Evening star., 1932-08-31
LATE STOCK RALLY
IS LED BY RAILS
Market Receivers Much of
Early Loss in Final
Dealings.
BY CHARLES F. sPEARE.

Special Dispatch to The Star.
NEW YORK, August 31.-Railroad
shares rallied the stock market today
when at one time it appeared to be
headed toward substantial decline.
The leader was Lackawanna, whose
net advance in the closing hour
amounted to over 6 points. There
were gains Of points and more in
standard rails, like Atlantic Coast Line
and Louisville & Nashville. with q
smaller gain in New York Central
Rumors regarding the basis Of ex-
change on which New York Central
might secure complete control of the
Lackawanna under the four-party con-
solidation plan. which was being dis
cussed this afternoon, we're responsible
1or the unusual buying movement,
Lackawanna has gone from the low of
about 50 share to above $42.
The rebound in the rails checked a
reaction that had gained considerable
momentum in the rest of the list and
was qulckened by pressure from pro-
iesSlonal interests, who saw an oppor-
tunlty to unsettle market that had
oeen unresuained on the upside for
weeks and in which there were manv
stcp-loss orders. The general decline
in commodities and in speculative bonds
gave excuse for the pressure on shares
The market held most of its afternoon
recovery up to the closing. An unusual
feature was that about the same degree
OF activity took place when prices were
rapidly falling at midday as when they
were recovering late in the afternoon
The groups Of industrials, public util-
tiles and rails that had been under
the sponsorship Of pools had a fatigued
appearance in the forenoon. There
was Willingness to sell stocks on eyery
rally: The approach of the Labor day
holiday may have had its influence in
restricting operations and In reducing
the enthusiasm Of the street. More
probable as factor was the fact that
the market has now reached a Level
where an increasing number of its
clients are disposed to stand aside until
tnere Is more positive evidence of a
response by business to the exceptional
gains that have occurred in all classes
OF securities in the past two months.
The effect of Indifferent commodity
markets on securities was an important
one, as stocks have been moving in
sympathy with the recent spectacular
advances in cotton, rubber, silk and
cocoa, and modified gains in several
OF the metals. In commodities, as In
securities, the change has been so pro-
AOhAANC0 bAAdb q COASlucIdple dInOunL
OF realizing of profits was to be ex-
pected.
The sudden change in the direc-
ton of the market just before the close
on Tuesday, after it had appeared to
be starting out on another strong ad-
vance, tempered bullish sentiment to-
day. When the market acted in O
similar manner this morning, and after
fair degree Of strength suddenly be-
came weak, with volume increasing on
the decline, there was heavy selling and
quite sharp reaction under the execu-
tion of stop-loss orders. Previously
there had been exceptional strength
shown by the hard-coal railroad stocks,
with Lackawanna up 3I5 points and
over 30 points above its low figure, and
Lenigh Valley showing gain of
points at the best of the year. The
motors did not carry through along
the lines indicated Tuesday.