Evening star., 1949-11-13
Stock Market Eases
In Week Despite
Diet Of Good News
By WiIIiom D. Horeon
Associotsd Press Financial Writer


NEW YORK, Nov. l2.-Good
news left the stock market cold
this week.
The steel strike sputtered out
by Friday when United States
Steel Corp. reached agreement
with the CIO United Steel Work.
ers following similar settlements
by other major producers earlier
in the week.
John L. Lewis, boss Of the coal
workers, sent his men back to the
mines, to work at least until the
end of the month and indefinitely
! If contract can be negotiated by
then.
And General Motors directors
ordered one of the largest divi-
dends in the history of American
business.
Market response to these de-
velopments was a decline for the
week of more than half billion
dollars in the quoted value of all
stocks listed on the exchange.
Day-to-day declines were small
and a number of leading stocks
moved ahead on their own. But
the front edge of a rising market
was definitely blunted.
Follows Usual Pattern.
Wall Streets reaction to the
labor news was widely regarded as
traditional. Often in the past
stock prices have advanced while
labor strife approached a climax,
and declined after the climax of
peace.
A good many financial observ-
ers figured the decline had a con-
siderable distance to run but the
setback, at the same time, was
regarded as no more than an in
terruption to the markets main
upward trend.
Tax selling normally picks up
soon and this, plus profit taking
sales after a rise under way for
live months, was expected to put
the market on the defensive for a
few weeks at least.
General Motors year -end div
idend of $4.25 a share to the
owners of more than 44,0OO,O00
shares of common stock exceeded
some of the most optimistic ex-
pectations. The stock surged
ahead and for a short while stim-
ulated demand elsewhere. At the
close Saturday GIN, most actively
traded issues of the week, was up
25s at 7112.
Strength in Du Pont reflected
the size of the GIN dividend, for
the chemical company owns TO-
100000 common shares of GIN.
Du Pont, also actively traded,
gained 2l2 on the week at 6l5s.
The lavish hand displayed by
GINS board of directors helped to
raise hopes that the Studebaker
board would also feel generously
inclined at an approaching divi-
dend meeting. The stock bounded
15s to 263s during the week.
One of the highlights of the
weeks business was a sudden drop
in gold stocks after President
Truman. in an unusually outspok.
en- statement. declared that the
price of gold would remain at
S35 an ounce SO long as he Ia
President.
The stock of Homestake Min
ing, the largest domestic producer
of the yellow metal, dropped "a
during the week to 445s. Alaska
Juneau, Dome. and Mcintyre Por.
cupine also weakened.
Saturdays market was a wishy-
washy affair, aside from pro.
nounced softness in the colds.
The Associated Press average
of so stocks remained at 67.9,
with a minor rise in the utility
group offset by an equally small
loss in the rail division. The in.
dustrials were unchanged on av.
erage.
Gains and losses were exactly
equal at 266 each out of the total
789 traded. Sales of 470,00O
shares compared with 10000 last
Saturday.
Steel and automobile stocks
showed a tendency to rise for a
while but made only limited prog