New York, May 12.
President Roosevelt's tax statement and the improved soft coal situation failed to shake the New York Stock Exchange out of its lethargy today. New buying failed to appear, forcing the market down when traders lightened their commitments. Some selling was attributed to rumours of German troop movements on the Polish border.
The President's tax statement gave the market a temporary boost, but the rally ended when new buying failed to develop.
Business news was improved, but traders remained cautious pending more definite developments and a clarification of the European situation.
Utilities lost slightly except for Brooklyn Union Gas which gained two points. Rails and motors lost slightly. U. S. Steel was off a point but recovered a half point before the close. Coppers, aviation farm equipments, building materials rubbers and gold minings all showed slight losses. Oils were mixed.
Wall Street hears that electric utilities are headed for the best second quarter since 1931.
Western traders have resumed buying stocks.
McKeesport Tin Plate for the first half of this year should exceed 15 cents per share paid in the corresponding period of last year. Crane Ca, should pay $1.50 per share this year as compared with a 25 cent de-fixity last year.
Traders were impressed by statements coming from high executives in industrial and business quarters where increasing optimism has been noted recently regarding domestic business conditions.
Mr. Roy B. White, president of Western Union, said recently that the increase in his company's business indicated an improvement im general conditions of which the telegraph business is considered a barometer.
Yesterday Mr. Thomas J. Watson, president of International Business Machines said he believed all business firms in the United States would have a good year in 1939.
Favourable market factors today included: l. The break in the soft coal strike deadlock.
2. Automobile output this week increased.
3. Sharp expansion of retail trade.
4 Prospects of tax revision.
Among the unfavourable factors were these:
1, Rumours that Germany may attempt a coup against Poland this weekend.
2. The glass industry reported cur-
3. rhe proposed monopoly prosecutigen tne of Industry. the market—United Press.
The lac tive interest in
Text read from the printed page and cleaned; old type leaves the occasional error.