Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-24
STOCKS ARE LOWER
ON LIGHT VOLUME
Rumored Reduction in U. S.
Steel Dividend Brings
Out Selling.
SPECIAL Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, July 24.-Twc periods
of selling sent the stock market sub
stantially lower today. The first came
soon after the opening. when the talk
was all of the expected reduction In
the dividend on United States Steel
common at next Tuesdays meeting and
the second in the last hour, when the
railroad shares were under pressure
and the way In which they yielded led
to free offerings of the industrials.
The market left off not far from the
low Of the day, with new lows on the
reaction for United States Steel, Amer
lean Can, and losses In the rails of
2 to points One story was that
selling In the railroad stocks came from
the other side 1t might, however. have
been the result of another batch OF poor
earnings statements, although they did
make a better comparative showing with
those of a year ago than they did In
May.
I'm any event. it looked as though
the informal armistice hitherto OBJ
served by operators for the decline had
been violated and that the market was
being tested as to its resisting powers
under the new conditions. Volume was
low all day, but increased toward the
end when prices were around their
lows
The market today was influenced al
most entirely by domestic considera-
lions instead Of the foreign situation.
The apparently inspired report that the
United States Steel dividend would be
cut at Tuesdays meeting was the prin-
cipal influence on trading. 1t brought
moderate selling into steel in the first
hour, and the stock dropped back to
a new low on the movement.
Up to today there had been a con-
siderable volume of opinion to the eff
feet that the Steel directors would
maintain the rate on the common
shares regardless of current earnings.
Such action on their part could have
been interpreted as an expression of
confidence in trade revival, or IL could
have been regarded as forced in an en-
deavor to stimulate artificial optimism.
but whatever happened, it would not
have changed the fact that the dis
bursement would not have been war
ranted by the income account.
However that may be. the market
took the story well. Prices were lower
in the first hour, with American Can
under par. but before noon they had
hardened, with here and there an issue
SAiOWAib OIL oofdllNCs VII kilCf uay- oi
stocks weree steady and so were the
motors. The Chrysler statement proved
as cheerful reading as that of General
Motors the day before. Du Pont re-
sponded to its earnings report showing
the dividend more than covered for the
first six months
American Wooden preferred was an
outstanding feature of strength at
new high on this recovery. Buying was
based on the better demand for wooden
goods as we'll as on the strong financial
position in the company's balance sheet
What the first six months statement
will show in the way of earnings Is yet
to be seen.
Railroad stocks we're heavy with de-
clines in most of the active trading
issues. Northern Pacific was weak. re-
flecting its June statement. which show
ed net Of only 1913, 709. against 81.
103.007 in June. 1880.
The foreign situation was no worse,
according to the action of the foreign
market and the movement of the for
elgn exchanges. AT the opening on this
side sterling was up quarter of cent
German dollar bonds were a point or
so lower, but the stock market has
ceased TO be interested in the movement
of bonds. The view was repeatedly ex-
pressed today that stocks were in an
accommodating area.