Evening star., 1932-01-27
STOCKS co LOWER
| IN DRAGGY MARKET
Steel Corporation Report and
Dividend Action Causes
General Reaction.
BY GEORGE T. HUGHES.
Special Dispatch to The Star.


NEW YORK, January 27-The rec
ord deficit reported by the United
States Steel Corporation was too much
for todays stock market, which yielded
all along the line, although without
any great volume Of selling. Steel
common itself led the recession. The
rails made a better showing than the
industrials, but generally speaking the
market was a depressed affair.
Disappointment over the showing
made by U. S. Steel was in evidence
directly from the start. The reduction
in the dividend had been expected and
that in itself would not have caused
the weakness. Many traders would
have preferred that no payment at all
be made, on the ground that 1t was
simply deferring for three months what
will have to be done in the end. They
were disappointed, however, by the in
come account.
Steel Under $3S.
United States Steel opened at 40,
compared with the previous close OF
4l34, and before noon was selling under
$38 share for net loss on the day
Of some 4 points. The extreme low for
the bear market was 3512, registered
January 5. Steel preferred sold of
with TIE common
Another weak industrial was General
Electric, which touched 20 for the first
time during the life of the present
shares. Street opinion was to the effect
that a cut in this dividend was prob
able, the new rate suggested being $l.2O
share. Bethlehem Steel was weak
both because of the reaction in United
States Steel and because it faces a
dividend meeting tomorrow. However,
1t was said that Bethlehem would make
a better earnings showing relatively
that United States Steel, although it
might not pay any dividend at all. The
stock during the morning sold only a
shade above its old low.
In sympathy with the general market,
not because Of anything speclflcaIly
new in their affairs, Allied Chemical,
American Can. Auburn Auto, Eastman
Kodak and other stocks Of that specu-
lative grade weakened more or less.
General Motors made better resistance,
as was logical in view of its compare
lively good statement Earnings OF
over 81 a share after extraordinary
write-offs could not be looked upon as
ANYTHING but gratifying The corpora
ton reports its usual impregnable flnan-
cial position The stock held within
a narrow range.
Pressure continued against American
Telephone g. Telegraph. which lost over
3 points during the early trading. The
source of the selling remained a mys-
terv, as there has been no question
about the stability Of the telephone
business. A stock that made good
showing was WoolWorth. the report OF
which is due shortly. Tobacco stocks
held we'll. AS for the rails, they were
irregular One or two Of the dividend
payers were quoted higher at intervals
but could not stand up against the
weakness in the industrials. The best
that could be said was that railroad
issues were in better demand than the
rest of the list.
Money renewed at 2i2 per cent and
was in good supply at that rate.
Opening Prices Lower.
The opening was lower and trading
was SLOW.
After the first few minutes of trad
ing, however, the tape displayed greater
activity on the down side. Bethlehem
Steel. whose directors meet for div1-
dend action Thursday, opened at l8, of
ia points. General Motors at q Is
was off a fraction. following publication
OF its 1881 earnings Of s20l on the
common stock.
American Telephone at 1852 lost
1as American Can opened of q at
6O34. j. I. Case at 3634 and Coca Cola
at 1O8 each declined a point. Westing-
house at 24a4 was down rs. U. S,
Steel common. following the halving of
its common dividend Tuesday, opened
at 40, off l24 on a block of $500 shares.
Baltimore g. Ohio declined "a to 1894
and Canadian Pacific was of y at Is.
New York Central dropped "a to 3134
and Missouri Pacific preferred IA to
1912. Southern California Edison
opened off "a at 3012. Standard Gas
at e was down /. Western Union at
4O3a and North American at 32l2 were
each of p and Woolworth was off q
at ABS