The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-07-26
u. 5. STEEL IN
SPOTLIGHT OF
STOCK BOOM
Action on Payment of Divi-
dendS on Preferred
Shares Awaited.
HINT ON EARLY UPTURN
Omission Would Indicate No
Business Gain Soon Is
Seen by Officials.
BY United Press

thrilled by the most sustained
boom market on Wall Street since
last October, looked forward today
to the United States Steel corpora
TONS action on its preferred stock
dividend, which never has been
omitted.
Decision of the directors on the
dividend was to be announced after
the close of the stock market.
Omission of the dividend would
indicate the worlds largest indus
trial corporation expects no early
business upturn.
The New York Stock Exchange
today was the scene of Crucial
battle to determine whether the
boom" market of the last We days
would succumb to the prot-taking
of professional operators, or con-
tinue upward under the push of
general public buying.
Battle Lines Taut
At noon, the battle lines were
taut after a furious opening in
Spired by an overnight accumula-
ton of buying orders.
The anticipated prot taking wiped
out many gains, but the market
held firm in resisting demoralizing
professional selling.
The entire market participated in
Mondays rise or rally. Many pre-
ferred stocks, considered safer as in
vestments, rose to points. Com
mon stocks were fractions to 3
points higher. There were few de-
clines.
Bank stocks gained as much as 40
points in the case of First National.
whose bid price was $1,000.
Rise Is Sensational
The rise was the most sensational
since the present advance started on
July 8, a Saturday.
The market on July 8 had touched
a low for the year.
Mondays prices were about Is Der
cent higher, the highest gain on
percentage basis since the Oct. s.
Nov. 9 rise of about 30 per cent.
Other rallies" since last October
included that after the Glass Stea-
gall bill was proposed last February,
20 per cent; the rally after forma-
ton OF the Reconstruction Finance
Corporation in January amounting
to "a per cent; a Is per cent rally in
December. The moratorium year
ago brought temporary 30 per cent
rise.
After each rally there was a re-
action that dropped prices on many
stocks even lower than they had
been.
Commodity Prices Gain
One who seeks reasons for the re-
cent sustained rise may find many
events which may fill his needs.
They include:
Increases in commodity prices.
which in comparison with recent
lows may be termed sensational.
The increase includes chiefly the
prices paid for the country's agri-
cultural products.
Scattered, but numerous reports
from all over the country of fac
tories resuming operations, or
speeding up a bit after long layoffs,
or operation with skeleton crews.
Some of these doubtless follow sum-
mer inventories" when many plants
take advantage of slack business to
complete what they are pleased to
call inventories.
Reports that the Reconstruction
Finance Corporation is functioning
more effectively.
Indications of more liberal issues
OF currency, the result of the Glass
Borah act which permits national
banks to issue notes with govern
ment bonds instead of gold as Sc
curity.
Expect UnfavorabIe Report
The approved railroad merger
plans calling for consolidation of
most eastern roads into four lines,
eliminating much duplication of
costs, but also eliminating many
workmen, which would result later
in an adverse reaction.
Ease with which government
loans, either in bonds or in short
term notes, have been foated with
in recent weeks, refuting the theory
advanced by some that recitation"
policies would result in "lack of con-
f1dence" in all securities.
AS for the United States Steel
dividend, it probably will be paid out
of the huge surplus of the corpora
ton, if not ordered omitted.
The common stock now is on a
non-dividend basis. And the Sec
ond quarter report to be issued to-
day probably will be the most I'M
favorable ever issued by the corp
grafton.