Evening star., 1927-10-19
WAVE Of SELLING
HITS STOCK LIST
Coolidge Optimistic Outlook
Has Temporary Effect.
Then Values Slump.
BY GEORGE T. HUGHES.

!
| Speci2l Dispatch to The Star
| NEW YORK, October ia storm
of selling struck the stock marke
today. The opening had been higher
under an accumulation of overnight
buying orders. but when these hat
been executed a violent professional
lattack was initiated and prices gave
way all around. Many new lows or
the current reaction were established
and Il few stocks dipped to the lowest
of the year.
For the buying at the opening the
statement accredited to President
Coolidge expressing optimism about
business was the commonly accepted
explanation. However that may be
other matters claimed all the atten
tion in the later trading, and chief
among these was the automobile out
look as embodied in the approaching
Ford competition.
Motors Heavily Sold.
All the motor stocks were heavily
sold. The weakest was Dodge Bros.
the preferred and class "A" stocks
both making new lows since listing
the former below SIS and the latter
below IA. Hudson was another under
severe pressure. and lower levels were
reached by Nash. Studebaker and
Chrysler.
General Motors opened higher on q
larger block of stock. When the rest
of the market began to go down, how
ever, the leader weakened also. About
all that could be said was that there
was better support for General Mo-
tors than for the shares of the inde-
pendent companies.
The fluctuations in the steels were
not as wide. but the order was much
the same as in the motors. An early
show of firmness was followed by re-
newed selling. United States Steel be-
low 143 was at the lowest in weeks.
The same was true of Crucible below
"a. For a time Colorado Fuel held bet
ter, but only for a time. All the recent
industrial favorites slumped. General
Electric. Westinghouse Electric. Allied
Chemical and American Smelling and
Refining were pressed for sale in huge
volume.
Rails Are Lower.
The rails did not sell off as easily as
the industrials. but they practically all
were lower. Wabash held up for u
time under what was evidently special
buying and SO did Erie. Still when
traders found necessary to tighten ac-
counts, they threw overheard railroad
stocks to protect other holdings.
There was no excuse for the selling
in the outside situation. Estimates of
the rate of production of the steel com.
panies were reduced from those of a
week ago. but that was not uneXpect-
ed. Money renewed at per cent
against Az per cent renewal rate on
the day before. Credit was in abund-
ant supply. Just after noon call funds
were obtainable at 3la per cent. 1t
was not money. but the internal condi-
ton of the market with which traders
were concerning themselves.
Rallies InconsequentiaI.
Despite the 31a per cent call money
rate the market continued weak in
the afternoon. Activity fell off at in
tervalS, but the rallies were inconse-
quential Up to this time the low
quotations of the session showed
losses on the day for Allied Chemical
of 6A points, for General Electric of
4ss, for General Motors of Az points,
for Hudson OF Az points and for Steel
of rs points. From these lows there
were. of course, partial recoveries as
short sellers accepted profits.
Light was thrown on profits in the
steel trade by the Republic Iron &
Steel statement for the third quarter.
1t showed profits for the common stock
equivalent to 81 cents share against
$1.S2 share in the preceding quarter
and $2.91 share in the third quarter
of 1925. =
A few stocks stood out against the
trend. Wabash ard Erie did well.
Radio was down only fractionally, not.
withstanding it's swift advance yes
terday. United States Rubber was
bought on reports that the du Points
were interesting themselves in the
company. On the other hand Houston
Oil was lower. and even such a high
grade stock as American Telephone
Il Telegraph dipped sharply. Selling
well below 180, the return at the mar
ket was again over per cent.