Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-08-27
STOCKS IRREGULAR
IN HEAVY SELLING
Advance in Call Money Rate
Brings 0utburst of
Liquidation.
BY STANLEY w. PRENOSIL.
Associated Press Financial Editor

Associated Press Financial Editor.
NEW YORK, August 27-Call money
advanced from z to per cent today
and the stock market ran into a heavy
storm OF selling. Early gains of to
Is points were cut down, or wiped out,
and by early afternoon many of the re-
cent leaders were selling / to points
below yesterdays final quotations. In
the early outburst of buying, more than
20 issues. including half a dozen rails,
were lifted to new high records.
Advance Surprises Street.
Wall Street apparently was surprised
at the abrupt advance in the call rate,
as reports had been current for several
days that the heavy month-end set
Elements would cause little disturbance
to the money market, but that pinch
was likely around September Is, because
OF Federal income tax payments and
Government financing.
Outside of the credit situation. most
OF the days news was favorable, direc-
tors OF the New Haven railroad raised
the annual dividend from 81 to IS, and
WICK Chemical new stock was placed on
a ESQ annual basis. equivalent to SIS
on the old stock, which paid 81. The
first 81 railroads to report their July
earnings show a gain of nearly % per
cent in net over the same month last
cent in gross.
Selling stopped for a time in the
late trading when investment rails were
marked up to new highs. Atchison
lead the advance, with jump of 73s
points to 1851: Baltimore 81 Ohio also
reached new high ground at 1902. up
3; Delaware & Hudson's gain amounted
to 53s Royal Dutch Shell, which US
ually moves narrowly. was up 5ss to
touched 405, duplicating it's previous
high mark. The closing tone was ir-
regular.
Opening Is Higher.
Prices bounded upward at the OPEN
ing under the leadership of hiRh-priced
issues. General Electric opened 8 points
higher. Westinghouse Electric 21s and
United States Steel common. Lacka-
wanna. American International and
American Bosch Magnetic showed initial
gains of to IL points. stone & Web
ster advanced 234 points on the first
sale to new high record at 179s4.
Safeway Stores dropped 1.
Some 1rregularity developed after the
opening when heavy profit-taking took
place In the communications shares.
which were the strong features of yes
terday's market, but the main trend
continued upward, with the rails taking
a more prominent part in the advance.
Wall Street apparently was pleased at
the reduction in the volume of Federal
Reserve credit outstanding and by I'M
official predictions that no serious pinch
in call money is likely before the middle
Of next months
Rails were bought as a result of the
excellent character Of current traffic
and earnings statements coupled with
rumors OF more favorable dividends.
Pennsylvania quickly moved up points
to new high at los and St. Paul pre-
ferred touched 65 for the first time.
New York Central. Baltimore & Ohio
and New Haven advanced a point or so.
Commercial Solvents, which did not
sell yesterday. jumped to 10l. points
above last weeks final price to 50o14.
Air Reduction moved up points to q
new high at 202 and American Inter-
national crossed 81 to a new peak,
Several strong spots also developed in
the food group.
International Telephone and Johns
Manville slumped 2l2 points on the
FIRST outbreak of selling and American
Telephone and Rock Island each.
Radio, Corn Products. Consolidated Gas
and few others yielded point or 50.
Foreign exchanges opened steady. with
sterling cables unchanged at s4.8434.