Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-09-27
SEVERE SLUMP IN
INDUSTRIAL LIST
Prices Melted Under Aggressive
Bearist Drives on Spread Of
Price Cutting

/ New York, Sept. 27.--Thc industrial
divisions had another serious sinking
spell in this mornings stock market. 1t
was a sharp hard crack and when the
smoke of the battle cleared up prices of
the active issues were anywhere from
! to u points under Saturdays closing
| level. The shake down was made the
more conspicuous in that il followed q
! vigorously strong opening market. Be
! fore the market was half hour old It
turned decidedly rcactionary and melted
like cake of ice under the rays Of hot
July sun. The rails for a time we're
able to stem the powerful reactionary
currents, but in the second hour they
too were caught in vortex and carried
down with the rest of the list. Much Of
the selling pressure apparently eman-
ated from the professional traders with
an automatic withdrawal of pressure
around midday followed by feverish
! rallies.
There was no particular adverse de-
vclopmcnt TO account for the sudden
concentrated drive against the list, ex-
cept that 1t could be the financial dis.
turbance at Boston. The more potent
factor. and which gave the bears a
strong leverage was undoubtedly the
reported further widespread of the
| price-cutting movement. In ali events
| the market. especially the industrial
| division. provd to b surprisingly vul-
nrable as in many parts of this quar-
| ter unmistakable technical weakness
! was disclosed.
! 1t was evident the sharp character Of
! the drive was instituted by the bcarish
| contingent with the intention of reach.
! ing large number of unprotected stop-
loss orders, which were known to exist,
and which have unquestionably multi
Piled since the reaction in commodity in
| prices became the dominating market
factor. While there was considerable
! liquidation of speculative accounts. al
ready greatly impaired by the recent
marking down in the industrial division,
the greatest amount of the selling from
! all indications was for the short ac-
count.
With scarcely an exception prices
were substantially higher at the active
opening. Sentiment seemed to be fa-
! vorably influenced by the large gain
! in the Federal Reserve Bank reserves
! and the better understanding of the
! Clearing House statement. The initial
I advances of l to points were scored
! by all the active leaders, with the Mex.
lean oil shares the most prominent.
| m gums were ldSC DeIOfe the end
! of the first hour, when heavy selling
movement Of prominent industrials and
! specialties set in. Losses of . to G
! points were sustained during tho morn
ing. by Bethlehem, Crucible. Republic
| and Nova Scotia Stecls. Chandler and
| Studebaker Motors, Baldwin Locomo-
tive. Bosch Magnetic. Hide and Leather
/ preferred and American Wooden. Cop-
ners; shippinss. Corn Products. Food
I Products and Coca Cola also fell | 10
= : points. Early advances in the rails,
! including various minor issues. also
we're forfeited when industrials became
heavy.
Further depreciation occurred during
the intermediate session. The more rep.
rcsentative steels, equipments, coppers,
oils. motors and shippings xtendcd
their losses to the forenoon and much of
the recent rally in Liberty bonds was
effaced.