Evening star., 1932-02-01
STOCKS ARE FIRM
|. ON RAIL WAGE CU1
Strength in List Follows
Agreement at Chicago-Car'-
rier Shares Featured.
BY GEORGE t. HUGHES.

Special Dispatch to The star.
NEW YORK, February 1.-Quiet
strength characterized today's stock
market, strength we'll distributed be-
tween rails and industrials.
The important news over the week
end was, of course, the railway wage
agreement and the dispatches from the
Far East. Removing as it did one OF
the great uncertainties which has held
the market back, the wage decision was
constructive influence to which the
railway stocks responded and Wnlch
helped the rest of the list.
With regard to the Sino-JapaneSe
crisis, the Street was uncertain wnat
view to take A majority leaned to the
opinion that the troubles In Shanghal
and Manchuria would not be an mn
portant factor in the market. wall
Street seemed to think that the hos
tilities would not spread to involve
other nations.
Profit Taking.
Stocks opened higher all around, but
when the overnight orders mad oeen
executed, realizing appeared and ABOUT
half the gain was lost. Then the llSG
hardened again and registered gradual
advance which was all the more en-
couraging because it was so delloerate.
Probably short covering played large
part particularly in such stocks as U,
S. Steel, Du Pont and American Iele-
phone Contracts for the decline are
outstanding in all OF these issues IN
large volume for these times and as
the day went on the shorts shoWeo H.
creasing nervousness.
1t was pointed out that the saving In
buying of steel by the carriers. Pros
pect Of repeal of the recapture clause OF
the Interstate Commerce act would
likewise work to the advantage OF U. 8
Steel which owns railroad properties
affected by the recapture provision.
The situation in Du POnt was equally
interesting. This stock had been heaV-
ily sold on the theory that cut in the
General Motors dividend would Serl-
ously affect it. American Telephone
had been in such persistent supply all
of last week that it, too, had attracted
weak short following, and in this
case, also, covering went on today.
BY midday the whole market was ac-
tive and strong at the best OF the re-
covery Auburn Auto was up over 8
points at this stage, United States Steel
was selling almost points higher, Gen
eral Electric recrOsSed 20 in volume and
Allied Chemical was up 3 points. Ac-
tive speculation for the rise appeared
in United Aircraft for the same reasons
that inspired the buying in Dupont.
The market had one piece of favor
able dividend news in the declaration
by Standard Oil of New Jersey Of the
usual extra of 25 cents share, besides
the regular quarterly disbursement Of the
same amount. The continuation Of the
extras had been questioned in view OF
the earnings status Of the oil COM
panies.
Opening Prices Higher.
Prices opened higher. Initial gains
ranged from fractions to more than
points.
The rails made the most uniform
showing on the upside, but steelS
chemicals, aircraft issues and Specialties
also advanced. United States Steel il
a block of 1900 shares opened at 80
up l5s, and American Can at SOS anc
American Telephone at lib each ap-
peared up l Is.
The settlement of the railway wage
situation at Chicago was responsible foI
the buying movement in rails, which
lifted Union Pacific up 3l4 to 1914
Baltimore G. Ohio at l9 rose IL fol-
lowing President Wizards announce
ment that effective this week approxi-
mately 1900 men would be added tC
the mechanical pay roll. Chesapeake &
Ohio gained 1as to 2734. Missouri Pa
cifc common was up 4 at 97s and the
preferred gained 22s. New York Cen
tral at 31l4 was up 29s and Pennsyl-
vania, which was eX-dividend today, ap-
peared at %, up l y. Southern Pacific
advanced to "a. Southern Railway
rose rs to 1ll2.
Du Pont at 81 climbed Y. The
Standard Oils were active in early deal
ings. Standard of California was of
slightly at 225s, but Socony Vacuum al
9 and Standard Of New Jersey at 25l.
were unchanged. Directors of these
companies meet today for dividend &C.
ton. General Motors advanced frac'
tionally 70 20l2. National Cash Regis.
ter lost shade at 11A. General Elec'
trio at 1875 rose Is and United Aircraft
at 1872 gained Is.