Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-03
STOCKS DEPRESSED
IN SHARP SELLING
UnfavorabIe Business Re-
ports Are Made Basis for
Further Liquidation.
By GEORGE T. HUGHES.
Special Dispatch to The star.


NEW YORK, September 3.-Acute
weakness in the railway shares, which
carried the averages for that group down
to another new low for the bear mar
ket, and sharp declines in q few indus
trials brought about q general break in
the stock market today.
The rails were weakest in the morn
Ing and the industrials in the after
noon. Reading slumped points in the
first half of the day. In the last hour
United States Steel and American Can
share, the lowest since 1922. Passing
OF the dividend on j. I. Case common
brought a slump Of 10 points in that
stock.
Volume ran close to 1000 600 shares.
against less than 100000 the day be-
fore.
The fact that the railroad averages
made a new low for the bear move
ment in Wednesdays decline brought
large overnight offerings into this
group. The selling spread to the in
dustrials, with much discussion of the
well-known theory that the one aver
age must confirm the other by going
into new low ground if a continuation
OF the general decline was to be FORE
cast
1t was still the passing Of the dividend
IN the Lehigh Valley common stock that
unsettled the rails. That action had
neen surprise and today traders were
taking r,othing for granted in the way
Of dividend stability. Reading broke
violently into new low ground, off more
than points before noon, on a sup-
gestion that its rate might be revised
downward at the meeting later in the
month. Reading and Lehigh Valley
are classed together as coal carriers.
New lows were made in a long list of
rails, including Atchison. Baltimore 81
Ohio, Canadian Pacific, Illinois Central.
New York Central, New Haven. Great
Northern preferred and Lehigh Valley.
Such support as there was came
principally from the shorts.
Another unsettling development was
the omission OF the dividend on ]. I.
Case common. This announcement
was made Wednesday night and seemed
also to have taken the street by sur
prise. At any rate the stock had a
spectacular decline OF almost 10 points
before covering brought a rally.
Other weak spots were American Can.
at approximately the old low: Column
pan carbon, dropping points on what
looked like pool liquidatio and West
inghouse Electric, where the talk was
OF another dividend cut. U. S. Steel
broke through "a, within fraction of
its 1881 minimum price The utilities
were weak, particularly American Tel
ephone 81 Telegraph, Consolidated Gas
and American & Foreign Power.
In the motor list Auburn lost S
points during the morning hours ::
Chrysler was offered freely for a loss
OF over a point. and General Motors
reacted fractionally. Selling in the oils
revealed the existence of a weak long
interest, probably recently built.
Activity increased on the decline to-
cay, and volume fell of on the rally.
Outside OF the railway situation the
most depressing influence was the abb
sence OF any signs of the hoped for
Autumn business recovery. So far. none
OF the accepted indjces have shown any
indication of trade improvement. 1t
may only be postponed. and, If so. when
1t comes 1t will find the market in a
position TO stage sudden and sharp
ADVANCE. but meanwhile the minority
still committed to the constructive
view was standing aside.