Evening star., 1930-12-08
BLUE CHIP STOCKS
ARE SOLD FREELY.
Market Leaders Have Been
Sagging in Steady Stream
of Liquidation.
BY CHARLES w. STORM.

Editor the News Service Of Wall street.
NEW YORK, December 8. Lower
prices for stocks and, In innumerable
instances new low records for this
year, continue to reflect the peSsimism
that prevails throughout the financial
district. The so-called blue chip"
stocks, which represent the aristocracy
OF the stock market, at this time are
targets for the professional bears and
the mediums of liquidation by dis
gusted security holders. Much Is heard
about the activity of the professional
bears. but the steady sagging of prices
is inducing some additional liquidation.
The main reason for the heaviness is
the absence of buyers. who seem TO
have once more gone on a strike.
Although retail trade is showing sea-
sonal expansion. industrial activity
continues to slacken, and this latter
condition is causing hesitation on the
part of persons with surplus funds in
considering purchases.
Oil Conditions UnfavOrabIe.
The oil group is again being SUBJ
jected to selling due to the unfavorable
conditions which prevail in the indus
try and the likelihood that the con-
ditions will continue indefinitely Some
of the houses which are known to be
most familiar with the industry are
bearish on the oil stocks for the near
future. While efforts are being made
to stabilize the industry, the con-
tinued sagging tendency of prices of
crude oil and gasoline Is undermining
confidence in the ability of the big
producing interests to cause a change
for the better.
phillips pafroIa,,ro u,ar Tho x,eaLr Roa
ture of the oil shares on Saturday, and
offerings Of the stock were based on
apprehension as to the maintenance of
the present dividend in the face of the
poor conditions. The depression in the
business Is more than offsetting the
plans that are under way to have a
tariff placed on oil.
Railroad Stocks Heavy.
Liquidation is also appearing in the
railroad stocks. Part of the selling Is
declared to represent tax selling, but the
| new low record prices being recorded
for such issues as New York Central
indicate that the unfavorable data being
published in an effort to get an increase
In rates for the common carriers is up
setting the confidence of investors In
the transportation shares.
Exceptions to Heaviness.
The short interest finds little difficulty
in buying stocks with which to cover
| outstanding commitments from time to
time. The success which has attended
the bear party has caused it to become
unusually bold and for that reason the
bears are attacking the high priced
issues which are selling, according to
| them, far above a conservative ratio of
| market price to earnings. In some in
stances, such as in Auburn Motor and
Ingersoll Rand, where the shorts have
become too bold, they have been trapped
| and are being made to pay through
the nose" But the big professional
shorts are standing pat" on their out
standing commitments and do not in
tend taking back the stocks they sold
until the New Year is well under way.
Odds and Ends.
Expectation Is that the Diamond
Match plan for recapitalization will be
declared operative today, inasmuch as
practically all Of the stock needed to
declare the plan operative has been de-
posted. Placing Of the plan in opera
ton Is expected to be followed by the
payment before the end of the year of
a cash dividend of $25 a share as pro-
posed under the recapitalization plan.
A big market for Diamond Match new
stock may start shortly.
Negotiations looking to the merger of
the Phelps-Dodge and Calumet 81 Ari-
zona companies are expected to be re-
newed shortly.
| (Copyright. 1890. by North American News
paper Alliance.)