Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-09-21
FURTHER DECLINES
GIVE STOCKS TEST
Florida Disaster and Call
Money Rate Boost Believed
Factors.
BY STUART r. WEST.

Special Dispatch to The Star.
NEW YORK, September 21.-The
stock market went through greater
test today regarding it's actual posi-
ton. Yesterdays decline had made
stocks look pretty weak without any
adequate cause. The advance in cali
money rates to 5 y per cent was dis
cussed as a possible explanation and
SO was the Florida disaster. But eX-
perienced observers realize that these
were at the most, minor influences
The true eXpla nation lay in the over
done speculations in certain Industrial
stocks during the Midsummer. which
called for correction, and also In the
disclosure, through current earnings
reports that business conditions were
not uniformly tiourishing the way
they had been pictured two and three
months ago.
Motor Shares Recovering.
The market for the motor shares
was slowly recovering from the shock
of the Hudson Motor report, put out
the preceding day. Still the feeling
was that the optimistic things which
had been said about the motor indus
try would, in the light of Hudson fig
ures, following last weeks cut in
Willys-Overland prices. have to be
toned down Hudson Motor around 81,
gave evidence of having done good
deal of discounting. Dodge Brothers
4 was off q of a point. Yellow Truck,
at 3113, was selling points under its
recent high Willys-Overland was bet
ter supported. General Motors went
through it's customary wide variations,
most of the time keeping lover.
The collapse in Warner Brothers
Pictures was carried further. The
stock had closed yesterday 50la. 1t
dropped between and points in the
first hour. under what looked to be
The liquidation of exhausted margin
accounts. A great deal Of interest had
been aroused by the vitaphone pos
siblities and a big speculation had
been founded on this ground. This
speculation was what was being un-
done in the market for the last few
days, undoubt, Iiy involving some
heavy losses.
Allied Chemical was one of the
strong features among the special
ties. Tobacco Products went up over
a point.
Sugar Stocks Strong.
One of the main incidents of the
day was the strength in the sugar
stocks Cuba Cane preferred shot for
ward 3 points and so did American
Sugar. Cuban American, Great W est
ern Sugar and Punta Allegro went
along. II is too early to form any
opinion as to The damage done to the
sugar crop by the big storm. But
both in the raw sugar market and In
the market for the sugar stocks there
has been a very sensitive position on
the short side and this was ready to
he exposed on the slightest intimation
that crop estimates might have to be
cut down.
The equipment shares. as rule
were lower. Baldwin Locomotive at
one time lost a point, American Loco
motive q half point and Pullman, ,
points In the railway section profit
taking came into Chesapeake and
Ohio after its extraordinary rise of
Monday. Union Pacific and Atchison
were lower and New York Central
for the most part was unchanged
However, there was no suggestion OF
weakness in the railway quarter, and
the view taken in Wall Street circles
was still insistent that these stocks.
on account of the big traffic and large
earnings promised for the Autumn.
were in position to be taken up
whenever the market needed q stimu-
liant.