Evening star., 1928-05-18
RAILS HAVE RALLY
|NF|NAL. DEALINGS
Some of Losses of Industrial
Shares Also Are Can
Celed at Last.
BY GEORGE T. HUGHES.

Special Dispatch TO The star.
NEW YORK. May IA wave of
selling swept over today's stock market,
in direct response to the raising OF the
rediscount rate by the New York Fed
eral Reserve Bank. For four hours
prices went steadily lower. Then In the
last hour there came rally, led by the
railroad shares. putting a number Of
the leaders In this group up for net
gains on the session and cancelin2 a
part Of the losses in the industrials.
The buying OF the railroad shares in
the last half hour suggested that a de-
cision on the Chesapeake 81 Ohio ap-
plication to control Erie and pere Mar
quette was near at hand. II so. the
market evidently believed that the ap-
plication would be granted.
The selling was slow In getting under
way. Opening quotations were iower,
but not Importantly So and comment
In brokerage offices was that the mar
ket was standing up very we'll" This
Judgment was premature, as the event
showed After the first half hour OF
trading prices began TO weaken and as
they did so offerings increased and
values began to melt away.
The pressure first appeared against
the motor stocks. General Motors sold
today ex the $325 dividend. Making
allowance for this deduction, 1t was
down about point at the start. as 1t
sold at 1877. From then on. with only
the slightest of rallies. IL sank to l92,
where it was off between 6 and Z points
net. Hudson, Nash and Chrysler were
all weak, especially the first named.
For time the pool In Studebaker sup
ported that stock valiantly. but
eventually the offerings were too large
to be absorbed without concessions.
Mack Trucks rallied In the first Flour
but came down later.
Curiously enough, oil stocks were
especially weak 1t had been supposed
that the oils were in stronger hands
than the majority Of industrials, but
however that may have been, they
came off easily today. Standard On OF
New York. Standard. Standard OIL of
California and Texas Corporation led
the way downward. Standard Oh of
New Jersey might have been rejecting
the unfavorable annual report, but more
likely 1t was simply moving in sympathy
with the rest of its group.
For once the airplane stocks failed
to stand out against the trend. Both
Curtiss and Wright opened with slight
changes. Long before noon. however,
they we're giving good limitations of the
nose-diving act. CurtisS at 140. at which
price 5000 shares changed hands. was
off almost 20 points. Wright at 1913 was
down more than 20 points Considering
the spectacular rise these issues have
had. the losses were not out of propor-
tion, but they did add to the growing
feeling Of concern.
Little support Is Given.
There was little support on the way
down. u. S. Steel made a comparative
ly good showing. II had closed at 1863,
and although it dipped to 144. at which
price one block of IL 400 shares changed
hands, it held better than many others
General Electric, Montgomery Ward
Wooiworth and Westinghouse Electric
were all pressed for sale Radio, at
1921. was Oft 8 points. Heavy realizing
came into all the mining stocks, in
Guiding International Nickel and Amer
ican Smelling and Refining.
The rolls Jared little better than the
industrials. New York Central was the
weakest Of the active stocks. Early in
the session there we're spasmodic at
tempts to bid up special stocks. Dur
ing this period there was a run up In
st. Joseph lead. Another feature was
4 record high for International Harvest
er. These Incidents. however. were lost
sight of In the general market depres-
sion.
Money renewed at 6 per cent. but was
aid 10 be In good supply. calling Of loans
by the banks being balanced by fresh
supplies from the interior