Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-17
CURB ISSUES DROP
IN HEAVY SELLING
Leaders Beaten Down to
New Low Marks in Steady
Liquidation.
BY JOHN A. CRoNE.

Special Dispatch to The Star.
NEW YORK, September l7.-Stocks
on the curb exchange today entered into
new low territory for the last two years
or longer as pressure again was directed
against public utilities, Both liquida-
ton and short-selling were encouraged
by the abrupt manner in which the
promising rally in evidence late wednes-
day was checked in the closing trading.
Electric Bond g. Share with an OPEN
ing block of 10000 shares, the largest
IN weeks, broke through its previous
record low price. This incident I'M
settled other power and light issues
Cities Service on lot of 5000 shares
also opened at a new low, rejecting
disappointment over the earning state
ment
In response to inquiries, Electric Bond
& Share officials, many of whose stocks,
both on the curb and the big board,
have been subjected to professional
pressure, let it be known that no change
is contemplated n the common
dividend. which Is being earned three
times. The company has no funded
debt and no bank loans, and for the
IL months ended August 81 covered
preferred dividends, on all issues, Az
times.
Ratio OF current assets to current
liabilities as Of the close Of last week
was even better than the 13-to-1 figure
as of June 30.
Electric Bond a. Share on September
IL had cash, call loans and time de-
posits approximating $4,000 BOO, in
addition to 100000 Of sl1ort-term in
vestments comprised of Government
and municipal bonds. Nevertheless
Der of baby bears" from selling the
stock short.
American g. Foreign Power, Electric
Bond g. Shares chief foreign operat-
ing subsidiary, struck a new bottom
level. Other utilities to break previous
lows included Associated Gas e. Elec-
trio A, American Cities Power & Light b,
American Superpower, Central States
Electric, Electric Power Associates,
United Light 81 Power A and Utilities
Power d Light. Despite declaration
OF the usual common quarterly on
Standard Power q Light it sank to a
new low.
Much Of the weakness in Electric
Bond g. Share, according to traders, has
been brought about by the persistent
declines in American & Foreign Power
despite valiant support given to the lat
ter securities by their market sponsors.
American & Foreign Power soon will
report earnings for the IL months ended
to show no @axofits on the common and
incomplete coverage on the second pre-
ferred stock, 80 per cent Of which is
held by Electric Bond e. Share. For
eign power earned its bond charges five
times over. The worldwide depression
naturally has caused depreciation in
many of the foreign exchanges, which
is one OF the adverse factors in the
American & Foreign Power situation.
The fall of copper to Z cents, the
lowest price it has ever reached in the
history Of the industry, and the re-
ownership asked for Seneca Copper Min
ing were viewed as emphasizing the
need Of genuine cooperation among the
worlds leading red metal producers
Although statistically somewhat better
than copper, the stocks of zinc also
are relatively high A new low quota
ton vas recorded by New Jersey Zinc.
Aluminium Ltd. slid to new minimum
level, along with Singer Manufactur-
ing. down 20 points, and A. o. Smith
Corporation, of s points.