Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-03-21
Stocks IN RALLY
AFTER EARLY DROP
:,
industrial SpeciaIties Break
Badly But Rails Lead
| in Recovery.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, March 21.--Following
period OF weakness today. in which
industrials OF the speciality type broke
badly under a flood Of selling, the
stock market recovered sharply under
leadership of the railway stocks. There
was nothing in developments over the
week end to bring about change in
sentiment. The market had been
going ahead with only slight Interrupt
tons. and it reached the point where
reaction was essential to correct the
technical position.
Speciality stocks which had been to
the front in the upward movement
were those upon which the early at
tack centered. The spectacular Hous-
ton Oil broke as violently as it had
been bid up when speculation for the
rise was at its height. The decline eX-
tended 10 points before support was
encountered, and at SO II compared
with the top of 12Ss4. Other oils were
down anywhere from half point to 2
points, with Atlantic Refining and
General Asphalt the chief sufferers
Houston Oil subsequently rallied, but
was still substantially lower on the
day.
The manner in which Warner Bros.
Pictures class "A" was offered down
TO new low prices for 1927 recalled to
mind the excited speculation which
followed the announcement several
months ago of the new vitaphone.
Many were of the opinion that the
market for the stock had more than
discounted its possibilities.
Continental Baking class "a, still
feeking its proper level following the
L., al Iitsi-
dend rates. was carried to 4Sh as
against last weeks final of so. Oper-
atoms for the rise in international
Combustion were abruptly suspended
and profit taking carried the price
down over three points. Large
blocks of American Brown Boveri
We're offered at bottom figures for
the year. Baldwin Locomotive just
above 1S5 compared with Saturdays
final of 1919. General Railway Sig
nal was off more than four points at
Intervals.
The inlpressiveness of the recovery
which set in after the first hour or so
in the better grade rails left the i'm.
, preston that Wall street thought the
market for these stocks had not fully
discounted favorable conditions. pres
ent and prospective, In the rail situa-
ton. Lackawanna maintained It's
place of leadership, moving into new
high ground. New York Central sub
sequently sold well above Saturdays
final. Southern Railway was actively
bought at advancing prices, and the
same was true OF Atchison. Norfolk
& Western, after opening more than
point higher, had to absorb profit TAX
ing, but then recovered sharply.
Although there was nothing en-
couraging in the copper metal situa-
ton, the special buying which has
been in progress for the past week in
Chile Copper kept on. carrying the
price to a new high above 3S. Amer
lean Smelling and Refining. Anaconda
and Kennecott all were higher.
Leading industrials like United
States Steel and General Motors bore
their share in the weakness, but show
red their ability to recover. Other
motors, however, were pressed for
sale most of the time. with Hudson,
Mack Truck and Studebaker of a half
point or more. Chandler Motor, an
exception, was responding to the out
look for improved earnings.
The equipments under the lead OF
Baldwin were carried down ] u
points, with General Railway Signal
subjected at intervals to heavy
realizing.