Evening star., 1924-04-28
STOCK MARKET DROP
is TRACED TO SHORTS
Decrease in Bear Account, With
Cessation of Demand, Bring
Abrupt Decline.
SHARP BREAK IN U. S. STEEL
Other Important Groups Easily Re-
cede in Quotations.
BY STUART r. WEST.

BY STUART r. WEST.
Sgscial Dispatch to The star.
WALL STREET, NEW YORK, April
2S.--Todays abrupt decline on the stock
exchange was primarily due to the ces-
sation of the demand from the short in
terest, which had played such Il prom
iuent part in last weeks recovery. With
;hc bear account reduced, as ii was very
substantially after the five-point rise
from last Tuesday to Saturday, the mar
ket had become vulnerable again. When
recent spectators for the rise tried to
sell this morning they found the buying
mower very poor. Within the first half
hour the losses ran from a point to .
points. Subsequently they were in
creased.
sharp Decline in0C. =. Steel.
The decline in United States Steel
common was sufficiently sharp to raise
the suspicion in some quarters that
the directors at their meeting tomor-
row might have an unpleasant sur
prise up their sleeves. This, however.
was not the view held by most people
of substance These continued to look
for a 50-cent extra. the same as at
he last quarter. while admitting as
q. possibility that the falling off in
the steel trade during the last month
might influence the decision. Other
steel shares came down with the
leader, adjusting themselves to the
certainty that the second quarter VIII
uc period of considerably reduced
profits.
other important groups gave way
quite as easily as the steels. Bald
win Locomotive, American can, Stude-
baker and General Electric all felt in
about equal degree the effect or the
withdrawal of the support from the
short interest The same was true OF
he oils. which were off y TO nearly
points. it taking comparatively lit
tie selling TO put them down.
Operations Quickly Suspended.
Where special operations for the
rise had been resumed last week,
they were quickly suspended. United
States Cast Iron Pipe. after maklns Z
a new high close to 81 at the start
broke rapidly.
Mercantile Marine preferred went
with the rest of the market. despite the
special strength which continued 10 be
displayed in Atlantic, Gulf and West
indies common and preferred. The
same persistent selling which has been
going on all along in American sugar
issues was renewed and was evidently
something more than merely part OF
the general decline in the sugar group.
Railway shares We're not much
affected one way or the other by the
March traffic returns. many of which
made unfavorable comparisons. AT
times Norfolk and Western showed
considerable independent strength, and
50 did Lehigh Valley and Wabash pre-
ferreG A" Norfolk and Western is
acquiring a habit of moving against
the market. 1t was decidedly weak on
Saturday, when the rest of the list
was strong.
slight Rally Checked.
Prices rallied slightly in the early
afternoon. but turned downward
again in the final hour = The leading
bear interests concentrated their et-
forts mainly upon Steel common. real
izing that an exhibition of weakness
i'm this stock on the eve of the dtvi-
d, nd declaration would uusettle the
entire market.
The estimates by the Federal Re
serve Board in its monthly review
that the output of basic industries
had dropped per cent in March; that
wholesale prices were down on an
average of l per cent and were .
per cent below last wear came in Tor
attention The comparison with
March, 1928. however, is of little
value. because both production and
prices at that time we're abnormal
The same was to be said about the
uufavora BILE compa rison which most
Of the March railway reports out to-
day, made with the same month last
Year. The brief initiation had reached
its climax in March a year ago and
had it's effect in temporarily swelling
the traffic movement of the country.
MARKET SHOWS REACTION