Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-10-03
STOCKS RECOVER
AFTER EARLY DROP
Market Rebounds in Late
Trading, Following Set
back Due to Loans.
EY GEORGE T. HUGHES.
Special Dispatch to The Star.

special Dispatch TO The star.
NEW YORK, October 3-1nfluenced
at the outset by the unexpectedly large
increase in the Stock Exchange brokers
loans statement for September. the
stock market broke sharply today under
flood of overnight selling orders and
then rebounded later, in many instances
AS readily as 1t had declined.
u. S. Steel, General Motors. Packard
and Chrysler we're we'll above their pre-
vious finals as the session ended. with
the volume in Chrysler reaching enor-
nous proportions at the highest price
at which the present shares have ever
sold Mack Trucks. crossing 100, was up
some points, influenced by merger
runlors.
The rise of the loan item to new
peak of S5.513, 639, 685, and the increase
for the month amounting to S4622O2'-
ESQ, indicated clearly that distribution
during the period covered by the fig
ures had been carried on aggresslvely
and that stocks had been going from
strong into weaker hands.
Some Issues Recover.
At intervals recoveries from the lows
were pronounced. and there were
number of noteworthy exceptions 10
the general trend. but speculative Sentl-
ment nevertheless had been shaken by
the disclosures, which exceeded even
the most pcSsimistic expectations.
General Motors. opening on DOCK
of $4,000 shares, dropped from I'll to
21Ol7. compared with the previous flnal
of 2l4. Hudson Motor was off some
two points at intervals while Packard.
Studebaker and Timken felt the effect
of urging profit taking.
Exceptions in this group were Muir
ray Corporation and the Motor Truck
issues. In the case of the former the
sharp upturn to a new high record was
a direct response to the proposal to
offer additional stock to present share
owners at an attractive figure. RumorS
of an impending merger involving three
prominent truck manufacturers we're
responsible for the demand for REQ
at a new high above IS, Mack Trucks,
up almost 3 points, and Brockway
which continued to be taken not Tar
from it's recent high. Chrysler, the out
standing favorite recently broke from
1884 to 1l9, but quickly rallied.
U. S. Steel changed hands initially
at 1856 on a block of 7400 shares, where
it was down gig points, although it
recovered somewhat later. Colorado
Fuel lost over points, while Ludlum
on the other hand, was bid up to new
high at 80, a gain of almost 6 points.
Support Lays.
Early losses in high-priced industrials
extended from / to points before sup
port was encountered. Montgomery
Ward at $50 recorded one of the sharp
est declines, American Smelling and
Refining at 239 lost points, Interna-
tional Nickel was point lower and
Warner Bros. issues were pressed for
sale. Allied Chemical went lower and
Radio Corporation suffered heavily.
National dairy products still had the
support of powerful pool interests and
carried forward to new top above
1151s.
The renewal rate on call money was
again fixed at per cent. The fact
that there was more than initial re-
quirements available indicated likeli-
hood of the charge for new loans work.
ing higher later in the day. No further
calling of loans occurred and 1t was
evident that the position of local banks
at thu Federal Reserve had been
strengthened.
The Container Corporation stock
6nlclor- it1r IN author