Douglas daily dispatch., 1926-12-29
PRICES TAKE A
DROP TUESDAY;
SHARP DECLINE
(By The Associated Press)
took market averages:

NEW YORK, Dec. 2S.-(P-A sharp
downward readjustmept Of prices took
place in .today's stock market Sell
ing orders apparently were for both
the long and short accounts and spread
over a rather broad list, final quota
tions disclosing a long list of net de-
clines ranging from one to neary seven
points.
Speculative disappointment over the
failure of the Allied Chemical directors
10 make more liberal dividend dis
tribution and, the declaration of only
the regular dividend on American Can
was believed to be the chief influence
behind the reaction. Bearish sentiment
also was created, however, by the in
crease in brokers' loans and by wild
rumors concerning possible break
in our relations with Mexico as re-
suit of new land laws which go into
effect in that country on the first of
the year.
Allied Chemical, which touched the
record high price of 14S% a week ago
Monday and closed last night at 141 ~
was hammered down to 134A, closing
slightly above that level. The increase
in the annual dividend rate from $4
to Sc was not very cheering to those
who ha dlooked for a big split-up,
with the maintenance of the $4 divi-
dend on the new stock. American Can,
which was bid up recently on talk of
a 81 extra, sold off two points when
only the regular dividend was author
lied Weakness of American Smelling
and the American issues, which
have large property holdings in Mex
leo, was indirectly traceable to the
Mexican rumors
The recent stock dividend on Steel
common undoubtedly had stimulated
buying in Allied Chemical and other
iindustrials issues which offered pros
poets of similar action, creating in
some an over bought condition which
today's reaction probably was intended
to correct Recessions of one to three
points took place in such standard in
dustrials as u S. Steel common, Bald
win, General Motors, U. S. Rubber and
Radio Corporation, with declines of
four to six points in international Har-
vester, U. S. Cast Iron Pipe, Chicago
Pneumatic Tool Ma konal Lead and
United Drug Trading at this time OF
the year also involves extensive re-
adjustment of speculative accounts for
the purpose of registering losses un7
der the income tax, law, which also eX-
plains some of the confusion in price
movements Notwithstanding the many
optimistic forecasts of business now
still exist in some quarters over the
future outlook. 1t is conceded, how
ever that the huge sums to be pald
out in the next few weeks in the form
of dividends and repayment of princi-
pal are likely to act as a SUSTAINING
Influence on the securities market.
| A sharp break of three to four cents
a bushel in wheat prices based on re-
yised upward estimates of the worlds
surplus of the commodity, was the out
standing development in the commod-
+ ity markets Cotton, coffee and sugar
| prices showed little change.
Call money again held steady at ~
per cent all day, although banks called
( about 500, 600, 600 in loans to strengthen
I their reserve position. Time money
and commercial paper rates were un-
changed.
| Foreign exchanges held steady, with
French francs quoted around 3.96 cents
and demand ster ng around
S4S4 1916