Evening star. [volume] (Washington, D.C.) 1854-1972, 1933-09-15
SECURITIES CLOSE
AT LOW FOR DAY
Most Stocks Forced Down
by Heavy Pressure
on Utilities.
BY GEORGE T. HUGHES.


NEW YORK, September 15-In spite
OF the emphasis given here to imitation
prospects and the action of the Euro
pean exchanges, the stock market today
was primarily influenced by the break
IN public utility securities. due to the
low rates proposed on power generated
at the Muscle Shoals plant.
There has been q bearish attitude
toward the utilities for some time on
account OF the many evidences that
their earnings are likely to be affected
by reduced rates and higher taxes, and
the schedules suggested by the Ten
nessee Valley Power Authority led to
heavy liquidation in the shares of both
operating and holding companies The
average decline in this group was over
a point, with individual shares down
IL to 21a points.
Railroad stocks for no good reason
were made to suffer along with the util-
tiles, after showing early strength, and
at one time in the afternoon were down
Z to nearly 4 points, with the largest
loss in Union Pacific
There were several strong sections to
the market in the first half of the ses-
sion, such as the chemical, implement,
oil and motor issues. One by one they
were affected by the heaviness in util-
ltles and toward the close the entire
market broke to the low prices OF the
day, with a decided increase in volume
OF transactions, which had been only
moderate up to the last half-hour.
wall Street was quick to realize the
eHect on the investor in public utility
shares Of the new schedule announced
10 domestic users Of electricity by the
Tennessee Valley Authority. These
are from one-half to one -third of the
rates now charged in leading cities of
the country. If this is to be the yard
stick by which future rates are to be
measured. it means serious difficulties
for many of the public utility holding
companies and probably smaller divi-
oends by some of the operating units
The selling was heaviest in stocks
like Consolidated Gas of New York.
Public Service of New Jersey, United
Corporation, Columbia Gas g. Electric
and North American. in which the de-
ciines ranged from l to 1l2 points in
the forenoon. Although American
Telephone g. Telegraph was not af-
1ected by this rate situation. it called
attention to the current demand by
users OF all of the facilities of public
utilities for lower rates, so this stock
dropped 2l2 points before midday.
Inc commodity markets were influ-
enced by the early quotations for the
iorelgn currencies. Wheat advanced
over a cent bushel and corn was
strong. Cotton rose dollar a bale in
sympathy with the rise in sterling and
the French franc. Exchange on Lon
don, which closed Thursday around
s4.64, opened above S468, while francs
advanced from ST. cents yesterday to
5:8O. All OF the other European ex-
changes were striklngly strong, espe-
clally rates on Switzerland and on Hol-
land. The dollar was at a new low rec
ord in Paris. This reflected the conf
dent belief abroad that measures are
likely to be taken soon to raise the
price level in the United States.
There IS not, however, any more rea-
son for expecting this than there was
earlier in the week. In fact, the an
nouncement today that the Reconstruct
ton Finance Corporation proposes to
make loans to the banks in substantial
and at 3 per cent rate OF
interest is further proof that the ad-
seeks to employ every
means at its disposal to stimulate bust
ness in normal way before falling
back on the imitation measures which
were voted by Congress last Spring
With the different means for obtaining
credit now available to him, the Dor
rover, with an legitimate claim for
loan, ought to find the accommodation
that he has been seeking and on the
easiest terms in many years
The liquidation in public utility
shares influenced the greater part of
the market in the early afternoon.
Stocks of the power and light COM
panies met little support. Consolidated
Gas of N. Y. and Public Service of N.
J. we're heavy and both off about 20
clear points from their high prices of
the year. American Telephone & Tele-
graph rallied nearly point from the
low There were a few spe-
cialties that attracted attention because
Of their strength. Allied Chemical &
Dye rose nearly points and Harvester
and Deere & Co. point each.
The gold mining stocks were quiet
but steady. U. S. Steel, after dropping
| p points from the opening. rallied
fractionally, though it did not reach
closing levels. The motor
and oil issues were steadiest of the in
1ustrials Rails were inclined to re-
act to the movements in the public
Utilities. The commodity markets con-
,inued strong in spite of realizing sales.
One phase of the gold situation was
he rise in the bonds Of countries on
4 gold basis and the strength in sterl-
ng issues The transactions to !
} clock was 100000 shares compared
with over 100000 for the same period
Thursday