Evening star., 1939-05-28
SteeIs and Rails
Are in Forefront
OF Stock Advances
Market Experiences
Its Best Week Since
Middle Of April
BY FREDERICK GARDNER,
Associated Press FinanciA Writer.

ny CNCDCnASh OhnONLns
| Associated Press Financial Writer.
NEW YORK, May n. With
trends continuing to point toward
recovery, the stock market today
finished its best week since the
middle Of April.
Unlike many recent Saturdays,
volume was on the expanding side.
While late realizing cut gains run
ming to point or so at the close,
steels, rails and specialties were well
in front.
The Associated Press average of
go issues retained net advance OF
O.3 Of point at ATS. For the week
this composite was up ~ points.
The days turnover amounted to
1872 800 shares, compared with 193,-
280 last Saturday.
The days news, on the whole, was
on the side of rising prices. Prin-
cipal attention, however, centered
on Treasury Secretary Morgenthau's
testimony before the House Ways
and Means Committee in which he
criticized the undistributed profits
tax and urged congressional study
of other levies which, he suggested,
might be amended in the interest
of promoting lasting business re-
covery." At the same time the
oflcial warned that tax changes
must not reduce Federal revenue.
Steel Issues Revive.
Steels revived as forecasts of next
weeks mill operations indicated
brisk upswing with virtually all CEN
ters participating. Buyers appar-
emily stepped into this group on the
thought that expanding production
would tend to Offset the price slash
ing which took place this month.
Rails were aided by hopes of relief
legislation to follow the passage by
the Senate Thursday of the trans
portation coordination bill.
Motors pushed up for a while, but
| dipped at the last as the strike at
the Detroit plants of Briggs Mfg.
continued. Motor makers which
depend on this concern for Access
sories have been hit by the walkout
To date some 10000 workers have
| been made idle.
Stocks ending behind plus signs
in the brief session included United
States Steel, Bethlehem, Montgom-
cry Ward. Goodyear, Santa Fe,
Great Northern. Standard Oil of
New Jersey, Allied Chemical. West
inghouse, American Telephone and
Douglas Aircraft.
In the liveliest curb dealings in
more than q month fractional gains
were chalked up for Lockheed,
American Cyanamid "B," American
Gas g. Electric and Gulf Oil. Elec-
trio Bond & Share shaded lower.
Turnover Of 5000 shares compared
with 81 900 a week ago.
Attendance in boardrooms was
sparse. many traders leaving for q
long holiday In view of the clos
ing Of the exchange next Tuesday
for Memorial Day. Most foreign
markets were in recess today and
will remain shut Monday for Whit
suntide.
Upturn in Bonds.
Bonds, led by rails took a turn
for the better In the latter part of
the days proceedings Commodities,
after their long uphill pull, took q
rest in irregular territory. Wheat
at Chicago was of " to q Of a
cent a bushel and corn was down
q to Is. Cotton was 10 cents a
bale lower to up IS cents.
A sharp rebound in the steel op-
Grating rate gave the market lift
Monday. There was a slight set
back Tuesday with Wall Street opin-
ion mixed regarding the Presidents
speech before the American Retail
Federation. The automotive labor
troubles were also depressing in
fluence.
A broad advance in industrial
commodities brought short covering
Wednesday and the list had its best
day of the week. Talk Of huge
lending spending program being
launched by the administration
aroused some imitation thinking and
this also was credited with inspir-
ing buying.
The market held a shade ahead
Thursday despite profit cashing by
traders. Reports tax revision
agreement had been reached at
Washington was steadying factor
Modest advances were again posted
Friday as business news took on a
moderately optimistic tinge.