Evening star., 1926-10-11
STOCKS IN RALLY
|NLATE TRADING
Early Weakness Is Largely
Offset by Recovery in
Final Hour.
RN STUART +. WEST.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK. October l1.--Stocks
broke sharply again at the outset
today. They continued weak for the
first hour, rallied somewhat, dropped
off again early in the afternoon, ther
IN the last hour recovered.
The market had evidently run into
enough stronger buying at the low
level to induce professionals commit
led to the short side to cover in their
contracts. The rally in the last hour
jindid the greater part of the fore
noon losses.
There were no new reasons TO ex
plain the early decline. To say tha'
the money marker Was an influence
was to go directly aGilnst facts. The
rate on standing cau loans was raised
from Az to S per cent, but this was
of no consequence as compared WITH
the increase in the reserves of the
New York clearing house banks OF
$61 $50. 900, which turned the detlcl'
into a surplus of nearly $3S.0O0,O00.
Midway through the forenoon sup
porting orders made themselves felt
along with some new buying and a
good deal of short covering.
Stocks had been weaker during the
first hour than at any time IN three
months. Steel common broke through
141, where ii was off nearly pulndS
General Motors, the second leanlns
stock. was bought below $50, or de-
cline of points.
American Can was off over 2, Gen
rral Electric nearly .. while du Pont,
which had sold as high as 3o7 last
week, was dealt in below 323. Mack
Trucks were weak again and so was
Studebaker. Willys-Overland, under
pressure for a week or more, dropped
below 20 for the first time on the pres
ent movement.
Railway shares went down with the
rest. At one stage Atchison was off
a. point and New York Central and
chesapeake and Ohio more than a
point. Union Pacific touched a new
low for the reaction. AS a whole, the
railway list was selling below Where
it stood before the publication OF the
highly favorable August traffic re-
suits. People who had been so san
Cuine about the rails did not attempt
to conceal disappointment over the
action of these stocks.
Industrial shares were very weak
for a time. then they had a partial
rally. United States Industrial Alco-
Brake and Savage Arms were all
lower. Radio Corporation, below %,
was off 3 points from last week S
high. Commercial Solvents B, which
had broken more than 13 points last
week, went down still further The
decline continued in Coca Cola, fol-
lowed by a moderate recovery later
on.
Baldwin Locomotive, which on ac-
count of it's small floating supply is
capable of moving readily and in both
directions. succumbed to a small
amount Of selling. Westinghouse
Electric was down nearly point.
The market was very irregular in
the late afternoon. General Motors
dropped below $50 again. Atchison, at
142. was off almost 20 points from its
record high. The Street was no longer
talking about a stock dividend. 1t
was saying instead that Atchison had
been selling too high, measured by its
Investment return. Southern Railway
responding to the cotton situation
was down over a point on the day
and Is points from its 1926 top.
American Can. following the familiar
precedent of a split-up stock, dropped
ok points before it had a partial
rally.