a. Townsend-There is an in
teresting situation in Great Northern
preferred. The reason for the decline
in earnings is that United States Steel
Corporation is not buying iron ore, that
lumber Is not being sold and that
grain prices are SO low that the pur-
chasing power of the farmer Is below
normal Car loadings In ore. forest
products and grain are on approx
mately one-half. while the loadings in
goods handled by trucks are only of
a nominal percentage. Therefore, 1t is
apparent that with any return to pros
perity Great Northern viii improve its
position very rapidly.
Paine Weber g. Co-wednesday's
advance, which amounted to just about
point per share on typical industrial
issues, was within technical proper
lions, following, as it did. four days
of continued decline and bringing av-'
erages back less than half Of maximum
drop since August Is rally top. The
current minor upturn could carry some
what further without necessarily indi-
eating a reversal Of downswing which
began middle of August.
Charles d. Barney g. Co.-The pres
ent situation may well prove TO be one
Of those periods where technical and
fundamental factors working against
each other keep the market in horl-
zontal trading range for number OF
months. In any event, until the mar
ket actually breaks out OF its present
groove we feel that the active trader
Is justified in trying for quick turns
within the trading range.
jackson BIOS, Boesel & Goa
month of steady prices, in other words,
supports the idea that bearish and bull
ish forces are Just about equally
matched. A sold-out condition, coupled
with a stable short interest, suggests
that sharp rally is probable In the
near future provided some constructive
stop-loss orders on speculative long
commitments should be continued, how
ever.
Redmond & Co.-Recent liquidation
OF railroad stocks and bonds apparently
reflects waning hopes of investors for
any material relief to the railroads this
year from any decision Of the Inter-
state Commerce Commission on the ap-
plication for q is per cent increase In
rates. Dow Jones states that decline
in gross revenues suffered in the first
seven months and probable lack of any
pickup in concluding months tndi-
Gates Pere Marquette may fail to cover
interest requirements on its bonds this
year, pointing out, however. that In
view Of the strong backing Of the road
there is little likelihood of q default In
bond interest payments or inability 70
meet comparatively small maturity
coming due in 1882.