Evening star., 1948-12-26
Stock Advance Brings
HaIf-Bi||ion Present
Prices on YuIe Eve
By the Associated Press

NEW YORK, Dec. 25.-1nveStors
and spectators picked up half bill
lion dollar present in the stock eX-
change on Christmas Eve.
That was the approximate total by
which the general level OF prices
advanced on the stock exchange on
Friday.
Actually it wasn't much of an ad-
vance, but it acquired some slgnln-
canoe because it was the first time
that the market showed a pro-
nounced inclination to break out OF
q trading groove since December /.
The early performance Of the
market was something OF dlsap-
pointment to a large group in Wall
Street which had expected sizeable
year-end rally to get under way be-
fore Christmas. The most favorable
estimate of a market which barely
budged before the Friday rally came
from those who regarded it as
show of strength in the face of tax
selling and the hoisting OF storm
signals here and there in the busi-
ness world.
There was no question that
traders played their cards close 10
the chest. There were few, II any,
who wanted to take an aggressive
nosition when uncertainties were
blowing through Wall Street.
Tax selling operations, coupled
with switching from one stock to
another, probably made up the pulK
of the weeks transactions. Selling
to establish tax losses, by and large,
usually tends to result in little or no
change in the amount of money in
vested in the market. One hundred
shares of a certain stock may oe
sold to fix a loss for tax purposes
but the proceeds Of the sale are
normally used to buy another stock
so that the net result on the mar
ket is limited.
This December, however, brokers
have noted a reluctance to re1nvest.
Many of their clients, in otner
words, have preferred to sell for a
loss. take the cash, and hang on
to it. The most frequently advanced
reason for this decision was that
they preferred to take Slde-llne
position until President Truman has
had his say to the new Congress
early in January.
A counter-b balancing operation
has been the investment in stocks
of some of the rich flow of dividends
which prosperous corporations nave
been dishing out to stockholders IN
the past month or more.
A number of stocks were singled
out for attention during the week,
mostly at higher prices but Few
at a mark-down.
One Of the most interesting sit
uations was In Atlantic Gulf & West
Indies Steamship Lines. In two days
the common stock jumped around
10 points to the highest price OF
the year.
Control of the company changed
hands earlier in the month after
a block of the common was pur-
chased by an investment concern
at a stated price of S47.50 a share.
The advances this week took the
price far above that level.
Buying did not come from any
concentrated source, it was learned
in the financial district and a
spokesman for the investment con-
cern making the early purchase dis
claimed any knowledge OF who was
buying. It was suggested that the
jumps represented nothing more
than speculative demand based on
the change in management.
The increases in price, though,
were sharp enough to attract the
attention of the financial authori-
ties.
1t is normal practice for the
Stock Exchange and the Securities
and Exchange Commission to inves-
tigate Immediately any unusual
transactions.