Evening star., 1923-10-17
STOCKS IN BREAK,
!. THENIN REBOUND
New Lows Early in Session
Followed by Sharp Up
E turns in Values.
BY STUART p. WEST.

.. b1 STUART II. WEST.
Special Dispatch to The Star,
NEW YORK, October 1.-THE
stock market today demonstrated,
after further drive in the early
trading, that the leading industrials
were encoupteripg the same support
1hat had appeared when thay were
around the same low levels, iirst In
July. second in August and then
again in September. During .he first
pour fresh selling occurred IN so.ns
OF the rails and d sharp attack was
MADE upon the motor and tire Stocks
IL soon became apparent nat IL II
was the purpose of this selling move
ment to induce 1iquidg<fon in the
rest OF the list it Waa meeting with
NO success. Perceivtpg this, traders
started IN to coveg and there was
swift rebound.
kebouna Helps Many Stocks.
stocks like Baldwin Locomotive,
SniSIic an Can, American Woolen and
Stuoeoaker rallied a point to a point
an @sno. a half in less than half an hour.
J Ae run-up In Willys Overland pre-
erred showed that the stock is st'Il
sc closely held that very little buy
ing can cause a substantial advance.
Ihe big holders of this stock con-
tlnue to figure upon some distribu.
tion soon on back dividend account.
industrial Alcohol was weak at the
start. but later recovered. Alcohol
pllces are the highest In three years
and the profit margin of the pro-
uuoers is the best it has been in all
this period
OIL stocks stood up we'll in face of
fne renewal of the price-cutting war.
Pfoducers and Refiners was an cx-
ception, succumbing 60 another wave
q selling, which Drought out again
the twin rumors of new financing
and passing Of dividends.
steel bookings Improve.
the sh9rts in the steels were sufii-
fflenty Impressed with the weekly
tFade Summaries TO do considerable
SS0Vsrmg. The statement by the
Cleveland Iron Trade, Review that
new bookings so far in October had
run ahead of the September average
dId not MT in with the preconceived
notion of professional Wall street
ehat the steel industry was going to
the had
Moreover. there was a reluctance TO
be short of the steels with the Re-
public Iron and Steel statement for
the quarter due after the close of
business. The informal report was
that this would make favorable
driven down below sS in the early
trading. but joined in readily when
the market turned.
Endicott johnson Drops.
The selling in Endicott johnson.
which carried the stock TO a new
low for the year. was associated
again with the report that the COM
psny some time ago advised its en-
pioyes to save their money, This ad-
vice was accompanied by references
to the business. outlook which were
not optimistic. Whether or not this
advice was an expression of what Of
ficislS foresaw in the affairs of their
a nt
generally known. But the street was
inclined to place that construction
upon the statement. At least II has
furnished another excuse for the SELL
johnson and stocks of companies
which deal with the shoe trade.
Philip Morris was feature again
today, touching the highest it has
cold this year. Accompanying its rise
vas rumor of a merger with an
other factor in the tobacco industry.
At the same time interests which arc
credited with a bullIsh attitude to-
ward the stock market situation were
said TO be active in Philip Morris.
Brokers' Loans still Heavy.
In connection with the current gos-
sip regarding brokers' loens which
are a barometer of public partieipa-
tion. il was pointed out that the high
point was reached In February, when
loans stood at approximately $4,000
000, 900 - @
The recent low estimate was $780,
600, ,000--ana apparent decline of 321.
per cent. But II has been shown that
200 representative industrials and
rails have declnied about % per cent,
or. in dollars, $40, 900, 900, which,
when deducted from the amount of
decline in loans. together with stocks
which have been taken out of loans,
leaves q large amount of loans out
standing, and hence the public long
account is calculated to be still fair
ly large.
Final Trading Rather Slow.
Trading proceeded rather more
slowly IN the late afternoon, but the
market in general retained its better
tone. Philip Morris, one of the speciality
leaders. made its high, crossing 2i in
the last hour. An announcement re-
garding the negotiations for a new
tobacco combine is expected at any
moment. Woolworth stock made a
new high for all time, when it got
above $50.
Great Northern preferred had a
small recovery and Chicago and
Northwestern, weak at the start, also
came back some. but selling per-
sisted in Northern Pacific.
Rubber and tire stocks did better
in the late trading, but not until Kelly
Springfield had been driven down to
a new low and considerable weakness
appeared in. other members of the
gro"r. There was a further break in
crude rubber prices in London, COM
reIlInS some. dealers to reduce the
quotations to 261a cents a pound. a
new low for the season. The selling
or the Pan Americans was accom-
panied by reports of new financing
that might be announced next week !
rTnGy1rr TIC TDnro