Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-02-27
STOCKS ARE LOWER
IN QUIET MARKET
Bear Traders Take Advan-
tage of UnfavorabIe News
in Business World.
BY CHARLES F. SPEARE.

Special Dispatch to The Star.
NEW YORK, February 27-Whether
it was the passage of the bonus bill by
the House over the Presidents veto, the
severe break in grain, the distressing
February statements of the railroads or
further dividend reductions and I'M
favorable industrial corporation state
ments that affected stocks today, the
fact was that there was drying up OF
bullish enthusiasm and the quietest
market since the middle of the month
Attempts were made to revive issues
that have been notably strong for
several days, but the profit taking and
vigorous selling for professional account,
much of which came through houses
that have Southern connections, check
ed such operations The extent OF the
average advance recently was in itself
a logical reason for a quieter and
weaker market.
Bonus Action.
Inasmuch as the reaction late Thurs
day conceded with the Presidents veto
of the bonus bill, which indicated the
amount of new financing necessary IN
order to carry out the provisions OF the
measure it was assumed that some OF
todayS selling was based on the favor
able consideration by Congress OF this
bill However, Government issues
showed more steadiness after an initial
decline. The situation in the grain
markets was again looked upon as
serious, with Kansas City banks de-
manding margins on May wheat double
those previously quoted.
Railroad statements for January,
showing net losses ranging from 80 TO
70 per cent and additional dividend re-
duction, including that on Gillette
Razor, gave material for the bear ele-
ment to work on. They made some
Roadway during the morning, but were
compelled to abandon their position
later in the day.
The early pressure was mainly against
the public utilities, where a weak bull
position was supposed to have been
built up during the rise of the last few
days. At one time there were losses
from the high figure of the week OF
points in American & Foreign Power,
8 in American Power g. Light, 4 in In
ternational Telephone and American
Telephone Telegraph and 2 to ;
points in Consolidated Gas, Public
Service OF New Jersey and North
American.
While these shares were declining,
bullish operations were developing in
the coppers, based on the indications of
another advance in the metal. Anaconda
advanced to a new high for the year,
above 43, carrying the rest Of the group
with it. There was at the same time
decided strength in Columbia GRAPHIC
phone, National Cash Register, Mont
gomery-Ward and Gillette Razor. Gil
lette had lost point earlier in the day.
Prices ranged lower in active liquida-
ton, following a firm opening. The
turn came after the first quarter hour,
and reflected, among other things, the
deferring of the dividend by Gillette
Safety Razor directors. G lille tie
dropped over a point at the start,
though part of the loss was later re-
traced.
United States Steel, selling ex-
dividend, was a fraction higher at the
start, but later came down nearly a
point from its best price of the day,
to show a small net loss. Bethlehem
steel, off 70, and Vanadium, off rs,
showed the trend in the steel shares.
Call money renewed unchanged at
IL per cent. During the first half
hour trading amounted to over AGO.
600 shares, compared with 100000 in
the like period on Thursday. How
ever, activity increased tremendously
by that time.