Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-03-23
STOCK PRICES DROP
. ON HEAVY SELLING
Reaction Caused by Unfavor-
able Trade News Over
Week End.
BY GEORGE T. HUGHES.

Special Dispatch to The Star.
NEW YORK, March ga combi-
nation Of adverse circumstances was too
much for today's stock market and it
reacted substantially after early irregu-
larity. Activity increased on the de-
cline and practically all grades Of stocks
were affected.
The market opened irrsgularly lower,
but trading for the first hour went on
very slowly. The list was lower all
around. and yet there was no important
pressure and no sign of liquidation.
Before noon, however, news Of the
weakness in the grain market at Chi
cago brought heavier selling into stocks
and prices turned sharply downward.
Dividend Uncertainties.
In addition to the break in wheat,
foreshadowed by the announcement of
the Farm Board that it would not sup
port prices next year, stocks were faced
with dividend uncertainties in a half
dozen cases. Confidence, too, had been
weakened by the reaction of Saturday.
The main support for the market was
the large outstanding short interest.
AS far as the dividend outlook was
concerned, it had been so well advertised
that extensive commitments for the
decline we're outstanding in all the
principal stocks concerned. These in
cluded, among others, Baltimore & Ohio
and Westinghouse Electric, directors of
which meet on Wednesday, and Ana
conda, the meeting of which is sched-
uled for Thursday. The problem, then,
today was to determine how far ad-
verse action had been discounted in
the price.
Among the weak features were Liquid
Carbonic and United States Industrial
Alcohol, both Of which went to new
lows on the movement. Earnings of the
latter, reported over the week end, were
seemingly less than had been antici-
pated and there was doubt about the
dividend on the former. Westinghouse
Electric came down point or so on
the day, but almost 5 points from the
high of last week. Anaconda sold off,
while Baltimore g. Ohio ranged around
the previous close.
Volatile speciaIties found a thin mar
ket on the way down. Auburn Auto
broke four to five points, and lesser
losses were sustained by j. l. Case and
Worthington Pump. The utilities were
reactionary, which is not surprising in
view of the way they had been bid up.
At the same time there was no real
weakness in this group.
Among the few issues which received
effective support were the sulphur
stocks, Freeport Texas and Texas Gulf,
in which there was evidently organized
buying Motor stocks came down, in
GLIDING General Motors, which had
made q new high in the preceding
session, but none of these was weak.
". Y. Central sold off more than any
oth1r important railroad stock.
Early Market Lower.
Prices ranged irregularly lower in
early trading This was partly in con-
Saturday and partly q reflection Of the
approach of dividend dates for stocks
as to which there was doubt about con-
tinuance of present disbursements.
Standard investment issues such as
United States Steel, American Can,
General Electric and General Motors
were all down from fractions to point.
Westinghouse Electric was sold on the
possibility that the dividend would be
cut from the SIS level at this weeks
meeting. Under 80 today 1t was down
nearly 8 points from last weeks high,
but only a point or so from Saturdays
final. Liquid Carbonic went into new
low ground on the movement In con-
nection with dividend uncertainty.
United States Industrial Alcohol weak
ened further in response to the earn
ings statement.
The railroad shares were irregular,
but not as active as the industrials.
New York Central dropped below ITO,
but Northern Pacific and Great North
ern preferred rallied. Baltimore &
Ohio was fractionally higher.
Specialties Of the type of Auburn
Auto and Worthington Pump broke
rather sharply, particularly the former
J. I. Case, which belongs in this group,
sold of. Utilities held fairly well after
the opening quotations. Volume in the
market as a whole was low, only 300,-
600 shares changing hands in the first
half hour