Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-27
STOCKS UNSETTLED
AS RAILS DECLINE
Publication of September
Earnings Causes Renewed
Selling in Carriers.
BY GEORGE t. HUGHES.

Special Dispatch to The star
NEW YORK, october 27.-Weakness
in the railway shares again unsettled
the stock market today and the reac-
tionary movement was carried further.
1t was primarily the railway outlook
which was responsible for the weakness
il stocks. The September earnings
statements made an impression even on
a speculative community that might be
supposed 10 be hardened to continuous
decreases in income. and yet the TACT
that the percentage of loss OF the roads
that have already reported was larger
in September than it was in August
was disturbing The best illustration of
this is the Atchison. the president Of
which was quoted as saying that last
months decline in gross revenues OF
his road was the greatest for any month
so far this year.
Then traders had to Worry about the
dividend prospects. The Pennsylvania
directors meet Wednesday and the feel
ing today was that the rate would be
reduced. Delaware & Hudson dividend
action is to be taken the same day, and
in this case it is expected the disburse-
ment viii be maintained. New York
Central is not scheduled to act until
December. but there was animated dis
cussion of the chances OF cut here
also. Another contributing cause was
the renewed agitation over reparationS
and tntergoyernmental debts In the
Washington and European dispatches.
This was reflected mostly in the bond
list, but it also had an effect on stocks.
New York Central, which had been
conSpicuouSly weak Monday added 8
more points to the loss by midday to-
day Illinois Central made a new low
and breaks took place in Atchison,
Union Pacific and other important
dividend payers before noon.
While the best opinion was that the
dividend on United States Steel common
would be maintained at the 81 annual
rate at the meeting after the close,
there was just enough uncertainty about
1T to bring selling into the stock. The
Bethlehem dividend meeting will be
held on Thursday, but that stock was
little better supported. Elsewhere in
the list losses of greater or lesser ex-
tent were registered by American Tele-
phone, Auburn Auto, j. 1 Case. East
man Kodak and many of the utilities,
among which North American was
prominent.
Shares opened with mixed price
trends. Rails displayed the most uni
formly upward tendency, with the util-
tiles furnishing contrast in the oppo-
site direction.
U. S. Steel. whose directors meet for
dividend action this afternoon opened
at 683s, of q. Vanadium, likewise, was
lower at 20ss, but Bethlehem, whose di-
rectors meet for dividend action Thurs
day, was up shade at Is -
Canadian Pacific at 14Ss and Mis-
souri, Pacific at 1873 were each up X,
but N. Y. Central at 54A and Pennsyl-
vania at 317s were unchanged The
latter'S directors meet for dividend &C
ton Wednesday Southern Pacific
gained y; Union Pacific rose point to
112 and Atchison gained 1la to 1l1l2.
American Telephone lost l point at
1891. The following showed fractional
losses: American & Foreign Power at
1865, American Power & Light at 203s,
Electric Power g. Light at 1875, Inter
national Telephone at l7l2 and Ma
tional Power & Light at 17l2 also.
Auburn Auto was down points at
1875. Standard Oil of N. J. was of u
at 80 and Socony Vacuum lost Il at
lax. General Electric at 305s and
Westinghouse at Ala each declined "a.
Union Carbide dropped / point to SO.