Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-01-13
REACTION IN STOCK
MARKET CONTINUES
Leading Issues Decline to
New Lows as Selling
Persists.
BY GEORGE t. HUGHES.


Special Dispatch to The Star.
NEW YORK, January 13.-Under
persistent but moderate pressure, to-
days stock market sustained another
reaction, with practically all Of the
leading issues making new lows on the
movement.
Among the distributing influences,
the oil situation received much atten-
ton. The statement to the effect that
the Texas Corporation had earned
barely half of its dividend in 1880 made
a bad impression, which the assurance
as to the continuance of the diSburse-
ment this year did not remove. Then.
today came reports of an impending
cut in Midcontinent and in Texas
Crude, together with limitations OF
similar action in California
Oils Freely Offered.
The result was free offerings of the
oil shares, with a new low on the re-
action in Texas corporation and losses
of greater or lesser extent in other ac-
tive members of the groups, including
Standard Oil of New Jersey.
Professional operators for the de-
cline kept up their attack on Westing-
house Electric and that stock, too, made
new low for the movement and for
the bear market. Vanadium was singled
out for selling by the bear crowd and
the price gave way, drifting under so,
where it was down over 4 points from
Mondays high. The decline was ac-
companied by disappointing estimates
of earnings last year and questioning
as to the action of the directors on the
next dividend.
American Telephone g. Telegraph
sold off rather easily. A semi-official
statement that no bond financing was
contemplated in 1881 and that stock
financing was improbable did not serve
to check the decline, because 1t is the
rights shareholders receive when such
financing is done that give the stock
one of its chief attractions.
Other Losses.
Elsewhere in the list United States
Steel weakened, taking with it Bethle-
hem Steel, American Can and many
specialties. Rails moved with indus
trials, one of the largest losses being
that in Delaware, Lackawanna 81 West
ern. Solely on the expectation of ben
efits to come from the consolidation
plan, Lackawanna had been bid up rap
idly last week and was without nearby
support today.
All through the weakness the best
showing was made by the motors. They
sold of but their losses were slight. To
less degree THIS was true OF the cop
per shares. The December statistics,
which came out during the day, showed
production down hJm November and
shipments up, which was satisfactory
as far as it went.
Aside from the natural reaction
which the market might have been ex-
pected to register after its rise since
the first of the year, today's session
was in some degree test of its abil-
ity to face the facts as to unsatisfactory
industrial operations and profits in
1880. Much more of this sort of thing
is to come and it remains to be seen
how far prices can resist these dismal
financial statements. Everything con-
sidered, the result today was encourage
ing rather than otherwise. Quotations
did give way but as a rule the losses
were held to small amounts and volume
was still low.
Pressure on the pivotal shares at the
opening lightened as todaY'S session
progressed. Trading, however, was at
an increased pace, sales in the first half
hour amounting to 285. 500 shares, COM
pared with 246,900 Monday. Call money
renewed at = per cent.
United States Steel, after opening at
al r., lost % and then rallied. West
inghouse was off a point at the OPEN
ing, but regained fraction of this loss
Vanadium started at 51%, up H, but
after absorbing considerable selling it
fell to 1879.