Douglas daily dispatch., 1927-01-26

NEW YORK, Jan. 25. - up - Acute
weakness developed in today's stock
market under heavy selling for both
accounts. While numerous rails were
off one to eight points on the day, it
was noticeable that several motors
and some of the other recent weak
spots were well supported and closed
at moderate gains. Total sales cross
ed the two million mark for the first
time this year.
Recent bullish demonstrations in the
low priced rails apparently had weak
ened TIE technical position of the mar
ket, making it vulnerable to profess
sional selling inspired by a number of
bearish influences. These included the
failure of al Philadelphia Investment
firm, the omission of the Hayes Wheel
dividend, the publication of number
of unfavorable Decemberrai earn
ings statements and the reported stock
market apathy of several operators
who previously had been prominent
on the upside.
Reduction of over $21,OOO,O0O in
brokers' loans last week, ordinarily re-
garded as a bullish influence, today
was construed as an indication that
considerable liquidation of long stock
had taken place last week under cover
of the sensational advances in a few
rail shares. After the close of the
market the directors of the Norfolk &
Western raised the annual dividend
rate from 81 to So, although generous
extras had been declared from time to
time in the past.
U. S. Steel corporation reported the
unusually large total earnings of $685.
502,52 in the fourth quarter, as
against $52,626,S26 @n the preceding
quarter, and $42,2SO.465 in the last
quarter of 1925. The regular quarterly
dividend of $1.75 was declared on the
common stock. U. S. Steel closed frac-
tionally lower at 155.
Erratic fluctuations took place in
several of the so-called merger rails.
Wheeling & Lake Erie opened AZ
points lower at 81 quickly rallied to
Sc, sold down to so, and rebounded to
SLY The preferred closed IL points
lower at 60 after fluctuating between
5S1a and 631. Declines of three to
nearly five points We're recorded by
western Maryland common and second
preferred. Lehigh Valley, New York
Central, Atlantic Coast Line, New Ha-
ven, Peoria & Eastern, Pere Marquette
and Pittsburgh & West Virginia.
weakness of Chesapeake & Ohio,
which broke over seven points to 1872,
probably was inspired by reports that
large amount of new financing
would be necessary if the road was
made the central unit in the new Van
Sweringen combination which is un-
derstood to be under contemplation.
Among the popular industrials SELL
ing pressure was most effective
against American Smelling, General
Asphalt, Remington Typewriter, Case
Threshing, Columbia Glass, Loose
Wiles Biscuit, South Porto Rican Su-
gar and United Drug, all off three to
eight points net. On the other hand,
such recent weak spots as Hudson
Motors, Mack Trucks, Radio Corpora
tion and Bangor & Aroostook closed a
point or two higher Call money held
steady at per cent all day. Time
money and commercial paper rates
were unchanged.
A sharp advance i'm wheat prices,
based largely on reports Of increased
export sales, featured the irregular
commodity markets. Cotton futures
sagged five to ten points and coffee
prices rallied slightly and raw sugar
was unchanged.
Spanish pesetas crossed 1910 cents
to the highest price since last June,
and then lost their gain in the foreign
exchange market. Demand sterling
held fairly steady around $4.S4B and
French francs just above S.95 cents.