Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-27
STOCKS IRREGULAR
Jon LIGHT TURNOVER
Is Restrained
Pending Action on U. S.
Steel Dividend.
BY GEORGE T. HUGHES.
Special Dispatch to The Star.

NEW YORK, July 27.-In a market
that for inactivity matched anything
seen before this year. stocks on the Ex-
change today moved irregularly, flrm-
ness in the industrials being partially
offset by heaviness in the rails. Inc
best prices were made just before the
end
United States Steel sold at its high
est of the session near the close, SEEM
ingly showing that the stock had dis
counted prospects of dividend cut.
On the other hand. the railroad shares
were in supply around the lows OF the
movement. June reports really made
better comparative showing Than did
those of a month ago. For instance.
st. ouis-Southwestern increased its
net income in spite of falling OH IN
gross and Atlantic Coast Line recorded
increases in both gross and net over re-
suits year ago. The percentage OF the
falling oil in earnings in June was sub
stantially lower than that of May, but
what the market evidently feared was
the reduction of railway dividend rates.
In general it may be said that stocks
reflected more the immediate prospects
of the individual corporation repre-
scented rather than any trend OF the
market as whole. From the low
volume, less than three-quarters of
mllllOn SndTSS, IL WAS pam llldI llO"-
ever unfavorable the outlook there was
no stock pressing on the market from
either investment or speculative sources.
1t was natural that speculation
should be restrained. With the United
States Steel dividend to be acted on
Tuesday. The Street is reconciled to
a reduction in the rate, but 1t is not
sure what the market effect will be
because it cannot foresee whether or
H. 10
| ton. AS far as margin accounts go the
situation is AS strong as it has been
any time during the bear market, but
that will not prevent stock coming out
of strong boxes If and when the divi-
! dend rate is further pared
Beside the Steel dividend there is
| concern over the disbursements on
many railroad stocks. Here. too, the
market may have discounted the ex-
| pected cuts, but that again is purely
conjecture and the uncertainty results
! in cutting down trading.
! The market opened lower, with
| United States Steel at a new low on
| the movement, but after the initial
| transaction it rallied and the early
losses were more than cancelled. There
after it relapsed into inactivity One
! outstanding strong spot was American
! Wooden preferred. up over 3 points
ICtEOIJS lIOIl lIle WOOleIl industry are
! increasingly optimistic and this, COM
bined with the strong asset position Of
the preferred issue brought buying into
| the stock. Shoe stocks were strong but
| inactive, with Brown Shoe at a new
| 1881 high.
With the exception Of Auburn, which
| is law unto itself the motor stocks
| were firm. encouraged by the good sec
ond quarter report from the Studebaker
Corporation, showing Sc cents a share
on the common stock against 35 cents
in the preceding quarter and Al cents
in the same period year ago. This
ability of the motor car producers to
increase their net income. despite the
falling off in sales in the industry, as a
whole, is one of the most encouraging
features of the whole situation.