New Britain herald., 1930-08-08
Sudden Storm of Liquidation On Long Becalmed Stock Market Is
 Depressing to Many Big Issues
Selling Is Heaviest Experi- enced in Some Days Be-
 cause of Many Dividend
 Cuts.

New York, Aug. 8 LP - The long becalmed stock market was driven far out of the course charted by the bull leaders in a sudden storm of liquidation today.
 Important stocks generally were depressed ? to 8 points or more, as the heaviest selling experienced in some days was loosened by such un- dermining developments as dividend cuts, slackening steel mill output and sharp break in cotton.
 Sales during the first two hours aggregated 1,37S,000 shares, exceed ing the average turnover for the past four full five hour sessions. Rails and utilities were under par ticularly heavy pressure. Real liquid ation of long holdings of stock was said in brokerage circles to be in substantial volume, but professional traders were increasingly active on the short side of the market.
 Carrier Stock Flat
 The loaning rates indicated that the rails, in particular, were choice targets Of the professional bear ele- ment. Practically every carrier stock was loaning flat.
 The speculative fraternity was still greatly confused over the probable effects of the severe drought. The government cotton reports as Of Auc 1 placed the crop about 3O0,o00 bales higher than generally expect ed, which caused Immediate declines of S2.50 to $3 a bale in the New York futures market.
 Although wheat made good pro- gress during the early hours or trad ing the collapse in cotton brought moderate reaction, even in that mar ket.
 It was estimated that L. S. steel mills had slackened from 64 per cent Of capacity a few days ago to 61 per cent. The passing of Warner Bros. common dividend, while lumored for several days, provided shock in some quarters. for many traders had felt that at worst the cash payment wouls be reduced, or that 1t would be substantiated for scrip.
 The rails were liquidated on the theory that reduced crop move ment would seriously impair earn ings. as that in addition the roads would be asked 10 reduce train rates to relieve the agricultural areas.
 Utilities Feel Pressure
 The utilities have been under al- most steady pressure for several days. resulting from the tendency to- ward lower power rates. Owing to heavy fixed charges, only moderate reductions in rates might sharply re- duce earnings per share. and the utility shares have still been selling at considerably higher ratios to earnings than other groups as dur ing all bear movements, unsettling rumors were circulated, such as re- ports that investme ent trusts were li- quidating Electric Power stocks, but confirmation was lacking.
 The decline carried prices to the lowest levels since the forepart of July, most pivotal stocks breaking lIlTUusA tI4tIl leGtlIL ieolStdL4Nc points. Save for the lower levels in June, stocks generally were re- duced to new low levels for the year.
 Such stocks as L. s. Steel, Radio and Standard of N. J., which have been held fairly steady during re- cent selling, dropped 3 points or more. General Motors and General Electric lost about 2.
 Warner Bros. dropped about ' points. going below 30, or about so points under the years peak. Bullard was also a weak spot, dropping as much, on a poor earnings statement, and reaching levels about 50 points from the years top of 74.
 American Telephone, Dupont, Byers, Stone and Webster, North American Corn Products, Eastman, Atlantic Coast Line, American Can, and aVnadium lost to $. Worthng- ton Pump lost more than S. Losses of to points in the rails were numerous.
 Call money renewed at per cent again, after two days of re- nevals at 1-o.
 THE MARKET AT 2:OO-3:oO P. VI.