Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-05-25
MANY BEST STOCKS
REACH NEW LOWS
Heavy Losses Recorded by
Leaders in Steady
Price Decline.
BY GEORGE T. HUGHES.


Special Dispatch to The Star.
NEW YORK, May 25.-Under STEADY
stream Of Offering the stock market to-
day worked continuously lower. During
the course Of the session new lows Tor
the bear movement were made by Such
typical issues as u. S. Steel, American
Can, American Telephone Iele.
graph, General Electric, Atchison and
Union Pacific.
Other stocks, one of which was Cen
eral Motors, held only fractionally
above their extreme low. The decline
was effected on small volume and with
out special incident. Auburn Auto
broke over 90 points, but that issue
normally fluctuates over wide range.
For other stocks there were buyers at
moderate concessions on the way down.
Just before the close there was feeble
rally, presumably on short covering
The selling which depressed the mar
ket during the morning hours was
plainly disheartened liquidation. Save
in a few special cases it was not the
result of fresh commitments for the de-
cline. AS matter OF fact, there was
heavy short covering last week by pro-
fessional operators in expectation OF
sharp technical rally Therefore the
market today was deprived of that
source of support Left to itself, the
selling orders over the week end brought
generally lower scale of quotations.
The most discouraging feature was
the lack of resistance in the railway
group The furry of strength follow
ing the announcement on Thursday that
application would be made to the In
terstate Commerce Commission for an
increase in rates, disappeared. Instead
carrier shares were in supply and
drifted downward. Union Pacific sold
at the lowest in five years, although the
road is earning and paying the regular
$40 dividend and is in an exceptionally
strong position However from specu-
lative standpoint high-priced stocks are
in as great disfavor today as they were
popular two years ago.
Other new lows in the railway list
we're recorded by Chesapeake & Ohio
and by Norfolk 81 Western. Atchison
| broke through $50 again. New Haven
| lost a. couple Of points and SO did Chi
cago e. Northwestern. OF course, there
! was nothing in the April earnings
statements which came to hand to
| encourage buying, but it had been
thought these statements had been dis
| counted
The feature in the industrial list
was the new low for United States
Steel and the selling of General Mo-
tors Remarks of President Farrell,
broadcast, to the effect that trade re-
vival was in sight, were no help to the
market, which kept in mind his state
ment as to the difficulties most steel
companies would have in earning pre-
ferred dividends under present condi-
tions.
without change in the character Of
the trading. the market worked steadily
lower in the afternoon. Volume was
light, but quotations kept sagging.
American Telephone 81 Telegraph broke
through 1874 to new low for the bear
market. and Western Union, well under
par, was also at new low. Selling
spread to the utilities, but their losses
were comparatively small. General
Electric and Westinghouse, both of
which often move with the utilities,
were weak.
For time during the morning Au-
burn Auto stood out. resisting pressure.
but in the afternoon it succumhed.
Peoples Gas, the only other active stock
IN the 200 class. lost or points.
Du Pont went down with General Mo-
tors, in which it has so large an in
terest. Crucible Steel made a new low
with United States Steel. Atchison
joined Union Pacific at the lowest price
of the decline. Corn Products made a
new low. and so en-.
The day was singularly destitute Of
news which might be expected to in
fluence prices. Even rumors were
scarce.
Copyright, 1917