Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-01-28
STOCKS ARE LOWER
|. IN STEADY SELLING
UnfavorabIe Steel Report
Given as Cause for Mar
ket Decline.
BY GEORGE T. HUGHES.
special Dispatch to the Star.

Special Dispatch to The Star.
NEW YORK, January 28.-For the
first time in q week or more, stocks
experienced a decided reaction in to-
days market. For the first time also
in a long while, activity increased on
the decline, although volume was still
moderate.
The selling, which came into the list
directly from the start, was professedly
based on the u. S. Steel statement,
with the small earnings for the COM
mon stock during the fourth quarter,
and on the prospect as outlined in the
weekly trade journal reviews that i'm
provement during this quarter would
be slow and subject to interruptions.
There was no reason to expect any
better showing in the Bethlehem Steel
report. due Thursday, and SO steel
stocks were freely offered, with an ao-
verse effect on the rest of the list.
Oil Situation.
The oil situation came in for good
deal of comment. 1t was feared that
the whole pro-ration scheme might
break down. Another unpleasant pos
sibility from the Wall Street point OF
view was that the veterans adjusted
compensation bill might be enacted
into law even over the Presidents veto.
had such a long rise was urged as
adequate reason for reaction.
The market opened lower and ex-
tended the losses during the first two
hours. U. S. Steel, off less than
point on the first sale, was down over
2 points before noon. Naturally
enough this was the stock picked out
for attention by the bears. II Steel
could be sharply depressed, the rest
of the list ought to follow. Standard
industrials, such as American Can,
Westinghouse Electric, Bethlehem steel
and, in the utility list, consolidated
Gas, American Telephone & Telegraph
and Public Service of New Jersey ali
sold of to 2 points.
Other Changes.
/ Standard Oil of New Jersey receded
under relatively light offerings. The
other oils were lower, but not active.
Stocks which had run up rapidly
against the shorts in recent sessions,
such as Auburn Auto, came down al
most as fast Special pressure was
exerted against the coppers on the
Statistical situation in the metal trade.
Motor shares yielded with the others,
with a new low for Studebaker and
point loss for General Motors.
The rails were unable to stand up
against the weakness elsewhere. The
popular view with regard to the carrier
issues was that all the good news was
out-the progress toward mergers and
the attitude of the Interstate Commerce
Commission with regard to recapture-
while the fact of poor December earn
ings statements was yet to be reflected
in prices. The only offsetting considera-
ton was an increase In car load1ngS
somewhat better than the seasonal rate.
Early Market Irregular.
Irregular price fluctuations charac-
terized early trading Transactions
were smaller than on Tuesday, though
the Stock Exchanges announcement OF
approximate sales Of 100000 shares
in the first half hour gave only
rough idea of what sales actually were,
compared with 253, 100 on Tuesday.
United States Steel, Vanadium, Beth
lehem Steel, Colorado Fuel, Republic
iron & Steel and United States Pipe &
despite the reporting by Iron Age OF
a further slight gain in activity" Call
money renewed at 1l2 per cent, I'M
changed.
Active industrials moved in an in
determinate manner. Air Reduction,
American Can, Case ThreShing, Cen
eral Electric, Westinghouse and Radio
were fractionally lower. while Column
bian Carbon, Commercial Solvents,
Standard Brands and Montgomery
Ward were strong. Woolworth dropped
an eighth in spite of good earnings
report for 1880. Mine shares moved a
shade lower, led by Kennecott.
In the rails Norfolk & Western
touched a new high at 21234, up 134.
New York Central was of Il points
in active trading. Southern Railway
declined, while Atchison advanced.
Public utilities were quiet American
Telephone was lower at 1861 Auburn
Auto dropped q points. General Mo-
tors was of shade. Studebaker was
actively sold and touched q new low,
later recovering.