Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-01-10
STOCKS IN SLUMP
| ON SELLING WAVE
Flood of Offerings After
Short Rally Sends Prices
TumbIing.
by GEORGE T. HUGHES.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, January 10.-Under
the heaviest selling witnessed yet this
year. prices on the Stock Exchange
broke today at great severity. There
was q momentary rally around noon
when the untitled tonnage statement
Of the United States Steel Corporation
was given out, but 1t did not last:
Stocks recovered q point &c so and
then the food Of offerings carried
them down again.
Stop loss orders were uncovered in
all parts Of the list. Investment is-
sues suffered along with the purely
speculative. Stocks like Brooklyn
Edison broke over 5 points. L. 8.
Steel dipped below TAT after having
sold more than 3 points higher ear
lier in the day. General Motors broke
to 1872. The Steel report stemmed the
selling only temporarily.
The statement showed an increase
In untitled orders of 5lS,430 tons as
of December 81 last. This was more
favorable than the most optimistic
predictions, and brought short COW
ering into the entire list. Steel re-
sponded by gaining over q point and
the stocks which had been under the
heaviest pressure at the opening raj
lied sympathetically.
The first two hours Of the day,
however, witnessed huge offerings for
both accounts with uniform but not
large price losses.
Motors Are Attacked.
The motor shares were the first Oh
iects OF attack. Selling in this part
Of the list was in large volume. There
t1Il <,f III.
earnings of price cutting and OF the
competitive situation generally. The
market had little that was new In
these respects to go upon. but the fact
that IL had shown itself sensitive in
the closing quarter of an hour OF the
day before encouraged the bear party
today.
Nash Motors was singled out because
OF professed disappointment that the
stock had not been put on a regular
So basis instead OF 81 regular and so
cents quarterly extra. No attention
was paid TO the extraordinarily strong
financial position revealed in the hal
ance sheet. At 80 Nash was down
nearly s points from the high yester-
day. but it seemed TO find support
around this price.
General Motors. Hudson. Packard
ana MACK ITUChS were All pressed
for sale. Naturally they gave way.
The significance. however. was not the
fact that lower prices were brought
about. but that the declines were as
small as they were.
Rails Unusually Dull.
The general industrial lis; acted liz
much the same fashion as the motor
stocks. Montgomery Ward, Wool
worth. International Paper, case
Threshing Machine and General Elec
trio yielded u point or more in the
early trading.
Railroad shares were unusually dull.
Most OF them were lower a; the start.
but there were exceptions. New
Haven was higher for a time and SO
were st. Louis Southwestern. Texas
& Pacific and Mangor < Aroostook.
Money renewed at ~ per cent and
was little firfner. The hanks called
$l5,0oo. 600 10 readjust balances at the
Federal Reserve. The new rule re-
Quiring member banks in New York
City 10 report on their reserve position
twice a week instead OF once as for
merly went into effect today.