The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-04-04
SECURITIES HIT
LOWEST PRICES
OF BEAR MOVE
UnfavorabIe Developments
of Week Past Cause
Heavy Selling.
BY OTTO E. STURM
United Press Financial Writer

NEW OANAAs AplAl 7.-OuS UlOW
after another was heaped upon Wall
Street during the last week and the
stock market tumbled to the lowest
levels since the bear movement
started in September, 1929.
Already depressed by the failure
of general business to show any
improvement during the first quar-
ter. discouraged holders threw their
stocks on the market day after day
because of unsettling developments.
Most Of these, paradoxically. were
by way Of being efforts to lift the
country out of the sloughS of the
business depression. What proved
most painful to the financial COM
munity was the tax bill because it
raised the tax on stock transfers to
4 of l per cent and contained a
measure making stock dividends
subject to the normal income tax.
Wall Street Unimpressed
The fact that congress was deter
mined to balance the nations bud
get failed to impress Wall Street
when it came to levies of this kind
and predictions were freely made
that, far from creating new reve-
nue., these measures would practi-
cally kill business on the Stock Ex-
change. 1t was hoped generally
that the senate would modify con-
siderably the house tax bill.
Another hope that proved q 'dud"
was when an expected squeeze" of
the short interest failed to material
ize. This was on Friday when the
new Stock Exchange ruling requir-
ing the owners consent to lend
stock for short selling went into eff
feet.
There was a brief shortage of
stock for this purpose, but the premi-
ums were lacked up to such attrac-
tive levels that plenty of stock was
forthcoming and shorts found it
just as easy to borrow shares as
ever, if they were willing to pay the
price, which apparently they were.
Special Groups Pounded
Special groups of stocks were
pounded hard by developments af-
fecting their respective industries.
Rails were prominent in this cate
CORY, being subject to heavy selling
on indications that future loans
from the reconstruction finance
corporation will not be so eaSyt O OBJ
tain.
Missouri Pacific common and pre-
ferred led the reaction III the car
rier shares, most of which slumped
to new lows for the bear market.
New York Central finished the week
81 points lower at 2314, while wide
losses were displayed by Rock Is
land, Erie. Nickel Plate, Frisco and
others.
Motors and public utilities were
in large supply, the former on pros
poets of price war among compa-
MES in the low-priced field and the
latter because of fears that a down.
ward revision in rate was in pros
pect.
Motors Hit New Low
General Motors touch a new low
and closed at Is, off rs, while Au-
burn went through it's usual pyro-
technics, finishing more than 10
points lower.
Electric Power and Light, Ameri-
can Power and Light, United Cor
poration and others dropped sharp
ly, while American Telephone and
international Telephone came back
somewhat late in the week.
Steel, General Electric, Westing-
house. American Can. Du Point, AL
lied Chemical and other industrial
leaders were off l to points at the
end of the week. A popular excep-
ton to the general trend was Alaska
Juneau Gold Mining, which closed
more than points higher at 1914,
on the relative increase in value of
gold because of the def1ation in
stocks and commodities.