Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-12-06
STOCKS CONTINUE
RALLY TO CLOSE
List Resumes Upward March
After SOftening in Early
Afternoon.
BY GEORGE T. HUGHES.

SpeClaI DISPATCH 10 i ne GUAR.
NEW YORK, December 6.-Stocks
staged robust rally today. The mar
!let opened higher. advanced moderately
during the morning, softened in the
early afternoon and then went forward
with rush in the last hour.
There was no news adequate to ac-
count for the strength, which appeared
to be based more on the lack of offer
ings than on any change in the bust
ness or financial outlook. In other
words, the short interest discovered
that stocks were In Scant supply and
when they started to retire their con-
tracts they bid up prices on themselves
1t is true that the hope was expressed
OF constructive action by Congress on
the many controversial subjects before
1t, but there was no definite informa-
ton to bear it out.
Commodities Weak
The railroad stocks were the backbone
Of the market and led the recovery.
Norfolk g. Western. Louisville & Nash-
vile, Atlantic Coast Line, Union Pacific
and a long list of others were in active
demand. American Telephone g. Tele-
graph was up between and 5 points
at the end.
There was no strength in commod-
tiles. Wheat left off fractionally down
on the day and cotton was little
changed. Hides and silver were the
only two staples to make any sizeable
gains. Sterling exchange in midafter-
noon was up quarter OF cent on the
day.
The market seemed to have recovered
quickly from its disappointment over
the failure of the prohibition repeal
measure in the House-either that or
it was satisfied that resubmission was
certain eventually. Perhaps, too, it may
have concluded that the whole subject
had been given undue Importance
marketWiSe. At any rate, the list OPEN
ed higher all along the line.
The one exception was Safeway Stores
That stock has been under pressure for
some time. but today it was acutely
weak. Under heavy selling it dropped
over points, leading to reports that
the present dividend of IS annually was
to be cut to So.
Rail Issues Lead.
The break in Safeway had no effect
on the rest of the market, which. how
ever, had one unfavorable dividend an
nouncement to absorb. American
Power g. Light cut in two the dividends
on its Sc and its SIS preferred stocks
On the former a quarterly payment of
IS cents a share was ordered and on
the latter one of 62ls cents a share.
The regular rate quarterly was S15O
on the Sc issue and SIPS on the IS
stock. Dividends are cumulative. The
market had expected reduction of
some kind and the action of the di-
rectors had been we'll discounted.
Railroad stocks were the leaders in
the early upturn. Union Pacific was
strong on the announcement that it
had acquired large block of Pennsyl-
vania, presumably on the theory that
any road well fixed enough to buy
shares in another road must be worth
buying into. Pennsylvania stock itself
was little changed. Atchison ran I'D
over points and gains of a point or
more were registered in Chesapeake &
Ohio, Lackawanna ard New York Cen
trail.
Short Interest Nervous
United States Steel preferred worked
higher in an erratic market At one
time there were fluctuations of more
than point between sales, suggesting
a large and nervous short interest. The
common was higher, as much as 2
points at one time. American Telephone
81 Telegraph crossed los, up nearly 3
points net. and there was active cover !
ing in Allied Chemical, American Can
and Westinghouse Electric.
Mack Truck declared the regular |
dividend of IS cents a share on its |
capital stock Central Aguirre Asso- |
ciates also declared the regular on its |
shares. Associated Oil ordered a pay
ment Of 25 cents a share, the same as
in the three preceding quarters.
Sterling exchange was relatively quiet. !
The opening here was at $1,000, up "a
from last nights close. Francs dipped |
again, almost to the point where gold |
can move from Paris to New York !
Montreal funds rallied slightly to |
l47s per cent discount basis.
Business fell of in the afternoon and