Evening star., 1927-10-03
taking Of PROFITS
| ABSORBED BY LIST
Reactions Unimportant and
n New Buying Is Vigorous
RI in Some Shares.
g BY GEORGE T. HUGHES.
special Dispatch to The star.

Special Dispatch to The star.
NEW YORK, October 3.--The stock
market encountered heavy profit-tak
ing today, consequent upon last
weeks rapid rise which eliminated on
Saturday. Offerings, nevertheless
were well absorbed. The reactions
were comparatively unimportant and
meanwhile new buying went ahead
vigorously in other parts of the list
Money renewed att. / per cent, un-
changed from Friday, despite the
deficit in reserves reported by the
Associated Banks. Time money was a
shade easier and there was still no
concern, at least among traders. over
supplies for speculative purposes.
Some attention was paid to trade ad-
vices. but generally only such as
Eould be interpreted favorably.
-. Rail Shares Prominent.
= Railroad shares were prominent
riSht from the start. The leaders in
cluded such seasoned dividend payers
as Chesapeake & Ohio. Canadian Pa
ciic, Union Pacific, Norfolk & West
ern. Illinois Central and New York
Central. Some of these made new
high records of one sort or another.
Canadian Pacific. above 200, was ut its
best since before the World War.
Chesaneake & Ohio scared to the high
est in its history. So did Norfolk &
Western. Illinois Central set up "a
new record since 1912, while New
York Central reacted only slightly
from the top of Saturday, which was
the best since 1906.
i. The leader of the low w-priced group
WAS New Haven. which ran up 2
points under a heavy turnover. 1t is
hard to realize that New Haven had
the best August earnings ever re-
ported, yet such is the case, and talk
of a dividend on the common stock
some time next year grows more con-
fident. AS to the others, Chesapeake
& Ohio is in the same class with New
Haven as far as August income is
concerned, while the dividend outlook
is for an increase from the present
$40 to q $12 annual basis.
There was nothing new in the rail-
road situation itself to stimulate buy
ing of the stocks today. Car loadings,
while up on the week in the last
report, are still below the correspond
ing period of year ago. The fact is
that the seasonal increase has Jagged
unusually far behind in 1927. Buyers,
however, are stresSing the point that
1926 was an abnormal year and that
a comparison with 1925 is fairer. In
addition. the rails have farther to go
before they sell on a parity with the
industrials.
i. Industrials Have Strong Spots.
The industrials were more illegular,
but there were plenty of strong spots.
Motor shares did better, including not
only General Motors, old and new,
but the independents, especially IIud-
son and Chrysler. Hudson reports
the largest third quarter output in its
history, and Hudson for a long time
has seemed to be behind the market.
Mack Trucks continued it's advance,
crossing the 10 mark.
United States Steel reacted after an
early display of f1rmness. but at 1919
It was still up points from the low
of last week and some reaction was
to have been expected. Postum Cereal
stood out strongly in the general in
dustrial list. Calumet & Arizona was
the star performer in its group, up
nearly points.
The utilities were not overlooked.
Special buying went ahead in North
American, putting the stock up to
new high for the year. There was
also a sharp rally in the local trac-
tions, Brooklyn Manhattan, Inter
borough and Manhattan modified
guaranteed, for which there was no
ready explanation.