Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-31
STOCKS ARE LOWER
ON SHARP SELL|NG|
Whole Market Turns Weak
After. Opening on Heavy
Offerings.
BY GEORGE t. HUGHES.

Special Dispatch to the star.
NEW YORK, July 31.LSelling for
both accounts carried the stock. market
sharply lower today. A number Of new
lows were reached among the leaders,
and the whole list had heavy appear
ance.
The weakness in the stock market CO.
incided with a break in the price of
wheat at Chicago to 48 cents bushel,
the lowest in the history of the Board
Of Trade. Cotton was down 81 a bale
in the closing dealings, with new lows
for all contracts. Bonds were unsettled.
Sterling exchange was down 5-16
cents, Notwithstanding Thursdays
raise in the rate Of the Bank Of Eng
land, and doubts were again raised
about the situation in Germany.
Under the circumstances, the stock
market did not act so badly. Motor
shares were firm all day. Sugar stocks
were in demand in the last hour. Store
stocks made good resistance and even
the steelS held well. The weakness af-
fected principally those stocks which
60 to make up the accepted averages"
Whether this was only coincidence or
not cannot be said.
1t was not the Bethlehem Steel divi-
dend action nor earning statement that
was responsible for the early selling
In fact, the declaration of a 50-cent
quarterly dividend was as much as had
ings were somewhat better than had
been anticipated. The stock ruled
slightly higher in consequence.
The general feeling, however, was
pessimistic and the way stocks yielded
to offerings confirmed this view Agri-
cultural issues were among the weakest,
with both j. I. Case and International
Harvester at new lows. Probably q
good deal Of the selling was for short
account, but it was effective just the
same. It cannot be denied that there
is nothing in the agricultural outlook
to justify a constructive attitude to-
ward stocks representing corporations
whose principal business is with the
farm.
Another outstandingly weak issue was
American Can, which also made new
low for the bear market. The inclina-
ton today was to revise downward
earning estimates and in this case the
bear party made no secret of the fact
that 1t was pressing its offensive. Air
Reduction, Eastman Kodak, Worthing-
ton Pump and Corn Products all gave
way more or less. Allied Chemical had
SeJDdCk dIlU WCSLul6AkONoC GACSlA ~
broke through $50 a share. There was
nothing new in regard to any of these
, companies, but the selling was per-
Sistent
Here and there a speciality held out
against the trend, but was unable to
make much progress. Drug, Inc, was
in good demand around the best levels
of the movement. Safeway Stores
moved up for a time. General Motors
made stout resistance and Chrysler
yielded only fractionally. Prof1t-taking
brought some reaction into the Amer
lean Wooden stocks, but they were well
taken on the decline. There was talk of
capital readjustment which would
benefit the preferred shareholders in
the case of American Wooden and there
was the admitted fact that the industry
has made good recovery.
Railroad shares were depressed by
the omission of the dividend on both
the common and preferred stocks of
New York, Chicago & st. Louis, an
nounced after the close Thursday. This
is the first large Eastern road to pass
dividends entirely and it raised the
question anew of the safety of other
railroad dividends. There we're. how
ever. no large losses among the railway
stocks.