OCR Text |
Show STOCKS CLOSE STRONG WITH MANY SUBSTANTIAL GAINS Advances Due to Extensive Short Covering; Shorten Short-en ders Continue to Have Trouble. By BROADAN WALL. By International N'gws Service. N'13V YOKK, May 1. Stocks closed fitrong today, wltli many substantial galnti, the ndvunre largely tlue to oxten-rlvc oxten-rlvc short covering. Too much Kinphasls was laid on Lho unfavorable sido of 1)OBsIbIo development. A prolonged period of hard times, followed fol-lowed by a sudden crisis in the Mexican situation: a renewal of foreign liquidation, liquida-tion, and the default of the. Jtock Island bonds, had altogether encounigod short selling out of proportion to the (Ion ting supply of stocks. J'robably too much stress was laid on the reaction ln the steel and Iron business. At nil events truders overlooked tho danger ever present pres-ent of selling Steel common short below be-low CO. ProbHbly the success of the bankers In disposing of New rlavon next brought an upturn that should run further, as stockholders stock-holders have now renewed conildcncc and the bears a smaller chance to cover. Tho approval of the plan to reorganize tho Now York Central system has placed the shorts of this stock In an embarrassing embarrass-ing position and the decision iVlhe appellate appel-late division of the supreme court, denying deny-ing the request lo enjoin the proposed Union Paciilc distribution, proved unexpected unex-pected ammunition to the bulls Missouri Pacific a Puzzle. Missouri Pacific is still a Tuzr.lc. Undoubtedly Un-doubtedly a large short Interest has been 'rented In the stock, possibly in the hope that the company would be forced Into a receivership, thus pnabllnu some pessimistic pessi-mistic insiders lo cover their stocks at a substantial profit. The buyers of Missouri Pacific have kept carefully in tho background. A change of control appears inevitable and the street anticipates n new policy that will bo constructive. Recent management has bee.n all on the other side of tho book. Persistent rumors that tho eastern east-ern railroads would win out In their demands de-mands for a 5 per cent increase were current. cur-rent. Union Pacific gained 2R and advances ad-vances of from J to 2 per cent were numerous. Pennsylvania sold at 110 es-dlvldend and the next sale was at 111, a clear illustration of the paucity of offerings. of-ferings. Southern Pacific roee nearly two points and Lehigh Valley was strong at 1391. Barely it wuek ago these shares sold below be-low 133. Canadian Pacific was active with a two-point advance. Berlin a Buyer. Although London was closed. Berlin and Amsterdam sent buying orders that probably totaled 10.000 shares. Tractions came to the front. Brooklyn Rapid Transit, a G per cent stock. Is considered -particularly cheap at f14. It Is understood thai Interborough Metropolitan has arranged It finances and an advance In the preferred stock Is anticipated. Steel Htockn were strong, United States Steel common gaining more than two points jmd Bethlehem Steel Issues made substantial advances. Copper stocks were all firm, with good buying In Anaconda and Tennessee Copper. Cop-per. Bonds were activo and stronger. United States Steel f.s were In good 'demand at higher prices. Southern Pacific convertible con-vertible Rs displayed a firm tone, and many of the Industrial Issues scored advances. ad-vances. Tomorrow's bank statement ' promises to bo unusually favorable. Pennsylvania net earnings for March showed an Increase of $651,000. Missouri. Kansas & Texa3 lost $52,000 net. Further advances In prices will hinge largely on the extent of tho short interest. inter-est. The recovery from the low point of a week ago has reached a normal limit. Some reaction from tho pre-sent level Is to be expected. |