Evening star., 1932-05-16
STOCKS IN RALLY
AS MARKET CLOSES
Many Losses Earlier in Day
Wiped Out During
Last Hour.
BY GEORGE T. HUGHES.

Specis. Dispatch to The Star.
NEW YORK, May 16.-A brisk rally
on the stock exchange in the last hour
today wiped out most of the losses
suffered between the opening and mid
afternoon and many shares closed from
fractions to points higher on the day.
Transactions increased as prices re-
covered. The rails, weakest in the FORE
noon trading, we're the last group 10
reverse their trend.
The movement to hurry the passage
or the tax bill at Washington, the ti,l
Pont dividend declared, which was bet
ter than anticipated, and the improve
ment IN cotton, coffee, grains. silver
and rubber all helped stocks to recover
aIter all three averages, for rails, in
ouStrlals and utilities. had pushed
through previous low levels.
Increased activity reported bv Otis
steel Co., putting open hearth opera
tlons to the best rate of the wear for
tnat company as a result of orders for
sneets and hat strips from the auto
motive industry, was the signal for
Improvement in many of the steel
SnareS. U. S. Steel common was up
more than point and the preferred
registered an even greater gain Beth
Iehem Steel and National Steel firmed
up. American Can and Continental
Can, both OF which earlier made new
doWs, Joined in the recovery.
Ihe revolution in Japan added an
otner disturbing influence to the al
ready long list of domestic and inter-
national troubles that are weighing
down on security markets. The direct
enect OF the outbreak in Toxic was A
decline Of 4 points in japanese bonds
ana sharp break in japanese ex-
change. Indirectly it affected the
nerves OF American investors, now in
a super-sensitive state, and produced
further liquidation and new low prices
In nearly all Of the important stocks
and groups of stocks.
The fact that there had been no i'm
provement In domestic conditions over
the week end and that a solution of
the budget situation appeared to be no
nearer depressed Wall Street, which
nao become more bearish over the
ialIure OF the market last week to fol-
low through the rally of May s. Pres
sure was strongest against the already
heavily debated railroad shares. In
this list the largest declines were in
Union Pacific and in Atchison Common
Many OF the other rails dropped be-
low l0-cent-on-the-do dollar market VAL
uation. Anticipated decreases of more
tnan recent size in car loadinQs this
week, and the statement of A member
OF the Senate, in a letter to a core
spondent, that he saw little value in
rallroad common stocks, undoubtedly
hastened some of the offerings
Inc railroad list. however. was M
weaker comparatively than industrials
or public utilities. In the former eroun
only few of the key stocks held above
previous low prices. Among those that
entered a new price area were Amer
lean Can, Eastman Kodak, International
Business Machines, General Foods. Ma
tonal Dairy Products, Woolworth.
United States Steel common, du Pont'
american Tobacco, u S. Industrial Al
conol, and r. H. Macy. Declines in this
list ranged from a point to az points
AHectlng investment sentiment was an
other sizable decline in American TeIe-
phone IL Telegraph on the eve of the
regular quarterly dividend meeting.