Evening star., 1928-10-01
STOCK PRICES DROP
IN HEAVY SELLING
Market Leaders Carried Be-
low Saturdays Finals as
Money Rate Rises.
BY GEORGE T. HUGHES.

Special Dispatch to The Star.
NEW YORK, October AFTER start
ing in with spectacular advances in in
dustrial stocks and pronounced strength
in numerous high-grade rails, the stock
market today was called upon to face
the test of 10 per cent call money rate.
Up until the last half hour it resisted
a money charge of as high as per
cent after the renewal rate had been
established at 7. When money went to
the highest since July 2, at 10 per cent,
heavy selling came into such prominent
issues as General Motors and American
Can, carrying them we'll below Satur-
days finals.
Factors in Trading.
Throughout the first four hours there
we're a number of individual influences
to be taken into consideration, ana tney
all served to allay fears of any wide
open break.
They included the money factor,
widespread rumors that powerful in
terests responsible for the gyrations on
the buying side of recent favorites were
as active as they had been heretofore
and reports of pending mergers ana
decentralization plans that arc to work
out favorable for share owners. All
these taken into consideration, the out
side public still showed its Willingness
to follow the line of least resistance.
Both General Motors and United
States Steel sold within striking dis
tance of their highs for all time before
the session was half over. But the
big feature in the motor group was
Chrvsler and when this stock subse-
uuently shot forward to its highest for
the present share capitalization, con-
siderable switching from General Motors
into this issue was in evidence and the
latter stock dropped below the previous
final of 2163s.
Speculative interest centered in no
particular group. The steelS pore tnelr
share in the Improvement, the action
of some of the high grade dividend
having rails was impressive, renewed
operations for the rise carried many OF
the coppers up substantially, while
gains in industrial specialties extended
from one to more than IL points.
In the last named category, A. M.
Byers, Case Threshing Machine, U. S.
Industrial Alcohol and Montgomery
Ward were outstanding features. AT
376 Case Threshing compared with the
previous final of $685. and the demand
was accompanied by intimations OF a
recapitalization. A. M. Byers, still In
fluenced by reports of a merger with
Warren Pipe on share-for share basis,
extended it's gain of more than 18
points last week over points before
the demand was supplied. Montgomery
Ward. responding to the highly favor
able sales figures for September, which
disclosed an increase of q per cent,
was over points higher across 264,
but came off sharply later under profit
taking.
Copper Group.
Anaconda and Calumet & Arizona
were the most attractive of the copper
group, although they failed to monopo-
sold at new high and Murray Corpora
ton was another feature in the motor
group, reaching a new high. Coincident
with strength in Chrysler, its upturn
was considered significant, and talk Of
a share-for-s r-share exchange continued
to be heard.
Rock Island made new high above
129, influenced by the prospect, in view
of its strong credit position, of the CAL
ing of the 6 per cent and 7 per cert
preferred stocks. While an issue Of 5
per cent preferred is expected to take
the place of the present preferred, moth
ing official along this line so far has
been mentioned.
Call Money Advances.
Further calling of loans and the in
creased demand for call money re-
suited in the rate for new accomoda-
tions advancing from the renewal of Z
per cent to 712, and in midafternoon to 8
per cent and later to 81a per cent. The
upward tendency encouraged good
deal of profit-taking and there were a
number of issues, strong during the
forenoon, that reacted well below the
previous final quotation. United States
Industrial Alcohol was one Of these
and Radio Corporation another. Time
money was easier and freely offered at
TIA per cent for all dates.
At intervals the tape was 20 minutes
late in recording transactions. The
volume of business was in excess OF that
of Friday Two late features on the
side of advance we're National Bellas
Hess, whcih made a new high. up IA
points, and National Dairy Products at
a new high, above lis.