Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-06-14
WAVE Of SELLING
IN STOCK MARKET
Real Liquidation Seen in Re.
action of Shares in To-
b. days Dealings.
BY GEORGE T. HUGHES.
ecial Dispatch to The Star.


NEW YORK, June 14.-The oft
predicted but long delayed reaction IL
the stock market came today. A
wave of selling swept over the list
sparing neither rails nor industrials
neither stocks of investment standing
nor those with only speculative rat
ing.
The offerings were so large and the
declines so sharp that The weakness
could not be explained as a bear
drive" It was real liquidation that
carried prices down, clearly revealing
the hollowness of much of the recent
speculation for the rise. The indus
trials were under pressure directly
from the start. The rails at first made
a show of resistance, but they, too,
gave way before the session was Tar
gone.
High Level of Brokers' Loans.
The commonly accepted explanation
of the weakness was, of course, the
high level of brokers' loans. The Fed
eral Reserve Boards report which
showed an increase in these loans OF
more than S56,000,000 was made pub
lie over the holiday and today was
the first that the market could reject
than Wall Street had expected and the
excuse that much of it was due to
money needed to carry new bond Offer
ings did not avail. Neither was much
comfort cleaned from the fact that
call loans renewed at AN per cent
notwithstanding the deficit in reserves
reported by the associated banks.
The character of the market could
be Judged from the way in which high
grade investment stocks sold off. Gen.
eral Electric lost 8 points, United
States Steel broke below 100, Atchison
below $50, Union Pacific was down
over points, and American Smelt-
ing and Refining the same, all before
noon and before support of any con-
Sequence had appeared. Needless to
say, nothing has occurred to change
the outlook for any one OF these
corporations. The losses represented
readjustment of speculative ideas OF
values and nothing more.
General Motors Battle.
. The battle over General Motors was
particularly hard fought. 1t was Gen.
eral Motors that all the commentators
had picked out to lead the market
into new high ground. The most ex-
trayagant predictions had been made
as to the heights to which this stock
would soar. The stock had closed at
aO3L on Saturday. 1t opened down
a point. Then a great volume OF
stock was thrown upon the market
and the price broke steadily until 1t
was well below the 200 mark. Some
thing of the sort happened in United
States Steel, but there was no such
overextended long" position in steel
as in General Motors.
A long list of the lower-priced rail-
road shares which had been bid up
far above any level that earnings
justified on the ground that merger
DEVELOPMENTS were pending broke
with the rest of the market today.
One of the weakest was Hudson &
Manhattan, down at one time over
3 points, a large loss for a stock sell
ing in the SOS. Hudson & Manhattan
is making steady and satisfactory
progress financially. but the. stock
had been put up on talk Of buying
for account Of Pennsylvania and the
rise had more than discounted the
favorable outlook. Other stocks in
this group to show weakness include
wabash, Texas & Pacific, Missouri
Pacific, New Haven and Missouri,
Kansas, Texas.