Evening star., 1936-05-26
AUTOMOBILE YEAR
HELD ONE Of BEST.
Equipment Companies Will
Share in Sales Gain.
Notes on Stocks.
BY the Associated Press.

6y tne AS6oclated FIeSS.
NEW YORK, May 26.-The finan-
cial district is not making a great
many bets on the automobile industry
at the moment, but observers in this
field say that the motor car makers
will finish 1886. barring unexpected
bad breaks, in the best position they
have been in for some years.
This, 1t is declared, probably also
will be true of the equipment COM
panies. A few of the parts manufac-
turers whose first quarter showings
were bit under the corresponding
period of last year are said to have
experienced a decided pickup in the
second three months and are expected
to record fair profit gains during that
time. The improved outlook for the
equipment factories arises from the
heavy output Of motor cars, which for
the current quarter is estimated at
about "a per cent above the first
months of this year and II per cent
ahead of the same 1885 quarter. The
production line has gradually slack
CAAC0, A4o"CfCls 44O1i 40 k1R111 RCeth dAAA
is expected to continue to decelerate
until production is stopped in the Sum-
mer or early Autumn for plant change
overs for new models.
Fare Cuts Watched.
Just how the bus lines of the coun-
try will fare, with the railroads cut
ting passenger rates, is a matter Of
much conjecture among brokerage
analysts. Comparable rail revenues
per passenger mile have been 2.25
cents, as against 1.80 cents for the
busses. Under the new schedules going
into effect in June, it is estimated that
the rail figure will average 1893 cents
To meet the decrease, Greyhound
Corp. filed new rates for eastern routes
which will bring the differential down
to that existing at present. Some,
therefore, believe the busses will not
be particularly affected, although there
are others who believe earnings for
both classes Of carriers may have to
undergo considerable revision
In the opinion of some Wall
Streeters the stock market, when it
breaks out Of its recently established
rut, will likely resume the advance
AS these see it, the late downward
drift of share prices has cleared the
atmosphere somewhat for traders, who
had been uneasy over the virtually un-
interrupted rise in equities ever since
March of last year. Hopes for higher
prices are based mainly on the feeling
that recent trade and industrial i'm
provement will generate further bet
terment, barring the unexpected. At
the same time some stress various other
considerations which are felt to point
the way uphill.
One of these is the fact tnat shares
are still said to be in strong hands
that is, in possession of investors we'll
heeled with reserve funds who long ago
bought for the long haul and who are
not readily to be stampeded into SELL
ing on minor shake-outs
Another argument put forward in
support of bullish opinion is that the
past years business recovery has put
liquid funds into the hands of many
and that part of this money may
easily find its way into equities. The
possibility of two bitches in forward
progress are seen by various analysts,
none the less, in the continued threats
to the stability of the French franc
and current domestic tax legislation.