Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-04-28
STOCKS DEVELOP
FRESH WEAKNESS
Bearish Feeling in Street In
creased as Issues Break
December Lows.
BY GEORGE T. HUGHES.

Special Dispatch to The Star.
NEW YORK, April 2s.-Fresh weak
ness developed in the stock market to-
day and shares worked irregularly lower
on moderate volume.
The fact that the December lows had
been broken undoubtedly increased
bearish feeling in the Street. It is
widely accepted theory that once q
market has gone through its old re-
sistance point, as has this one, the de-
cline will be extended further. Selling
on this idea had much to do with
today'S weakness.
There was still, of course, concern over
the dividend outlook in many quarters.
The greatest interest was taken in the
United States Steel meeting, and al
though best informed opinion was that
the regular rate would be paid, the I'M
certainty had an effect on trading.
Finally, the two stock exchange fail
ures still had an effect on the market.
A wide-open break in Allied Chem
ical was the feature of the morning
session. At the annual meeting Mon
day the chairman stated that earnings
to date were IN excess of dividend re-
quirementS. This reinsurance, how
ever, did not help the stock. Perhaps
traders we're Influenced by changes IN
the directorate, but more probably it
gument that the stock was too high on
a yield basis Allied Chemical normal
ly moves over wide range and IL has
disappointed the bears before.
Another weak issue was Union Car
bide, which went to q new low since
the split-up in 1929. This decline was
plainly due to f1rst-quarter results. Nc
Keesport Tin Plate slumped 4 points,
although 1t had been understood that
the business Of this company was very
satisfactory. It looked as though a weak
long position was being liquidated.
The oils were still being pressed for
sale, particularly Standard Oil of Cali
fornia, which, together with Pure Oil
and Shell Union, made a new low
Selling spread to the food stocks, in
Guiding Corn Products and General
Foods, while among the higher-priced
issues Eastman Kodak lost ground.
The market had three dividend reduc-
tons to appraiSe in the afternoon. First
Illinois Central reduced the disburse-
ment on the common stock to a 81 an
nual basis from the 81 previously paid.
This had been, temporarily at least, dis
counted, but the shares rallied slightly
on short covering after the announce
ment
Next Inland Steel put its stock on a
$2.50 annual basis, compared with the
IOEIlcE IdUS Ol S4 year. Inc SUOCk
dropped points before meeting sup
port.
Commonwealth & Southern declared
a quarterly dividend of 10 cents q share
on the common, against Is cents the
last time, so that the stock Is now on
40 cent annual basis. The stock was
down fractionally at the low Of the
year.
Selling in the general list slackened
and there were minor recoverieS in the
stocks under greatest pressure during
the morning. A few new weak spots
were uncovered, one of which was
American & Foreign Power, which
yielded readily. Chicago & Northwest
ern made q new low. General Electric
was heavy, only fractionally above its
extreme low. United States Steel duc-
tuated uncertainty pending the dividend
announcement after the close.
Copyright, 193l)