Evening star., 1931-12-23
STOCKS ARE LOWER
AS RAILS DECLINE
Tax Selling Believed Respon.
sibIe for Resumption Of.
Down Trend.
BY GEORGE T. HUGHES.

Special Dispatch to The Star.
NEW YORK, December 23.-Without
any important change in the outside
situation, the stock market today again
reversed itself and sold off, not extern
siVely, but fairly uniformly.
The Street had been looking for a pre-
holiday rise, but there was no indication
Of it in the early trading today. Stocks
slowly gave way after an opening prac-
tically unchanged. The best explanation
was more selling for the purpose of re-
ccrding tax losses Next to that the
reason that was most generally accepted
was dlstruSt of the foreign outlook, and
excepting for the low level at which
stocks are selling, there was no off,
setting consideration.
Rails Lead in Reaction.
The railway stocks were leaders on
the reaction. Union Pacific was weak.
although reporting an increase in net
operating income in November over the
same month year ago, notWithstand-
ing drop Of S400OO0O in gross. In
the first few hours the price was down
3 points New York Central was in
supply and fell below the 80 mark
again. Losses of poin. or more were
sustained by Baltimore e. Ohio. Penn
sylVania. Atchlson and Southern Pa
cific. The car-lOadng report for the
week showed a decrease from the pre-
cedlng week, but not much more than
seasonal
Tobacco stocks were unsettled by re-
ports of heavily increased taxation
American Tobacco was the one most
affected, although Reynolds B maze a
new low for the yea.
The active mduStrialS. such as Allied
Chemicals, American Can, United States
Steel and Auburn Auto, were all down
the last named or points. which
however, is particularly significant in
the case of a stock that moves so rap
idly. General Motors lost the appear
ance of steadiness it had shown in
other staggering markets
The utilities were heavy, with losses
in Consolidated Gas and American
Telephone. The market was not par
ticularly active, only 100000 shares
changing hands during the first half
hour and trading dragging along list
lesSly the rest of tn time The dis
couraging feature was not the amount
of the offerings, but the lack Of buying
interest
The stock market today was out Of
touch with that for bonds. In the lat
ter there was some Sh0" Of strength,
but it had no influence on the share
list Hershey Chocolate Co. declared
quarterly dividend OF Sl50 on the COM
mon. putting the stock on ST basis
against IS previously paid. and Amari-
can Ice Co. declared the regular rate
on its common stock.
Opening Prices Higher.
Fractional advances outLumbered the
declines at the opening.
With the exception Of 3-pOint gam
in U. S Steel preferred at lO5, most
price changes were unimp0rtant U. S.
Steel common ooened off IA at 40 8
Standard Oh of New Jersey was up =
at 27l4.
Market development included a fur
ther decrease III weekly carlOadIngS,
further weakness in steel quotations
and the usual holiday slack -nlng in
production. along with quiet London
market and a report that the Basic
agreement had been approved.
New York Central at 81! ,, Illinois
Central at ia, Canadian Pacific at
IL. and AtchiSon at 8834. all gained
slightly Southern Pacific at 32l2 lost
S. General Electric at 1854 was down
a. but Westinghouse was UP : at % =.
Allied Chemical rose a shade to II j.
American Can was unchanged at Ga
General Motors at 23l2 dropped Is.
and so did Auburn Auto at 1908, but
Nash at 1855 and Packard at 4le each
advanced g. Consolidated Gas gained
y at So. and Public Service OF New
Jersey at 55ls was up 8. United
Corporation rose a to GA, but North
American at 34l4 and United Gas In
provement at 1928, were unchanged.