Salt Lake Telegram | 1931-06-09 | Page 14 | Shorts Hit Stocks after Quick Rise

SHORTS HIT STOCKS RISE H Profit Taking Appears it in Afternoon Progress Made in Morning NEW YORK June 9 The stock market had to contend with taking profit and short selling durIne durIng dur- dur Ine Ing hours Tuesday re reversing re- re Its course of the tho morning when the recovery recover made substantial progress in most departments Net losses of OZ 1 to 4 points cropped out in most of the active shares which had been roughly that mud much above the previous close at the best prices of the day Railroad and foreign for for- eign bonds firmed Trading M both markets was dull and sales of stock approximated only shares DIVIDEND CUT CUTA A cut In the Western Electric dividend divi denci had an unsettling effect shortly short short- I ly after noon and American Telephone Telephone Tele Tele- phone broke sharply closing 4 points lower United States Steel was off 2 4 1 and American Can 3 Consolidated Consoli dated Gas General Electric General Gen Gen- eral Motors Rock Island National Biscuit Radio Union Pacific Woolworth Woolworth Wool Wool- worth and Bordon lost 1 to 2 WestInghouse West West- Case and Air Reduction dropped 3 Auburn tumbled 18 Western Vestern Union rallied nearly 2 on declaration of the regular dividend Norfolk Western rose 5 and Atchison Atchi- Atchi son 2 points Decision of the southern railroads to total fall into step with whatever rate action Is decided upon by the eastern carriers was interpreted constructively constructive constructive- ly since it indicates that the petition petition peti peti- tion to bo be placed before the Interstate Inter inter- tate state commerce commission will have havethe havethe the general support of roads in all sections The first estimate of steel ingot production for the past week an sup supplied plied by American Metal Market Marke said there had been no measurable decrease and that the decline from the spring peak had held to seasonal proportions Steel shares were probably probably ably anticipating a sizeable reduction reduction tion In United States Steels Steel's backlog back back- log figures on which will be published published pub pub- at noon tomorrow Closing of 12 more Chicago banks announced shortly after noon here found the market reactionary and probably had somewhat more effect on speculative sentiment than did the banking developments in that city yesterday HITS flITS PHONE STOCK The reduction in the Western Electric dividend to a 3 annual basis from 4 affected American Telephone Tele Tele- phone which owns virtually all of the outstanding stock in this manufacturing manufacturing manu manu- subsidiary Western had to dig Into surplus to meet dividends on the theold old basis last year and operations operations oper oper- so to far in 1931 have been well below capacity Wall Vall street heard that this was T the only oily unit of the Bell system which was making a markedly Un unfavorable favorable showing The weekly condition statement of federal reserve member banks dis disclosed closed another substantial reduction in collateral loans This time the drop was bringing the outstanding total down clown to or nearly one and three billions under a year ago Sonic Some bankers look 1001 for still further liquidation liquida liquida- tion of these loans and alid it has been pointed out that the advance in stock prices might facilitate a quiet contraction News from the commodities cm- cm braced a rise In the PI price Ice of platinum accompanied by reports that producers producers pro pro- planned a conference in London Loudon Lou Lon don to discuss curtailment of output There were no developments in the copper market Credit rates were stationary Call loans on the New York stock ex exchange cx- cx change renewed at what has come to tobe tobe be regarded as the pegged rate 1 2 1 per cent