Evening star., 1927-03-30
WAVE Of SELLING
in STOCK MARKET
Oils Take Worst Beating.
Motors Hard Hit, But
Rails Hold Well.

III UEUhOE Il. HGUHES.
Special Dispatch to The Star
NEW YORK, March S0.-Tor the
first time in weeks the stock market
today showed itself sensitive to un
favorable developments. A wave OF
selling swept over the entire list al
. most directly at the start, bringing
out liquidation which strength in a
few of the higher priced rails and in.
dustrials was insufficient to check.
The attack developed first in the
oils following the announcement OF
the passing of the dividend on Pan
American Western. This, combined
with an unexpectedly poor earnings
statement, brought an opening break
of seven points in the class "B''
shares. For two hourds thereafter
all the oil stocks were subjected to
pressure and gave ground readily not
withstanding the fact that this group
has not shared in the advance, else
where in the market.
Price Situation Not Discounted.
The result revealed that the unsatis
factory price situation in the oil trade
had not, as many had contended, beer
discounted in the market. Marland
Phillips, Skelly, Barnsdall and other
active issues lost point or more
Marland made a new low for the year
Barnsdall "A" at 291a was only two
and one half points above its 1927
low, although in the meantime the di
vidend has been raised from So tC
$3.50. Standard of New York and
Standard Oil of New Jersey duplicated
their previous lows.
The motor shares were second only
to the oils in the selling. The espe
cially weak point was Dodge Broth
ers with the preferred and common
both sinking to their lowest levels
Trading in the class "a" stock was
very large as the price dipped below
10. Hudson, Mack Trucks, Chrysler
and WillysOverland gave way n sym.
pathy.
Support for General Motors did not
avail to offset the weakness in the
other automobile stocks. General
Motors itself at one time during the
morning broke below ISL, against the
previous close Of 1924. There was
nothing new in the industry to eX-
plain the weakness; it was a condi-
tion within the market itself.
Rail Shares Stood Up.
AS might have been expected, the
railroad shares stood up much better
than the industrialS. There was spe-
cial buying in Missouri Pacific, COM
mon and preferred, which made them
outstanding points of strength. The
report was revived that the recapi-
taIization plan, which it is expected
will provide for the accumulated back
dividends on the preferred stock, is
almost ready for publication.
Some Of the other lower priced rail-
road shares advanced in the face of
the reaction elsewhere.
Among these Kansas City Southern
was conspicuous. Others were, at one
time or another, Bangor & Aroostook
and Texas & Pacific. There was still
investment support for Union Pacific
and New York Central, but Delaware
& Hudson had to absorb realizing
sales and, together with Atchison, had
substantial setback for time.
The steel shares resisted reactionary
tendencies also better than the other
industrials. United States Steel sold
around or just below its previous
close and Bethlehem Steel was well
taken. With regard to the latter, the
possibility of resumption of dividends
was stressed. On the other hand,
practically all the railway equipments
which had been SO strong on Tuesday
went lower today. Pressed Steel Car
was the weakest with q loss at one
time of over points. The utilities
were comparatively quiet, the excep-
ton being Montana Power, which
climbed to new high for the year.