Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-03-11
STOCKS IRREGULAR
ON LIGHT TURNOVER
Market Hardens When Trad
ing Volume Decreases
on Reaction.
BY GEORGE T. HUGHES.
Special Dispatch to The sta

Special Dispatch to The Star.
NEW YORK, March 11.-Although
some unsettlement followed the cut in
the New York Central dividend. today's
stock market showed impressive re-
Siliency. Opening prices were irregu-
larly lower, but volume fell of on the
reaction and before noon the list was
advancing. 80. .4
The most important news of the day
was the reduction In New York CentrapS
dividend from an So to So annual
basis, announced before trading on the
exchange was an hour old. 1t had
been argued in some quarters that the
Centrars directors would hardly float .
large bond issue one day and cut the
disbursement to stockholders the next,
but they did that very thing.
New York Central stock had opened
at 1191a, up nearly points from the
preceding close, and sold of on the
reduction in the rate four or i've points
from the initial price, but only two
or three points down from Tuesdays
close. Other railroad stocks weakened,
including Union Pacific, on at one time
points, and Baltimore & Ohio Of over
2 points. and yet the volume Of Offer
ings was never large and rallies from
the low point were the rule.
The temporary weakness in the rails
brought selling into the tndustrials, but
1t was soon absorbed. In fact, the
feature of the trading was the way in
which the list held up in the face of
the unfavorable railway situation. It
testified to the extraordinary Strength
Of the underlying position, emphasized
by the stock exchange compilation
showing that the ratio Of brokers' loans
to the total market value Of all listed
stocks as of March was at a record
low point. There is no important source
of supply from which stocks might
come to break the market, unless and
until there Is a greater business re-
cession than now appears probable.
Other weak spots besides the rails in
the early session included the copper
shares and Allied Chemical, which had
broken so badly In the last half hour
Tuesday. Allied Chemical made another
new low today, and the leading copper
shares were freely supplied. on the weak
ness in the metal. The steel trade re-
views were mildly optimistic, but United
States Steel was heavy.
On the other hand. the utilities met
strong support on the decline and re-
covered a good part Of Tuesdays loss
Special strength was shown by Consoli-
dated Gas and the stocks associated
with it in the proposed Eastern seaboaTd
combination. American Can held firn-
~, partly because Of the large short In
OctCSb OUTSTANDING anu partly DeCbuSe Oh
expectations Of q stock dividend. An
other furry in the rubber stocks at
tracted attention. Strength in United
States Rubber contrasted strikingly with
the showing in the annual report.
The market turned downward after
an irregular opening.
Despite reports of increasing activity
in the steel trade, heavtneSs was caused
by the report of Radio Corporation
showing earnings of 2 cents in 1880
against SIS per share in 1929, together
with the emphasis laid on the railroad
situation by an analysis showing net
earnings Of class roads In January,
Is OF over SO per cent.
United States Steel dropped to 144M,
'on over point, but then recovered part
OF the loss. New York Central was
nearly points higher &C the start, but
dropped point Of that while the mar
ket awaited the action of directors on
the dividend rate There was renewed
Liquidation when the New York Central
cuts its dividend rate from an SO an
nual basis to So. During the first half
hour trading amounted to 800 900
shares against 500 900 in the same Pc
Rod Tuesday. Can money renewed at
2 per cent unchanged.