Evening star., 1926-03-04
VIOLENT REBOUND
IN STOCK MARKET
~~0N
Gains From 10 to 20 Points
Are Recorded Before End
of Days Session.
BY STUART p. WEST.


Special Dispatch TO The Star
NEW YORK, March 4.-The stocf
market rebounded violently touaS
after the sensational decline OF tnt
three preceding days. The rallI pe.
gan at the opening ana KEEP -,
steadily. Toward the end 1t becaln'
ye,,v ranid High priced industrials Is
were rebounding all the way from ~
to over 20 points.
In other groups there were au
yances Of over 5 points. Snort cove
ing was extremely urgent at the close
and prices had their largest auHaitI' an
then. Transactions were over -'oo''
900 shares.
Selling Readily Absorbed.
There was a good deal or Iresn
selling in the stock market TO-DAY pu'
:, vas readily absorbed and the mar
ket rallied sharply from the start.
ON the first few transactions lllei
were numerous gains OF poinV ~
. points and even more. rms az,
vance was maintained ana iilc' VA70N
as the day went on. .
. The sharpest rallies occurred as
rule among the industrial speclalties
stocks like American Can, Foundation
C'o Woolworth. KresEe, Postum
cereal Tobacco Products, Mont
conery Ward, Allied Chemical anG
Savage Arms. These stocks had nae
1he most violent and extensive ian
and logically they came pack 'he
most on the rebound, -..,o,
The stocks affected by the MCKEE
Plate decision were over the scare,
n was recognized that there would
have to be a materially different hiiahL +
ciaI program, but the idea was ina
with the financial side made so that
il would pass muster, the merger
would eventually go through. on .iiiE
expectation the stocks concerned, IKE
tho Fries Chesa peake and Ohio and
Pere Marquette, all rose Sharply
Rail Shares Come Back.
With the recovery in the Van
Sweringen stocks. other rails came
back easily. Delaware, Lackawanna
and Western. New York Central, BAL
timore and Ohio and Atchlson We're
up to 3 points. Union Paclhc rallLeo
over a. point. The rebound was quite
as pronounced in stocks like missouri
Kansas-Texas, Kansas City southern
apd New Haven and others which
had sold on a mistaken idea that the
Nickel Plate action meant Il CallnS
off of other consolidation plans.
North America shares, which nave
been special objects of selling our
ing the last few days. ran M sharp
" today on what appeared to be I'M
nortant buying. On Tuesday over
100. 900 shares had been dumped upon
the market for whatever they would
bring. This was followed by another
heavy selling movement "Wednesday,
involving 65, 900 shares. There was
no doubt that "a good deal of these
offerings represented distress liquida-
ton. The report on earnings for 1925
will he published Monday and will dis
close substa ntial increases in earn
ings of recently acquired subsidiary
compa nies.
a good deal Of the buying today ap-
peared TO be for the account Of bay
gain hunters who were combiug the
market for stocks which they con-
sitiered had been driven down to un-
warrentedly low prices In view OF
their earnings as the result of sacrifice
selling.
The closing was strong. Short in
terests scrambled to cover their con-
tracts in the late trading as shares
displayed increa sing buoyancy. Cen
eral Electric and American Can both
sold IS points above last nights clos
ing and Woolworth rebounded almost
II points Additional gains OF . to 8
points included American Brake Shoe
and Foundry, American WaterWorkS,
Sears Roebuck, International Tele-
phone. Pittsburgh and West Virginia,
Canadian Pacific, Pullman and Mack
Trucks.
Total sales approximated 100000
shares