Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-01-05
PRICES SAG BADLY
ON STOCK MARKET
Losses Almost Universal.
Recent Speciality Favorites
Drop Most.
BY GEORGE Il. HUGHES.
Special Dispatch to The Star.


NEW YORK, December 5.-The
stock market broke sharply tocay.
Heavy selling was encountered d.
rectly from the start and prices lost
ground rapidly. The stocks which had
been bid up most recklessly in recent
sessions suffered the most. but losses
were almost universal to greater
or less extent.
The ostensible reason for the break
was the increase in brokers' loans an
nounced by the Stock Exchange after
the close yesterday. The total for
December was not only q new high
record for all time, but represented
a larger increase than the aggregate
of the weekly reports of the Federal
Reserve Board. The two compilations
do not cover exactly the same field,
but the street was unpleasantly sur.
prised. nevertheless.
Call Money at AZ Per Cent.
1t made no difference in the call
money market. Loans were renewed
at Az per cent. which was the low
rate of yesterday. 1t has been urged
all along that the total Of brokers'
loans was not disturbing as long as
call funds were obtainable on such
easy terms. 4 MS SORT Oh reasoning
did not reassure today.
The wide-open breaks were. as
always, in the volatile issues. For
instance, Greene Cananea at 1879 was
down 10 points from the preceding close
and over rs points from the high of
yesterday. This. Of course. repre-.
scented only readjustment of an over
extended speculative account. 1t had
nothing to do with the trade position
in general or with the situation of the
company involved.
The standard shares were offered I'm
large blocks at sharp concessions.
General Motors dipped over three
points before the day was half over.
U. s. Steel was down three points at
las. General Electric lost over three
points. Montgomery Ward, which
had attracted a large following on
the upward movement, was pressed
for sale.
Rubbers and coppers generally were
weak. American Smelling and Re.
timing was down at one time five
points. Calumet and Arizona slumped
a point or more between sales. All
the rubber stocks which had been
leaders of the rise earlier in the week
came down easily.
Nothing in Business News.
There was nothing In the business
news 10 induce selling. Reports from
the steel centcrs were favorable, un.
oi1cial estimates were that the I'M
filled tonnage statement for Deem
Der would show gain for the month
OF over 100000 tons, the largest in
crease in a single month since De-
cember, 1925. The steel corporation
also was reported operating at 10
per cent of capacity against 60 per
cent during the preceding week.
Railroad shares held relatively bet
ter than the industrials. Before the
liquidation became extensive New
Haven had made another new high.
the best since 1916. as 1t sold around
IS. There was active buying of st.
Louls-San Francisco likewise early
in the session. The new financing
plan OF the road will be announced
next week and the stock was evil
IDENTIFY Interpreting the plan favor
ably. In general. however, the rails
sold off with the rest OF the list. The
losses were not so large because the
rails had not gone UP as much.