Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-05-14
STOCKS SAG AGAIN
TO RECORD LOWS
Rails Continue Downward
Plunge, but Trading Is
in Small Volume.
BY GEORGE T. HUGHES.
pecial Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, May 14-Stocks sagged
again today to new low levels for the
current decline. United States Steel
was conspicuouSly weak and nearly all
the rails headed downward.
Without anything fresh in the news,
but with sentiment in the street pessl-
miStic, prices opened lower and with Few
exceptions continued to decline during
the first two hours. In the railway llSC
new lows were made by Southern Pa
cific, Rock Island, Missouri Pacific COM
mon and preferred, Southern Railway,
Lackawanna, and Delaware & Hudson.
Union Pacific was off points before
news was received of declaration of the
regularly quarterly $3.50 common divi-
dend, after which it rallied somewhat
There was much speculation about the
outcome of the Southern Pacific diyi-
cend at the meeting next week.
The market for railway stocks was in
duenced by the weakness in railway
bonds. St. Louis Southwestern was an
example The common stock, after hav-
ing duplicated the previous 1881 low,
was offered at a fractional decline, with
the best bid 21a points away.
Another discouraging feature of the
market was the continued pressure on
United States Steel. The common
stock broke through 100 for the first
time since 1924. and the fact that there
Is large outstanding short interest did
not help much. Food stocks were mod
erately lower, which was unusual, for
that group has held up better than the
average in other recent sessions. Corn
products was the weakest of these
stocks, but Borden National Dairy
ard Brands were all down more or less.
Woolworth reacted under realizing, but
was not weak. In general, mecchandis-
ing stocks were better supported.
A better showing was made by the
motors, although as rule they record
ed some losses Royal Dutch was sold
on the cut in the dividend, and Texas
Corporation made new low, but the
oils we're relatively inactive. Interna-
tional Nickel went to new low on
publication of its first quarter earnings,
amounting to only cents share on
the common. California Packing
weakened.
Trading was on very limited scale
and obviously professional. How much
outside liquidation has been induced by
the weakness is uncertain but it will
have to be substantial If the bear party
is able to retire It's commitments at
profit. So far they have met no oppo-
sition on the down side, but the real
TEST Is YET 10 COLIle.
Cali money renewed at ~ per cent.
The market hardened in the after
noon. except for the railway shares.
Shorts in Westinghouse, American Can
and Allied Chemical covered in SUI
ficient numbers to hold these stocks at
or above Wednesdays close. Utility is
sues resisted well, especially Conson-
dated Gas, Standard Gas and Western
Union. Mail order stocks were higher
under the leadership of Montgomery
Ward. On the other hand, selling came
into Standard Oil of New Jersey. the
1881 report Of which has not yet been
published.
The loss in Missouri Pacific preferred
amounted to between and 7 points
before support was encountered. To-
days reports were that no action would
be taken on the preferred dividend at
the next meeting.
copyright, 1919