Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-28
'STOCKSARE LOWER
IN SHARP SELLING
Market Apparently Ignores
British Election News.
Leaders Weaken.
BIZ GEORGE t. HUGHES.

Special Dispatch to The Star
NEW YORK. October 78-Putting
the most unfavorable construction upon
domestic developments and ignoring the
result of the British election, which
was all that could have been wished
for from the Wall Street point of view
today,s stock market had periods Of
reaction that amounted TO actual
weakness.
The market was under severe pres
sure throughout the morning. In ex-
PLANTATION it was said that the United
States steel report was poorer than had
been expected Omission Of the dividend
on Illinois Central common Tuesday
and the probability of other railway
dividend reductions and omissions was
another reason assigned. Finally some
traders profeSSed to be frightened by
the action of the japanese foreign
minister in warning Moscow against
interference In Manchuria.
Leaders Decline.
United States Steel and the rails took
the brunt Of the selling during the first
was less than points above its extreme
low 1t was not helped by the Iron
Ages weekly review of the industry,
although that authority put the rate
of operation at 29 per cent OF capacity
against % per cent week ago and said
that reports from consuming industries
were trifle more encouraging. Unset
tlement in the price outlook was an
offsetting influence.
All the railway stocks gave way. with
New York Central down TO a record low
meeting on Central Is not scheduled
until the second week IN December, but
predictions OF another cut were freely
made. Union Pacific touched par,
where IL was down 6 points on top OF a
5-point decline the day before. Union
Pacific was affected by the decline in
New York Central and in Illinois Cen
trail, which, incidentally, also made
another new low. because Union Pacific
has large holdings in the stocks Of these
two roads.
Opening Prices Mixed.
Slight gains in prices marked the
opening.
U. s. Steel at 81 was of Il, reflect
ing disappointment over its earnings
rather than the regular dividend dec
laration which was as expected. BETH
lehem Steel was of % at 251s
The Conservative victory in the Brit
ish elections, which was reflected in a
rising London stock market, was COM
mented on favorably by bankers here.
Sterling opened higher here. After an
initial burst of strength prices in Paris
eaSed
Pennsylvania, whose directors meet
for dividend action today, opened on
Il at 30l4. Chesapeake 81 Ohio rose
y to 3012, but Baltimore & Ohio at
32I5. Canadian Pacific at las, Union
Pacific at I05ss and Northern Pacific
at 22l2 all lost fractionally, rejecting
the decline III weekly car loadings.
N. Y. Central was down / at ST.
General Motors at 26 and Studebaker
at 1914 gained fractionally. Utilities
for the most part we're higher. The
issues showing advances included Amer
lean g. Foreign Power at 1872, Ameri-
can Telephone at 139 Consolidated Gas
at 723s and American Power & Light
at 20. The oils were rather dull, but
the few that appeared, such as Socony-
Vacuum, were higher. The coppers
we're almost uniformly lower. American
Can was up slightly at "a. which was
also true of General Electric at SOS
and Westinghouse at 4614.