Douglas daily dispatch., 1927-03-16

NEW YORK, March Is [P).-The
stock market developed a pronounced
reactionary trend today despite sporad-
ic efforts of spectators for the adj
vance to rally the general list by bid
ding up special stocks Apart from
further unfavorable developments in
the oil and textile industries, there was
nothing in the days news to explain
the selling movement. which appeared
to represent the correction of top
heavy speculative position.
The money market was undisturbed
by the huge turnover of funds Incl
dental to the new United States gov
ernment financing and March Is tax
payments. Call money was in plenti-
full supply all day at 4 per cent, the
ruling rate of the last few. weeks.
Little attention was paid to the in
crease of $6,60O,OOO in brokers' loans
last week.
Bullish enthusiasm for the motors,
which was at high pitch yesterday,
had subsided materially today, al
though General Motors touched new
record top at 174% and then slid back
to 174, off IA net. U. S. Steel, COM
mon, advanced nearly 2 points to 162,
or within fraction of the record
high, and then lost most of it's gain.
The when issued" stock attained a
new peak at 117% Oils were liqui-
dated freely as a result of the recent
extensive crude oil and gasoline price
cuts, several of them selling around
the years low levels. Atlantic Re-
filming broke over points, to 11O, and
then rallied slightly; General Asphalt
sold off nearly points and Barns
dali "A Indian Refining, Louisiana,
Maracaibo, the Pan-American issues,
Panhandle, Pure Oil, Skelly, Standard
Oil of California and Union Oil of Cal
ifornia all closed point or two lower
Further curtailment of operations
by the American Woolen company
caused increased liquidation of it's Sc
curities, the common at 1871, the low
est price since 1915 which the pre-
ferred broke nearly points to SO, the
lowest in the company's history. Poor
textile business, affecting as it does,
many cities and towns in New England,
undoubtedly was a contributing cause
to the general selling movement.
Westinghouse Air Brake quickly sold
off nearly points on the official de-
nial of .rumors that stock dividend
was contemplated Continental Bak-
ing A appears to have largely dis
counted the cut from SO to $4 in the
annual dividend, closing only IA
points lower. at 55%.
A sprinkling of industrials and spe-
cialties managed to move against the
current trend, several of them reach
ing new high levels. These include
American Chicle, Century r b b n
Mills, Island Creek Coal, Loews and
U. S. Tobacco.
Rails yielded with the industrials,
although Colorado & Southern was bid
up points to SO, and Rock Island,
common, touched 81, both new high
records. Atchison fell back "a points
and New York Central, Southern Rail-
way, Wabash, and several others
yielded a point Or more The decline
on combined January net operating in
come, figures for which were just
made public may have been a contrib
utng factor
Time money and commercial paper
rates were unchanged.
Reactionary price tendencies also
predominated in the commodity mar
kets Wheat declined fraction of
cent a bushel, coffee options closed
unchanged to 20 points lower and raw
sugar declined 1-16 of a cent a pound.
Cotton was slightly firmer on short
covering.
In the foreign exchange market, de-
mand sterling was quoted above $4.S5,
or within a small fraction of the years
high, established in the first week of
January. French francs were slightly
firmer, around 3.91 cents. Alarm over
King Alfonso's condition was reflected
in the increased offerings of Spanish
pesetas, which sold down nearly 10
points to around TIA cents.