Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-09
STOCKS ARE HEAVY
IN LIGHT TURNOVER
Market Turns Irregular, But
Rail List Shows Resist
ance to Selling.
BY GEORGE t. HUGHES.
Special Dispatch to The Star.

NEW YORK. September 9-Another
session of aggressive short selling COM
bined with liquidation, some of it for
foreign account, brought the usual
quota Of new lows in todays stock
market. At times the rails resisted bet
ter than the industrials and there was
covering movement at the close, which
brought some stocks up for net gains
on the day, but the greater part of the
day the market had a weak appearance.
During the course of the afternoon
United States Steel broke through $50
a share to the lowest in 10 years and
General Motors sold within a fraction
of its low for the bear market. Both
recovered somewhat at the end and
the market looked oversold as trading
stopped.
There was no weakness in COM
modities corresponding to that in stocks
but the market was disturbed by
number of breaks in the bond list, m
GLIDING foreign descriptions and rail-
road issues.
The event OF the day, as far as II
affected the rails. was Of course the re-
duction in the New York Central dlvl-
dend from a Sc to a 81 annual oasis
Announcement of the cut was received
In the Street during the first hour OF
business and the stock, which hao SOLO
Tuesday at the lowest in the history
of the present company, hardened Other
railroad shares improved on snort COW
ering, but not before new lows hdd peeh
set up by Baltimore d ONO. Lacha-
wanna, Illinois Central and Northern
Pacific. Canadian Pacific was especially
weak, opening down POINT ana han
also at a record low.
Elsewhere in the list the first nalt OF
the day was marked by a good deal OF
irreg1llarity. An outstanding feature was
the weakness in United States Steel pre-
ferred. which sold of over 4 points, a
large loss for a stock OF such aomltteo
investment merit. Steel common nue.
tuated within a narrow range, but nelo
fairly we'll. due to the extensive snort
interest. American Can, Eastman KODAK
and a few other stocks that had been
pressed on Tuesday ran up point OF
two.
On the other hand the motor shares
were heavily sold. particularly General
Motors. which made new low on the
movement and came within a point or
so of It's low for the year. Dupont went
of with General Motors, Tie oils were
heavy rejecting the depressing effect OF
the reopening of the East Texas field
with an allowable production higher
than had been expected. Food shares
we're pressed for sale. including Corn
Products and Borden Co.
There was not much comfort to be
cleaned from the steel trade reviews.
Estimates Of the rate OF production ran
from % to 80 per cent Of capacity, and
while a hope was expressed for i'm
provement later In the month, there was
little tangible evidence thereof. A IA
vorable dividend announcement was
that OF Air Reduction. the directors OF
which declared the regular quarterly
dividend OF IS cents a share and the
extra Of 81 SO which for the past two
years has been paid at this time.
The foreign markets were closely
watched for their reaction to the British
budget proposals. 1t was difficult. how
ever. to decide whether weakness abroad
was due to the slump III stocks here or
vice versa. While the street was still
dominated by the British situation,
economists agree that IL is the United
States which will lead the world out of
the present depression. Recovery must
come here before it can be achieved in
Europe.