Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-09-28
BEARS HOLD SWAY
IN STOCK TRADING
Eight Per Cent Money Rate
and Calling of Loans Nip
Late Rally.
BY GEORGE T. HUGHES.

Special Dispatch to The Star.
NEW YORK, September 28.-Con-
flicting price movements, with the SELL
ing side predominating, characterized
today's developments on the Stock Ex-
change Liquidation of recent specula-
tive favoriteS was urgent at intervals
and was encouraged by the steady in
crease in the rate on call loans from
the renewal of to 8 per cent for new
accommodations as the market entered
the last half hour.
Although a fair sized rally from the
lows of the day took place in the last
half hour, the industrial section did
not respond as it had on previous occa-
sions to the support accorded when
signs of reaction threatened.
Selling became more pronounced in
the afternoon following the raising of
the rate on call loans, first from the
renewal of per cent to 612, then to z,
then to IL shortly after, and finally
to per cent. This was a direct
response to the calling of some
$4,000, 900 by local banks in prepare
ton for their weekly settlements with
the Federal Reserve and the approach
of month-end requirements on the out
side.
United States Steel dropped point
or so under the previous final. General
Motors was off a like amount. Chrysler
held above Thursdays closing most of
the session. In the midafternoon the
tape was more than 20 minutes behind
operations on the floor. ~~
It was evident, however, from the &C
ton of the prominent induStrialS that
efforts to sustain public confidence at
the current price level were not meeting
with the success that accompanied SIM
liar attempts earlier in the week. Be-
cause of the enormous public participa-
ton during the past two months on the
buying side, there was no doubt that
stocks were now in weaker hands and
on large scale.
General Motors OFF.
General Motors, after opening 2
points higher, dropped below Thursdays
final United States Steel gained more
than a point at the outset, but sub
sequentiy moved sympathetically with
General Motors.
The copper shares were subjected to
heavy profit taking at intervals anc
losses of to 2 points were recorded
in the recent favorites. In view of
all that has been said about the change
for the better, present and prospective,
in the oil industry and the likelihood OF
merger developments which should
work out favorably for stockholders,
the oils with few exceptions acted dis
appointingly Failure of Pan-Amerl-
can issues to do anything along the
line of restoration of dividends brought
some selling into these issues, while
Standard of New Jersey and numerous
others worked gradually lower. Barns
dali Corporation "A" apparently had
discounted the resumption Of dividends
on that issue.
Rails Respond.
It was not surprising that the rail-
road stocks should have held better
than most others when the selling was
at its height. They had done the least
in the prolonged campaign for higher
prices. and were in the best position
to respond to prospects of larger earn
ings, although as a group they lacked
the necessary leadership to encourage
public participation on the buying side.
Rock Island, however, Kansas City
Southern and Missouri Pacific were In
clined toward slightly higher levels.
SpecialtieS that commanded atten-
ton on the side of advance included A.
M. Byers, which was bid up to a new
high at 1875. a gain of 10 points, before
the demand was supplied. Johns Man
Vile gained more than points to a
new top and Gillette Safety Razor
was carried to its best, up almost 5
points. Prospect of Republication of
the financial structure was the incen-
tive for the demand for Coty, Inc, also
at its best.
Industrials Recover.
Sharp recoveries in q number OF
prominent industrials we're accompanied
by further hquidations elsewhere at the
outset of trading today.
The increase Of over $54 100000 in
the Federal Reserves weekly brokers
loan statement, making the fifth con-
Secutive increase reported by the bank,
caused some anxiety but failed to bring
out any great amount of selling.
Market Hardens.
Despite official denials that negotia-
tons we're in progress for acquisition
of Warren Pipe by A. M. Byers, the
latter stock continued in urgent de-
mand and at 1876 was at new high
and 10 points above the previous final.
The market after the first quarter Of
an hour hardened all around.
Hurfic IN Dow Ev%ro