Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-08-13
RALLY FOLLOWS
MARKET DECLINE
General Motors More Than
Regains Loss After
Breaking 7 Points.

Special Dispatch to The Star.
WALL STREET, n. Y, August 13
Prices rallied briskly on the Stock
Exchange today following an early
decline on the idea that the SO per
cent stock dividend on General Mo-
sentiment would be unsettled by the
raising of the New York Federal
Reserve rediscount from 312 to 4 per
cent.
In the end neither of these incl
dents counted. General Motors after
breaking nearly points. more than
recained its loss. L. S. Steel. which
had dropped off 9 points or so at
the beginning, rallied in the last half
hour well above Thursdays close and
there was a remarkable upturn In
some of the rails. The market
closed actively at top prices.
Other Motors Inactive.
While General Motors was going
through it's readjustment other motor
shares grew considerably less active
and for the most part We're lower.
Hudson Motors came down 3 points
before 1t ran into enough buying
10 check the decline. Mack Trucks
reacted sharply and SO. naturally. did
Dupont. which always sympathizes
with General Motors. Lower-pr1ced
issues. like Pierce-Arro and Chrys-
Ter. were somewhat lower, and an out
break of selling occurred for a time
in yellow Truck and Coach.
Railway shares were taken better
care of than most others on the dc
cline. The Federal reserve rate In
IL
realizing at the start. While this sell
ing was in progress leaders like Atchi
son, New York Central and Chesa
peake and Ohio dropped off point
or more, and Atlantic Coast Line came
down still more. But the recession In
the rails appeared to be taken advan'
tage of to buy stock, and TINS new
huying showed in the afternoon. At
Gibson, Baltimore and Ohio and New
York Central among the standard dlVl
dend payers, and Rock Island among
the non-dividend payers, were the ones
which came back most readily. Atchi
son at a new high record with much
more activity than ordinarily GER
tainlv suggested more strongly than
at any time favorable dividend devel-
opments impending. Baltimore ana
Ohio also passed its previous top.
United States Steel Down.
United States Steel common sold
down over points in the early deal
tncs. then recovered partially. Evi-
IDENTIFY, however. the stock, because 1t
has been moving for the last two
months in close accord with General
Motors, was feeling the effect OF the
iessening of speculative interests IN
the latter.
United States Cast Iron Pipe broke
sharply and so did American Safety
Razor. Sugar stocks were for the
most part lower. Oils were inactive
Among the public utilities further sell
ing occurred in Columbia Gas, While
BROOKLYN Edison. allowing for the
quarterly dividend which came off the
price. was fractioHally lower. me
campaign in American Can appeared
to have terminated, at least for the
time being, and the stock at one time
was off ? points.
1t was a railroad share market pr1
marily. With the cessation of all pres
ent incentive for dealing in General
Motors and with the obvious check TO
speculation in the steel shares. the
Wall Street following was quick to &C.
cent the lead of the railway shares.
AS Atchson passed it's previous top
and kent sweeping forward into new
high ground. stories of a special stock
dividend as high as SO per cent were
revived and received some credence.
New York Central got above l3o
again. st. Paul issues continued &C.
tive. rallying after an early reaction.