Evening star. [volume] (Washington, D.C.) 1854-1972, 1948-09-05
~ THE SUNDAY STAR Washington, D. C.
SUNDAY, SEPTEMBER
Stock Market Rises
To Highest Level
Since Late July
BY the Associated Press

NEW YORK, Sept. 4.-The stock
market climbed to the highest level
since late July this week before TAX
ing a pre-holiday breathing spell.
Rumors played a part in the ad-
vance as well as actual develop
ments. Volume of trading expanded
on the way up, slackened on the
way down, signs usually considered
encouraging.
Brokers and their customers de-
parted for a long Labor Oar week
end in fairly cheerful frame of
mind. Nearly $4,000 000, 900 has been.
added during the week to the market
quotations OF all securities listed
on the Stock Exchange
The discussions on lifting the Ber-
lin blockade and other questions
affecting the German capital had
descended from top policy to the
operating level. A compromise set
tlement was in the wind.
News Mostly Favorable.
Domestic business news was most
ly favorable There were murky
spots, to be sure, and even a few
areas that were plain black, but
generally the business scene looked
promising Market attention tended
to veer from Berlin to the forth
coming National elections The
election of Dewey is regarded as a
fairly sure thing in the financial
district and increasing attention will
be devoted to whatever Segments of
the New York Governors fiscal pol
icy that are made public.
The market was again largely
professional affair, condition
which has prevailed for weeks The
public, in the words of one broker,
was waiting for heaven knows
what" as stimulant to wider par
ticipation
One floor broker, who operates on
the floor of the exchange and has
considerable intimacy with trading
moods and currents, described the
tone of the market as excellent"
The price level had descended to a
point where buying orders consis-
tently appeared. Large scale SELL
ing petered out. The market seemed
ready to respond to even small
pickup in demand
Mid-Week Trends Cited.
Mid-Week price trends tended to
bear out this theory. Volume picked
up considerably but still failed to
reach 100000 shares on any day. /
But quotations on Wednesday |
moved ahead l to points or more |
and held. On Thursday the ad-
vance continued but at a slower
rate. On Friday pre-holiday inf1u-
ences dampened trading vigor.
A couple Of too enthusiastic re-
ports from Berlin exerted consider !
able leverage on the market. One
was that an official announcement
was imminent and the other was to /
the effect that supply trains would
be moving into Berlin by this Sun !
day. Both stories turned out to be
buds but at first they apparently in
fuenced considerable buying.
Railroad stocks did particularly
well and some heavy industry shares
followed suit. The rails have acted
as market leader frequently in
past advances and now is closely
watched for clue to basic price
trends.
Individual railroad earnings re-
ports for July have ranged from
favorable to excellent and prospects
for months to come seem unusually
good. At the week end the Associa-
ton Of American Railroads reported
net railway operating income of
class l roads In July at sos .256 ,080,
a tidy increase over $61 ,197,828 in
July last year.
The AAR estimated net income in |
July was about $76, 100 900, or more
than double a year earlier.
Hope to Call Turn.
Such reports as the AAR's made |
good reading. But the financial
district knows-and it is a knowledge |
which has tempered the fervor of
many an investor and speculator-
that high prices and high income
will not 20 on forever. What the |