Evening star., 1931-12-12
CURB ISSUES DROP
| IN ACTIVE SELLING
Markets Weak as Utilities
and Oils Sink to New
Lows.
BY JOHN A. CRONE.
special Dispatch to The star.

Special Dispatch to The Star.
NEW YORK, December 12-Weak
from the start, with pressure directed
especially against the public utilities
and oils, today's curb exchange ses-
sion was more active than usual for
o Saturday.
Electric Bond g. Share. Middle West
Utilities, Electric Power e. Light, Mag
ara Hudson Power and other power and
light leaders dipped to new minimum
marks for the year. Cities Service
around 5i2 was down only fractionally.
Gulf Oil touched 81 as against is clos
ing price Friday of 37l4 and a high Of
751S earlier in the year
The market was unsettled at the start
by the oniss on of the regular common
quarterly dividend of 37l2 cents on
Gulf Oil. which is one of the two larg-
est oil companies in America outside of
the Standard Oil group, 1t ranks as
the third largest crude oil producer in
the world, being exceeded only by Royal
Dutch and Standard Oil Of New Jersey.
In explaining their action, which
came as a complete surprise TO stock
holders, Gulf Oil directors said the
omission was deemed prudent in view Of
existing business conditions
Always regarded as "over-conServa-
tive" in dividend matters, Gulf Oil has
led the miscellaneous oil stocks because
Of its earning power. Last year a poor
period for the oil industry, Gulf Oil
reported net Of S2.35 a common share,
after making inventory adjustments
amounting to S275 a share. In 1929
it earned $3.50 a share. Despite years
of large profits, the company never paid
more than $3.50 dividends, reinvesting
the profits in properties
In June, 1880, the company brought
out $50 600 900 of Union Gulf Corpo
ration collateral trust per cent bonds
to construct a pipe line from the mid
continent to refinerieS at Toledo Gin
cinnati and Pittsburgh. The indenture
provides that collateral of these bonds
must at all times have a market value
of at least 100 per cent of the prin-
Cipal Collateral behind the bond in
cluded $4,000 shares Of Pittsburgh
Plate Glass, 100000 shares OF Alumi..
mum Co. of America, $4,000 shares of
Pittsburgh Coal preferred, 10000 shares
of United States Steel common and
200 600 shares of Pullman, Inc.
On the curb market Aluminium Co.
of America this year has had range
from 224 to 55L Aluminium Co., how
ever, has rather limited floating sup
ply, as most of the stock is controlled
by the Mellon family. The stock eS-
tablished new low today
Pittsburg Plate Glass stock has weak
ened recently after moving down slowly
from high Of 4214 to low around l8.
Pittsburgh Coal, like other stocks in
that industry, has suffered from the de-
preston.
The oils weakened, not only because
of the dividend action by Gulf Oh, but
also on the growing belief that drastic
curtailment must be made Immediately
in oil refinery operations, which are
above those Of year ago. Hurdle Oh
eased to a new low for the year. Stand
ard OIL Of Kentucky was off less than
some others, because its territory in
cludes a large portion of the South,
where seasonal influences do not retard
motor touring at this season. Imperial
Oil, Creole Petroleum and International
Petroleum were dull, but inclined to
heavineSs.
Glen Alden Coal and Lehigh Coal &
Navigation were both fractionally lower.
Among the specialties A. o. Smith Cor
poration, Safety Car Heating g. Light
ing and Singer Manufacturing reached
new minimum price levels, as did Ford
Motor Of France, Ford Motor, Ltd;
Hiram Walker and Prudential Investors.