Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-02-08
Market Closes Weak.
FI-RTHER ACTION FEARED.
California Packing Quickly Joins In
Heavy Selling.
nv SrUART p WEST.
eY STUART T. WEST.

NEW YORK. February Nv ara
T2akiny broke violently in the STOCK
market today on the news that tne
Denartment of Justice had instituted
suit under the Sherman anu-trust LaM
and the Clayton act against the pAs
combination of baking companies.
The conclusion commonly drawn
uas that this would lead to similar
measures against the proposed 1000
comnany merger. Fearful or TINS
there was a rush to sell Cal1ornla
packing, which carried the stock down
nearly 20 points before any resistance
was encountered. Postum cereal as
a b,,yer Of California Packing, was
correspondingly weak. In the after
noon some rally occurred put SENT
naent toward this class or STOCKS ~as
badly shaken.
Some Stocks Firms.
e WAS only a few of the high-prlced
and more sensitive speculative la'oi
ties that sympathized with the drop
in the food shares. Generaiy Inc
market took this piece OF news as
fook the Stock Exchange loan ngures'
rtoicaIIy. The opening losses did not
exceed a half point, in such repre-
sentative stocks as United states
steel Anaconda, Hudson, Chrysier'
Studebaker and Northern Pacihc.
General Motors opened down point
and a half, but rallied quickly. Inc
oils were off less than half point as
a rule. This condition continued
through the first hour Ihen tne
market had to stand the further test
of the Ward Baking suit and the con-
seuuent break in the food stocks.
Ieathers Not Affected.
The leather stocks were not affected
a. sv,C l.
r,actions. Rumors of a merger of which
American Hide and Leather would be
the center, were current Saturday.
They were generally credited, ana
American Hide and Leather STOCKS
we're bid up sharply. Central Learner
issues went along moderately, ana SO
did Endicott Johnson, which usually
moves with the feathers.
American Telephone and Telegraph
made a new high record as II crossed
t466s Missouri kansas-TeXas con
tinued to be bought on merger dis
r,,ssions 1t was almost the only tea
rure Of the railroad group. During the
Greater part of the time stocks like
Kew York Central, Atchison and
Union Pacific We're freely supplied
limited States Steel opened down a
traction, regained its loss, then
sropped off again. 1t was distinctly
heavy as il had been all last week
The motor shares weakened as the
day went on.
Merger Plans .Chilled."
The days developments gave a chill
TO the merger discussion. which has
played such part in the recent mar
ket. Wall Street has gone to absurd
lengths along this line. 1t now sees
that the antitrust laws are not Cd
.olete and that the Washington au
rhorities propose to invoke them In
the case of big industrial consollda
lions which threaten to WELD What
Shey regard as too great power
The low prices were reached ma
way through the afternoon ana there
was a partial recovery in the late
trading All through the earlier dis
r,,rbance medium and low priced
>,hares and some even Of the higher
priced ones stood up we'll. There was
nttle or no loss III most of the oils
and coppers. while the leather shares
fot a time We're quite strong, and
there was insistent buying of q few OF
The rails, notably Missouri, Kansas
and Texas and st. I.ouis-South
western.
Mergers In the railway field are, OF
course, a different matter. Along the
lines laid down by the Interstate
Commerce Commission, they are be
ing encouraged by the powers that be-