Evening star., 1932-01-22
STOCKS ARE FIRM
AS RAILS ADVANCE
Carrier Shares Prove Feat
ure on Upside-Trading
Remains Light.
BY GEORGE T. HUGHES.

Special Dispatch to The Star.
NEW YORK, January 22.-Strength
in the railway shares rescued the STOCK
market today from a threatened re-
versaI of the trend. 1ndustrlals were
irregular for a time, but eventually
they hardened in sympathy with the
rails.
Speculation in stocks was governed
almost entirely by the outlook for the
wage negotiations between the railway
executives and the brothershoods at
Chicago. AS to the outcome, optimism
was in evidence directly from the start.
Initial declines in the general list were
not shared by the rails. and after the
overnight orders were out of the way
the carrier issues began steady up
ward march.
Rails Actively Bought.
The leader was the preferred stock
of Missouri Pacific. in which strong
group was evidently at work. ESu-
mated earnings on the preferred lot
the calendar year 1881 run over S3
share but it was not earnings that were
responsible for today'S advance. Aside
from the improvement in the status OF
the railroads generally. the chances are
that a stale short interest was un-
covered in the Missouri Pacific senior
issue Other railway shares actively
bought included AtchiSOn, Union PacitlC
Northern Pacific and New Haven
Short covering also came into ILLINOIS
Central
For a time General Motors was under
pressure and the stock broke through
the % mark. Directors are scheduled
to meet for dividend action on February
3 but the stock has discounted some
reduction in the rate and there IS
possibility that there may be no cut at
ali The selling looked much like that
directed against General Electric earlier
In the week. 1t was interesting pc
cause Of the light it threw on the
changed character of the trading.
A month. ago it was easy to attract
q following from Spectators Tor the
decline on any show Of weakness IN
an important stock. Generally such
weakness unsettled the whole market,
but nothing of that kind happened to-
dav in the case of General Motors, or
for that matter to any great extent in
the case of General Electric two or
three days ago. Experienced observers
drew the conclusion that the line OF
least resistance at present for the mar
ket as a whole was on the side OF ad-
vance
TIE market paid little attention to
the Federal Reserve statement mace
public overnight. 1t is believed that
reduction in the discount rate will come
sooner or later and no disappointment
was expressed at the fact no change
was made Thursday. Foreign exchange
quotations early in the day showed the
dollar appreciation in terms of sterling
and francs.
Opening Prices Mixed.
Opening prices displayed a mixed
tendency. The rails for the most part,
however, were higher.
The uuietness of early London deal
ings and the l "a cent decline in sterling
here may have had some influence In
early transactions.
United States Steel, at 453t was on
"A. American Can, at So, and Westlng-
house, at 27l2, each declined ,12, out
General Electric, at %, was unchanged.
Atchison at 913s, Baltimore & Ohio at
2O55 New York Central at 34A and
Southern Pacific at 36l2 were fraction
ally higher. Small gains also were re-
corded by Chesapeake Corporation at
20, Missouri Pacific common and pre-
ferred at 1925 and 2234 respectively
and Northern Pacific at 22h
Freeport Texas opened at 1873. on
"a, in response to the reduction OF the
dividend from SO to So year. Amerl-
can Telephone in block Of 1000 shares
opened at 12O1@, off 3s as was du eonI
at IS. North American, at 34A, ana
Pacific Lighting, at 37&, loSt a.
American Foreign Power rose u to ga
STANDARD Oil of California at 25B
Texas Corporation at 12&s, Alaska
Juneau at 1873 and International Nickel
at ga were all fractionally lower.