Evening star., 1937-11-07
COMMODITIES TREND
DISTURBING INFLUENCE
Rail Liens Sag in Quiet Bond
Market-Curb Issues Are
Down Fractions.
BY FREDERICK GARDNER,
Associated Press Financial Editor.

Poiiilo BcieTdlly ana as muCn as or
SO in few instances.
Steels were easily the leaders in the
setback, but coppers, motors, rubbers,
oils, farm implements and miscellane-
Gus issues were also prominent losers.
The trend was lower from the start.
although selling was far from insis-
tent. In the second hour, however.
offerings expanded sufficiently to put
the ticker tape behind for a while. It
soon caught up and the pace was only
moderate to the close.
The Associated Press average of so
stocks yielded IL points at 45.5 and
was just a Of a point above the low
for the year. Transfers totaled 1856
800 shares, compared with 1880 last
Saturday.
Commodities Decline.
Further softness in commodities was
disturbing influence. Wheat at Chi
cago was off 2A to 3 cents a bushel
Corn was down a to Is. Cotton re-
treated 20 to 35 cents bushel. Coffee
futures broke to new lows.
Secondary rail bonds fell to bottom
levels since 1888 and other listed loans
lacked recovery vigor.
The recent buoyant gold shares took
rest. most stepping into slightly
lower territory as financial observers
continued to scout foreign rumors
that Washington might boost the
price of the yellow metal.
At the same time bar gold in Ion-
don and sterling in New York hit new
tWo-year tops as boarding abroad
showed few signs of diminishing and
it was reported the British eoualiza-
ton fund had acquired gold from
America. Further repatriation OF Euro.
pean short-term balances helped de-
press the dollar.
Coppers were rather sickIy on the
belief OF some in this industry yester-
days cut of the domestic price to II
cents a pound may be extended.
Rails Improve.
Rails acted a little better than
other groups, excepting utilities, on
hopes the latest plea for a fiat freight
rate boost will be granted. 1t was
also noted that. in the transporta-
ton economy move. more than IT,
COO employees of class l railroads had
been dropped between September Is
and october 15
Wall Street continued to discuss
possibilities of Congress altering the
undistributed earnings and capital
gains tax laws, but the growing be-
lief this would be done apparently
was not converted into a stock-buying
urge.
Those who suggest steel output may
be dragging bottom at the present
time pointed to the recent 47,O0o-ton
order by the Ford Motor concern and
naval awards of more than 81 I,O0o. 900
each to Bethlehem and Midvale.
Bethlehem stock, though, was off ~
points at 451a.
Others prominent on the decline
were U. S. Steel at SO, General Elec-
trio, 37la; Chrysler, 67A; General
Motors, 1872; American Telephone,
148Ss; Anaconda, Is; Kennecott,
291a; American Smelling, At; Santa
Fe, 81; American Chain preferred, SO;
Sears, Roebuck, 6134; Montgomery
Ward, 371a; J. I. Case. 80; Loew's.
571s; Douglas Aircraft, 81; U. S. Rub
Der, 25la; Du Pont, 115h; Standard
Oil of New Jersey, 4934, and Texas
Corp, 40A.
Rail Liens Sag.
Rail liens sagged in a quiet bond
market. Other domestic corporate
liens followed narrow groove, while
Federal loans and foreign dollar is
sues were uneven.
The carrier group metz fairly heavy
selling, particularly lower priced and
defaulted obligations. The Associated
Press averages for 20 rails dropped
IL Of a point to 1873. the lowest level
since December 27, 1898.
Other rails pointing down included
Erie refunding SIS at 421a, off az,
Missouri Pacific SIS at 10, off /, New
York Central 3As at 831a, of 11h
and Southern Railway Is at 40, OF
az.
Utility and industrial liens held a
fairly steady course with most losses
confined to fractions. The average
for 10 industrials dropped 2 of a point
to 98.4 while 10 utilities were un-
changed at 92.6. International Tele-
phone SIS slipped point to go and
Postal Telegraph IS lost fraction
to 1919.
Curb Stocks Down.
Late selling drove curb stotks down
fractions to around a point in fairly
heavy dealings for a short session.
Some higher priced issues were OF
as much as S points but, in general,
declines were held to fractions.
Aluminium Co. dropped 51z to IS
and Newmont Mining was down 3
points to 60. Down point or so were
American Cyanamid "B" at 1854 and
American Gas & Electric at 241z.
Gulf Oil, a fairly heavy loser in recent
sessions, slumped 1% to 40.
Losing fractions were Consolidated
Copper, AZ, Electric Bond & Share
93s, Fairchild Aviation 25s, Fisk 6%,
Hudson Bay 10, Humble 571a, Niagara
Hudson Power 81a, st. Regis Paper
3h and United Gas AZ.
Countering the trend for minor
gains were Imperial Oil at 18 and In.
transitional Petroleum 1T 30k.