Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-04-10
STOCKS IRREGULAR
ON DROP IN. RAILS
Sentiment Toward Carrier
Issues Continues Bearish.
New Lows Recorded.
BY GEORGE T. HUGHES,

NEW YORK, April 1o.-Continued |
weakness in the railway shares and tr-
regularity in the industrials character |
lied today's trading in stocks. Carrier
issues were heavily sold, with practical !
ly every active issue at new low for
the year and the average for the group
at new low ground for the bear market.
How much of the selling of railroad
stocks, which dominated the market
during the morning hours, represented
actual liquidation and how much was
offerings for short account 1t Is i'm
possible to say. Sentiment toward the
rails was pessimistic in the extreme,
without, however, any new facts being
brought to life. Dividend reductions
were freely predicted, but downward re-
vision in disbursements had been ex-
pected ever since the New York Central
cut its rate. Car loadings for individual
roads reporting by the week revealed
no change in the recent trend.
Stockholders Discouraged.
The fact is that holders of railroad
stocks are becoming increasingly dis
couraged, not only over income state-
ments and traffic returns, but over the
action of the market itself. This feel
ing is being capitalized by operators
for the decline.
The better grade of railway stocks
were offered the most freely today. New
lows. with losses Of to 5 points, were
recorded in Atchison and Union Pacific.
Others that set new minimum prices
included New York Central, Nor1olK a.
western. Southern Pacific, Nickel Plate
and. in the more speculative list, Erie,
Missouri Pacific and Missourt-Kansas-
Texas preferred.
Motor Stocks Steady
Considering the pressure on the rails,
the rest of the market did surprisingly
we'll Motor stocks were steady, re-
spending to the declaration OF the
regular rate by Nash Motors. For the
quarter ending February %, that com
pany earned 40 cents a share against
IS cents a share year ago, but ltS
cash position was so strong that Inc
directors felt justified in making no
change in the dividend. Prosperity OF
the gold mining industry in these dark
DAYS In other businesses was empha-
sized by declaration of an extra 81
dividend by Homestake Mining.
The unfavorable items included the
cutting of the rate by California Pack
ing to a 50 basis against 81 previously
paid and the passing OF the General
Gable preferred dividend. Stocks OF
both of these companies sold on. Beth
lehem Steel was weak, raising renewed
doubts about the dividend on that stock.
On the other hand United States Steel
was firm as were American Can and
General Electric. A new low in Allied
Chemical, a decline in Eastman Kodak,
and unsettlement in Johns Evansville
were accompanied by pronounced
strength in American Tobacco Shares,
both classes of which made new highs
for the year.
Early Market Higher.
The tobacco stocks, buoyed upward by
a retailers agreement to increase the
price of standard brands of cigarettes,
were the feature Of firm opening.
American Tobacco A and B stocks
gained and points, respectively, to
new high levels for the year. LOrillard
and Reynolds B had smaller gains. 1t
Is expected that the action of the re-
tailers will be followed by price in
crease by the manufacturers.
Elsewhere trading was quiet, but gen.
orally at higher levels. United States
Steel, after a fractional advance, sold
on to a small net loss. The rails ran
counter to the trend Of the market,
with a few exceptions. Erie, Missouri
Pacific, Nickel Plate, Southern Pacific
and Union Pacific all hit new minimum
prices, but there were small gains in
Atchison, Illinois Central, Missouri
Kansas-Texas, Norfolk g. Western,
Pennsylvania, Southern Railway and
Northern Pacific.
During the first half hour trading
amounted to zoe, 900 shares, the lowest
since a week ago.
Active industrials were firm, especial
" American Can, ]. I. Case, Eastman
Kodak, Fox Film, Radio and Mont
gomery Ward.
The motors were generally stronger,
with hopeful batch Of earnings re-
ports Auburn was points higher at
one time, but later dropped to loss
on the day. General Motors. Hupmo-
bile, Nash and Studebaker were higher.
Utilities also were firm. OIL shares
were duIl