Evening star., 1932-04-10
SUMMONS JOLIS
BEAR TRADERS
Furry to Cover Short Con-
tracts Follows News of
Senate Inquiry.
Continued From First Page.)

'NOlLl1ucQ from f1TSt PaRe.)
daily until further notice, starting with
yesterdays transactions. Since Janu-
ary, brokers had been reporting only
the net changes in short accounts from
day to day
Other information requested includ-
ed copies Of all messages sent over
brokerage wires yesterday While Off
cials OF the exchange declined to COM
ment on this order, considerable signifi-
canoe was seen in it, in connection with
Washington reports of rumors that a
powerful bear raid had been planned
for today.
While brokers were inclined to scof
at the bear raid report, it was pointed
out that the brokerage wire messages
would show if anything had been going
on in the way of irresponsible rumor-
mongering. Wall Street has grown
touchy on the subject of rumors since
a fallacious report of an American bank
suspension vas published in Paris this
week, coincident with bear selling of
the dollar in the foreign exchange mar
kets.
Probe Nicely Timed.
The announcement of the Washing
ton investigation was nicely timed, If
Senators were hopeful of bringing an
interruption to the shrinkage of secur-
ity values, for 1t co-incided with publica-
ton Of bullish Winter wheat crop re-
port, bringing brisk rise in the Chicago
pit, and came at time when Wall Street
was anxiously waiting for some unex-
pected break in the news to bring a
turn. In view of the very duration of
the decline-the market had registered
new lows for eight successive sessions
Wall Street was beginning to feel that
a turn would have to come soon
Despite the short covering at the
opening Of the market, veteran bears
were said in brokerage circles to have
left substantial short lines out, on the
theory that there had been no sign of
Spring business improvement, and that
uncertainties of Federal taxation and
balancing the budget still impose an
adverse economic factor
Wall Street has not generally been
inclined to lay much of the recent
sharp decline in the market to the bears.
Extensive selling of preferred stocks
and bonds, which are not popular We
hicles for short selling, has been re-
garded as evidence of discouraged
liquidation by investors. 1t was ac-
knowledged in some quarters, however,
that rumor-mongering may have been
a factor in the investor selling which
in turn has increased bear profits.
Stocks Rally at Opening.
The stock markets opening provided
one of those rallies that are typical of
a brisk covering movement.
United States Steel advanced 81 50 to
$36.25 on the initial sale, reacted to
S34.37 and closed at S34.75, up sl.12I
net. American Telephone, which touched
SlO5 share on Friday, sold at $I1O or
$3.75 higher, on the first transaction,
involving 5000 shares. 1t later dipped
to $1O7 90, but came back to $l08, the
net gain being SITS. American Can
made high of $3.50 for an extreme
good. Santa Fe Railroads advance of
$3.75 to $55.75 was cut to so cents.
The shares closed at $3.50. Auburn
Automobile, nearly SIS higher at the
best. held $1.87 of its advance.
Coca-Cola, Consolidated Gas, East
man, National Biscuit, New York Cen
tral. Canadian Pacific and Case were
up dollar or more on the day. West
inghouse, which opened with a 5000
share block at STATS, or nearly SO
higher, fell back to $23.S7, a gain of
$l,75. General Motors was sluggish,
but the preferred gained So.
The rally on the curb market was
mllder, but most stocks which had
recently been selling targets showed
recoveries. Electric Bond & Share i'm
proved nearly 81 net. Commonwealth
Edison, an insult issue, rose $2.25. then
surrendered all but so cents of its
rise. Cities Service, which yesterday
sold down to $3.50, closed today at
$3.50, up rs cents.
Bonds Gain in Value.
In spite of the somewhat severe de-
clines in the prices of corporate bonds
In the past several weeks, the stock
exchange reported that during March
the 1851 listed issues actually showed
a gain in market value Of $447 ,299, $50.
The increased values, however, are
explained largely by the upturn in
United States and foreign government
loans. On March the value of United
States Federal issues totaled $l3,9l2,-
050,864 compared with a valuation on
April l of $14,899 ,967,031, a gain for
this group during the month of $685.
9l6,167.
On the other hand, the market value
OF utility bonds decreased from So
O93, $50 to $3083, GIT ,461 during the
month; the industrials from S2,218.-
023,659 to $2,059, ,630,47f. and the rail-
roads from $7,l48,363,446 to $6,66l,-
9,2o3.
Foreign government loans increased
from $10, ,669, ,862 $50 to $11, ,632, ,644, ,2s2
Bonds of foreign companies declined
from $1,358,519,227 to $1,298 98,54s,l24.
The average price Of all bonds, per
500 par value increased from 1851
to $76.12. Listed bonds aggregate $52,-
276,599,02l par value.