Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-08-31
STOCKS. DEPRESSED
IN BEAR ATTACK
General Electric Favorite on
Buying Side-GeneraI List,
However, Says.
by GEORGE T. HUGHES.

Specldi DiSpdtcn 10 1ue star.
NEW YORK. August 31.-The stock
market today encountered heavy sell
ing and prices yielded. For once the
device of bidding up one or two Sc.
lected industrials was not effective.
At the same time there was little
weakness and here and there there
We're exceptions to the trend.
The money situation was encourag-
Ing. Call funds renewed at 3l2 per
cent. although it was the last day of
the month and some hardening might
have been expected. The banks cid
call s10.000.000 early in the session,
but the tone was easy.
General Electric was today's favorite
on the buying side, taking the place
hitherto occupied by United States
Steel and General Motors. The price
was run up to a new high for the
present shares, the rise being accom-
panied by more talk about a stock
dividend. Allied Chemical was anoth-
err firm Industrial largely because of
its supposed interest in Steel and
General Motors.
Western Maryland Spectacular.
In the railway list the spectacular
performer was Western Maryland.
Here the assigned reason was buying
by Pittsburgh and West Virginia in
terests. Western Maryland above 50
was up over points, added to the
rise of some ) points on the day be-
fore.
The general list, however, did not
respond to the strength of the lead
ers. Steel was down most of the
session, even allowing for the deduc-
ton of the dividend which came off
the price today. Colorado Fuel and
Iron and Crucible reacted with Steel.
So did Vanadium.
General Motors sold off nearly
points early in the trading. Stude-
baker was weak, while Thinker
Roller Bearing lost 3 points. Hudson
went down with the rest, but Chrys-
Ter and Packard were better sup
ported
The sharpest breaks were in Hous.
ton Oil and in the local fractions.
The former dipped over 6 points be-
fore encountering support. 1t was
gravely explained that there was
little possibility of dividends, which
statement was probably just as cor
rect when the stock was selling SO
points higher. There was a wide
oDen slump in marlborough Rapid
Transit and in Third Avenue, in
sympathy with the acute weakness
III IHe Inlrd Avenue BONDS.
Rails Are ReactiOnary.
The rails were just as reactionary as
the industrials. Seasoned dividend-pay-
ing issues such as Atlantic Coast Line
and New York Central and Chesap eake
and Ohio came off easily. Rock Island
was lower and Missouri Pacific sold
at the low of the movement. There |
was no hasty liquidation, however,
and some evidence was given of sup |
port on the decline. Once the railroad |
shares have measured the July de- |
cline in earnings the chances are that |
new buying will appear.
An interesting incident was the mod. |
crate rally in American Wooden COM !
mon and preferred on publication of |
the balance sheet at the end of the !
half year. That statement showed cash |
alone sufficient to cover all current |
liabilities and revealed an unexpected |
ly strong financial position. That more |
shorts did not take the occasion to |
cover their commitments was prob |
ably due to doubt about the outlook |
for the industry itself, fully as much |
as for the prospects of their corpora
ton.
CLOSING is IRREGULAR.