Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-03-04
STOCKS DEPRESSED
IN HEAVY SELLING
Weakness in Rails Quickly
Spreads to Industrial
List.
BY GEORGE T. HUGHES.
special Dispatch to The star.

Special Dispatch to The Star.
NEW YORK, March A wave Of
selling descended upon the stock mar
ket today and broke prices down to
new low on the current reaction. The
rails gave way first, but the weakness
soon spread to the industrials.
The market had a number OF I'M
favorable developments to appralSe, IN
Guiding another decline in car loadingS
and various dividend omissions and re-
auctions. Sentiment was against prices,
the common opinion being that there
was nothing to put the market on. In
consequence stocks were freely offered
for both accounts.
Car Loadings OF.
The rails were under pressure from
the start. In the first place, they had
made a poor show OF resistance IN Inc
two preceding sessions, and, seconoly,
the weekly report on car loadlngs
showed a falling off for the seven-day
neriod ending February 81 of 6,75l cars
from the preceding week. Closer analy-
sis would have revealed that all OF this
loss and more came in one item, name
Nv, coal, but the Street" was in no
mood for analysis. 1t was frankly
weekly reviews of the iron and steel
industry were more optimistic IMAM
otherwise, but they, too, were ignored;
The Iron Age spoke Of the sustained
though gradual expansion in the total
CONSUMPTION of metal" It put the
average rate of operation for the coun-
try at large at So per cent against 81
per cent a. week ago and acded tnat
further gains in the general average
are looked for during the current
month"
Selling of the rails affected the entire
group and some of the losses were size
able. Atchison, breaking through 1So'
was of points on the day. Union Pa
cific was down nearly points, New
York Central, points, and Baltimore
e. Ohio about as much. Some OF this
was due to short transactions, but some
of it looked as though it was real liqui-
dation.
Rally at Midday.
Directors of the Rock Island declared
a quarterly dividend of SIPS on the
|, common stock, putting the shares on
SIS basis against 81 previously paid. A
reduction had been expected. The only
question was as to the amount, and the
stock had apparently discounted the
news. Doubtless there will be other
dividend reductions, If not in the near
future, before the half year is over, but
! it is not at all sure that these also have
been discounted.
When the early selling was at its
height some sharp losses were recorded.
United States Steel dropped under LA,
American Can under 100, General Elec-
trio under so, General Motors under 43,
and in the rapidly moving, highly spec
ulative issues, Auburn broke through the
200 mark A part of these declines was
recovered in a rally which set in around
midday.
Utilities went down with the indus
trials, including American Telephone q
Telegraph and American Water WORKS.
Standard Gas & Electric jumped around
but made good resistance, and American
g. Foreign Power rallied easily.
Early Market Lower.
Reversing the early and irregularly
higher trend, prices gave ground as the
morning progressed. Rains proved to
be the leaders on the downside.
The carriers were offered freely be-
cause of alleged nervousness over the
dividend actions to be taken by St.
Louis g. San Francisco and Chicago,
Rock Island & Pacific directors at their
meetings today. This situation was ag-
gravated by a decline in weekly car
loadings and the poor earning reports
being made by the railroads.
New York Central at 11712 was on
21z, St Louis g. San Francisco at 39R
of 4, Baltimore & Ohio at 1879 of
27a, and Chicago, Rock Island at 5SA
OF ~.
Sales in the first half hour amounted
to 800 900 shares, but Immediately after
that period trading increased as prices
declined. Call money renewed at IL
per cent.
Mullins Body was an outstanding
feature in the motor accessories as it
advanced 41s points to 263s on special
gained fraction at 1924. Radio lost