Evening star., 1926-10-05
VALUES co down
!: IN STOCK MARKET
Prices Break in Liquidation
Involving Big Transactions
Today.
BY STUART p. WEST.
In,n.a-.l. rIsl.n

Special Dispatch TO The star
NEW YORK, October 5,--Prices
broke sharply again in the early trad
ing today, then rallied. Some Of the
losses recorded in the first hour of
business were quite severe. Moreover,
they werc accompanied by large
transactions. When big blocks OF
stock change hands a point and nan
TO points overnight it does not mean
bear raiding." 1t means real nqulua-
ton
What appeared to have happened
was that a number of good SIZED spec
ulative accounts involved in the re-
cent bull campaign had been under
mined by Yesterdays break and were
forced to close out. 1t was what wan
street calls "distr"ss selling" The
usual experience on such occasions Is
that the stocks which have to be sac
rificed. pass into stronger hanos'
thereby improving the market posi-
ton.
Coast Line OF Badly.
Atlantic Coast Line below 200. was
off very badly on the day. and 1t was
down over % points from where IL
was selling about the time the very
poor earnings for August we're given
out Baltimore and Ohio opened down
A point and a half and at 1922 had
lost nearly points since the announce
ment of the increase in the DIVIDENDS
TO 6 per cent which many reSafde1
as disappointing. AtchlSon at one
time was off almost 3 points from tIe
previous close and over 10 points from
its top. The first sale OF southern
Railway showed a loss of half
be- no ,NrnGnprt
substantial addition TO common
share capital under the new financial
plan. Later the stock rallied.
New York Central. selling eN-dlVl-
dend and Reading were both at one
stage off over a point On the otheI
hand. Union Pacific was steady on
the decline. and considering the eX-
tent of it's recent advance was down
comparatively little. The main 1ea-
ture on the buying side of the ralls
was furnished by the Van SWerlngen
issues under the lead of chesapeake
and Ohio. This, of course, was IN re-
snonse to the report that the minority
shareholders of Chesapeake were to
be taken care of in a manner that
would be satisfactory to them. Erie
shares held we'll during the early dis
turhanCo. then became very strong in
the afternoon. Erie first preferred
was vigorously bought on the way up
Baldwin Locomotive, after losing
nearly points, rebOunded Sharply
and went we'll above yesterdays final.
American Locomotive acted well.
Pullman gave way another point on
top of Yesterdays 5-point loss. but
this was while the general selling was
on.
General Motors Supported.
General Motors received consistent
support throughout. The stock was
allowed to open down with the rest.
but was readily taken on the decline
and was "a pillar of strength in the
later dealings. 1t looked as if some
speculative accounts had been hit hard
in Hudson Motor. Below so the stock
was off some Is points from where it
was selling at the time OF the very
door reDort for the second quarter.
The liquidation was completed at the
low figures and the stock rallied.
Nash Motors was conSpicuously strong
and the early selling did not hit Stude-
baker.
Among the oils what looked to be a
big block of Texas Co. was thrown on
the market, forcing the price down
from SAX to SO. When this selling
was over the stock recovered. Phil
L
was not being supported apparently
as it neared AS Gen. Asphalt lost a
point, then rallied. Recent price cut
ting on the Pacific Coast is what the
been chiefly felt in the market for the
oil shares.
The market Quieted down in the late
afternoon, then began to show an un-
certain tendency. The midday rally
had depended upon short covering
and when this was over prices in
parts of the list commenced to waver.
MontgomeryWard's jump of over 3
points was set down to the run-in> of
a short interest. The increase from
81 to SS in the American Smelling
dividend had been expected and
caused only a moderate rise in the
stock on the other side the cutting
In two of the Moon Motor dividend.
bringing it down to n $3.50 basis, also
had been anticipated by the recent
drop in the stock.
United States Steel common. while
early in the day had been sustained
around 147. and had subsequently ral-
lied a point and a half, proved SEN
sitive again in the late trading. The
Van Sweringen stocks failed to push
ahead any further.