Douglas daily dispatch., 1927-04-26
HEAVY SELLING
CAUSES STOCK
MARKET SLUMP
(By the Associated Press)
ock market averages:

NEW YORK, April 25 R.-Heavy
selling for both accounts brought
about one of the sharpest reactions of
the year in today's stock market Net
losses in scores of issues, including
some of the recent leaders, ranged
from 1 to nearly points, with drop
of 1872 points in Commercial Solvents
B. Several of the motors, oils and
specialties touched new 1927 lows. In
many banking quarters the reaction
was regarded as consequence, at
least in part, of topheavy speculative
position resulting from the recent sus-
! tanned advance in the prices of many
issues.
In commission house circles there
was tendency TO attribute the selling
to the steadily increasing estimates of
property damage resulting from the
floods, the Chinese and Mexican situa-
tions and the reported increase in
brokers' loans. General Motors dropped
from 1913 to 1874 despite the publica-
tion of quarterly report showing
$3.50 a share earned on the common
stock with total net $7,6S9, 100 above
the first quarter of last year u S.
Steel fell to 16S3s, closing at the bot
tom, as hope was abandoned for any
thing more than the Inauguration of
dividends at the rate of 81 annually on
the new stock at tomorrows meeting
of the board of directors. Baldwin
closed nearly points lower at 1872 and
Dupont showed an extreme decline of
S& at 23712.
in 11n 1.1Z Of
with such suddenness as to necessitate
the sending out of hundreds of margin
calls after the close. Final prices as
rule We're at or near the low levels of
the day. Renewal of selling pressure
against the oils followed the publica-
tion of Marlands quarterly report,
which showed earnings of only cents
a share as compared with $1.79 in the
same period of last year. Marland,
Phillips, Standard Oil of California,
Skelly, Pure Oil, the Barnsdall issues
and a few others sank to new 1927
lows, but some of them subsequently
rallied on short covering.
Selling pressure was particularly
acute against American Radiator,
American Smelling, Colorado Fuel,
Foundation company, General Railway
Signal, International Silver, Loose
Wiles Biscuit, National Lead, South
Porto Rican Sugar, Stewart Warner,
Wick Chemical and woolworth, all of
which sold down 8 or more points.
International Nickel and General Elec-
trio touched new high levels for the
year and then lost all their gains.
Rails yielded with the industrials,
oil Tal 10
independent strength by soaring to
new high record at 215 and then eas-
ing to 211A, up 5 Il net. Some of the
southwestern shares, which were
strong last week, were liquidated
freely on reports of serious flood
damage to tracks and other property.
Atchison broke 51A points to 1907,
then rallied about a point, while At
lantic Coast Line, Rock Island, Lacka-
wanna, Denver and Rio Grande West
ern preferred, Gulf, Mobile and North !
ern, Lehigh Valley, Katy common,
the Missouri Pacific issues, New York
Central, "Neckel Plate" common, Read
ing, Texas ana Pacific, Wabash. COM
mon and Western Maryland second
preferred all closed 2 to points lower.
Call money held steady at 4 per cent
4
all day, although banks are reported
to have called about $15,OOOOO in loans.
Time money and commercial paper
rates were unchanged. The weekly (
federal reserve report on brokers'
loans showed an increase of $15,50S,O0O
bringing the total to $2,S7S, 12S, 900, a |
new high record for the year.
The principal commodity markets
moved within rather narrow and irreg- |
ular limits, with no changes of con-
sequence. Sensational trading inl
Italian exchange, which sent the Ira
up over 40 points to close to 5% cents,
the highest since 1920, overshadowed
all other developments in today's for
eign exchange market. Demand ster-
ling and French francs showed littlel
change around $4.S5 5-16 and 3.917a |
cents, respectively.