Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-08-04
STOCKS RISE, DROP,
THEN STAGE RALLY
Cochran Partly Denies Re.
ported Statement About
General Motors Future.
BY STUART P. WEST.

BY STUART p. WEST.
Special Dispatch to The Star.
NEW YORK, August To-day S
stock market started in with new
high records being established in a
large number of industrial special
ties which have been to the front
throughout the recent campaign Tor
higher prices. General Motors open
ed at 2l41a and was up point from
last nights closing to another new
high. U. S. Steel common shortly
after the opening of business frac-
tionally bettered its previous top
figure.
Then after the initial demand had
been supplied came reaction sui
ffcent to- carry the leaders down
rather sharply, General Motors drop
ping to 205lS before the selling was
absorbed. The decline is steel common
extended over ? points and had an
unsettling effect upon other promi-
nent industrial leaders.
At midday j. 7. Morgan Il CO.
gave out the statement for which
all Wall Street had been waiting ever
since the interview was published
purporting to quote Thomas Cochran,
a partner in the firm, as predicting
that General Motors was entitled to
and would sell 100 points higher. The
statement said that Mr.. Cochran, who
was on the Olympic en- route TO Lon
don, had requested that the following
be given to the press:
"In response to inquiries made by
a. ship news reporter upon my sailing
from New York on a holiday, spoke
with enthusiasm Of the earnings, man.
agement and prospects of the General
Motors Corporation. | authorized no
statement of any kind as to the future
price of the stock, which obviously
no one can foretell."
Motors Causes Nervousness.
Then came the real test. The great
est interest naturally centered in
General Motors. Some reaction had
taken place previous to the publica-
ton of the Morgan statement. There
after, however trading in the stock
was in enormous volume and one
point fluctuations between sales were
common. General Motors shortly
after the announcement was selling
around 208, where it compared with
the previous close of 2l31n.
The action of General Motors nat
urally caused considerable nervous
ness on the part of the speculative
element. It was commented upon,
however, that the only part of Mr.
Cochran's statement which was de-
MED was that regarding the future
price Of the stock. The selling which
followed was quickly absorbed and
rallies set in, although prices for the
leaders were still down from their
highs. 1t was evident that the in
terests working for higher prices had
the market well in hand.
Buying Again Sets In.
When it was realized that no liqui-
dalton of Importance was coming out
and those back Of the recent buying
were in position TO see their favor
ties through a technical reaction, buy
ing again made itself felt in numerous
directions
United States Steel common in the
afternoon was practically unchanged
from where it left off last night
Many of the independent steeIs were
a point to two points higher on the
day, while the equipments were in
more active demand than they have
been for some time past. This was
true Of Baldwin Locomotive, which
went to 125, a new high on the move:
OF Westminster Air Brake, up well
over point, and Of General Railway
Signal, up more than points to a
new high for the year. There was
nothing new to account for the sud
den strength in this quarter. The
best opinion was that in view of the
outlook for equipments companies,
they had not borne their full share
in the present upturn.