Evening star., 1927-10-28
STOCKS IN SLUMP
ON HEAVY SELLING
Weakness Centers in Steel,
Motors and General Electric.
Rails Also Sag.
BY GEORGE T. HUGHES.

Special Dispatch to The star.
: NEW YORK. October 2S.-Thi.
was another day of heavy selling or
the Stock Exchange. Prices for the
industrial leaders slipped off easily
10 new lows on the reaction. More
over. today. unlike yesterday, the
sofferines seemed to be coming from
tired holders anxious to liquidate anC
not in so large "a proportion from
speculators for the decline.
r. Again the weakness converged on
the big three" United States Steel
Genera! Motors and General Electric
Zach of these stocks sold lower than
at any time in the preceding day ana
,the turnover in each was larger. But
the reaction was not confined to TINS
mart of the list. 1t affected pracu-
cal,v every kind of stock in greater
or less degree. The rails resisted
better than the industrials, but they
too were carried down.
Market Always Orderly.
All this having been said, the mar
ket at no time was out of hand Inc
decline was always orderly. and there
We're always buyers for stocks AT con
ressions. nor was there any wide open
Here and there there was eN idence OF
the taking in of short contracts under
scover of the general weakness.
g There was no fresh reason for the
selling. Brokers' loans, as announced
.hv the Federal Reserve after the close
yesterday, showed a good-slZed de-
rrease. Also the decline in the leaders
had already gone long way toward
.atoning for previous eXcesses. steer
st 1S3 was down over - points from
the high of the year. General Flee
tric at 123 was off % points, and Gen
aeral Motors at 127 was down IA points
son the same basis. Admitting that
business is not all that could be de-
sired. it is still reasonably good, money
is inst as easy as ever and stocks are
very much lower. incidentally, they
are passing into stronger hands.
Some Carriers Losses Big.
While. as had been said. the rails
moi better support than the indus
trials. there were some fairly large
losses in the carrier stocks. New
: York, Ontario & Western sold OF over
. points and St. Louis Southwestern
los, as much. Wabash was lower
again. and attention began to be pald
10 the relation between price ana earn
jngs. something that had been entirely
oye,.iool,ed while the stock was going
I'm Erie. Missouri Pacific and Rock
Island held better. but Reading was
freely offered and broke nearly 5
points.
: Among the incidents of the day was
The wild upturn in Rossia Insurance:
Closing around IL, the stock scared
nearly II points on top OF an lS-polnu
advance on the preceding day. Then
- RrOlnQ
rained, Stories of buying for controi
were denied and the gyrations In the
stock explained as the result OF small
floating supply and trapped snort
interest. Another feature was the
break in White Sewing Machine on
the third-quarter earnings statement.
Showing a falling off in earnings.
i Continue to Sag.
The volume of business fell of in
she afternoon, but the market dld
mot rally. On the contrary, prices
Gontjnued to sag and leaders like
General Motors and General Electric
made their low quotations at this
fine. Wabash extended its forenoon
loss and Missouri Pacific. which had
held well earlier in the day. yielded.
Western Maryland had another SINK
ing spell.
The oils were relatively steady,
omission of the extra dividend by
Pure Oil being ignored. American
Smelling & Refining was in fairly
good demand and so was Mack
Trucks, but these instances We're all
ihe more conspicuous because OF the
trend in the general list.
Money renewed Mt 31a per cent and
held there all day notwithstanding
the calling of some s15,000,b00 by the
banks. Plainly money was not
factor in the market.