Evening star., 1937-10-24
u. S. Steel Crashes to New
Low as Mill Rate SIumpS
Further.
FAST START PUTS TAPE
FOUR MINUTES BEHIND
Rail Issues Move Lower, With
I. c. C. Decision Already Dis
counted-1, ,565,O2O Traded.
By FREDERICK GARDNER,
Associated Press Financial Writer.

|
NEW YORK, October 23.-An ava
lanche of selling, touched off by rails
hit the stock market today and lead
ing issues tumbled as much as II
points.
Yesterdays late> decision by the
Interstate Commerce Commission ap'
proving higher freight rates appeared
to have been discounted by the re.
cent brisk upturn in the transporta-
ton group, brokers said, and holders
began to unload rapidly at the OPEN
| ing.
Forecasts of sharply lower mill op-
Grating rates for the steel companies
next week helped to put shares ir
this group on the skids and U. S
Steel crashed through support levels
to a new bottom for the past year OF
longer.
The dumping move in the first half
hour was so speedy the ticker tape
Jagged minutes behind. The pace
slowed later but the recording ma
chinery again was in arrears in the
final period Blocks of 1000 to $4,000
shares changed hands on the re-
treat.
Leaders Late in Opening.
Santa Fe, Union Pacific and N. Y.
Central were from 25 to 80 minutes
late in opening. Initial losses in these
were from around to 6 points and
were extended considerably before the
finish.
1t was one of the broadest Saturday
markets in the history of the stock
exchange. 920 individual issues chang
ing hands. Transfers for the two
hours totaled 1,565,020 shares, the
largest aggregate for a brief session
since March 6. The Associated Press
average of so stocks was off "a points
at 463. 1t was IL points above the
low mark for the year.
The short-lived cheering over the
I. C. C. decree was attributed partly
to the realization that the rate boost,
which will amount roughly to SAT, $780,
900. will far from compensate the
roads for increased wages and other
boosts in operating expenses.
Farm implement shares dived with
other categories Motors were also
soft. Notwithstanding continued gains
in automobile output over last year
Unsettlement in the utilities, without
any particular news for this depart
ment, was a disturbing influence.
Rail Bonds Drop.
Carrier liens broke fractions to
around 8 points on heavy turnover as
the bond market gave ground before
a renewed outbreak of selling.
The Associated Press average for 20
railroad issues dropped 16 to 1872.
Medium priced and defaulted issues
were the principal targets for selling.
Baltimore g. Ohio SIS, series ''F,"
dropped 3A to 5211s and MKT SIS
were off 4 to 50A. Other losers in
cluded Delaware & Hudson Is at 721a
off 2la; Illinois Central 434s at As. off
334, and Southern Railway IS at $685.,
off 39s.
Federal loans were mixed with price
shifts in both directions confined to
5/32 of a point. Principal activity
centered in the longer term Treas
uries.
Other sections of the domestic cor
porate list tended generally lower,
although most losses were held to frac-
tions. The average for 10 industrials
declined 6 of a point to 984, while
10 utilities stood at 91.8, off a of a
point. Such issues as Bethlehem
Steel 4As, Paramount Pictures IS,
Shell Union 3las, International Tele-
phone Az per cent debentures, In
ternational Paper IS, Ohio Edison As
and WalWorth As declined.
Curb Market Eases.
The curb market stumbled into
lower grounc - moderate volume. Ac-
tive issues were mostly off fractions
while wider losses occurred principally
in higher priced shares.
Some of the widest declines were in
Aluminium Co., 921a, off Q; American
Cynamid "B." 231a, off 2; Gulf Oil,
80, off 1; Hummel Oil, 62A, off /;
United Light & Power preferred, 1878,
off "a, and New Jersey Zinc, SO,
of 8.