Evening star., 1915-01-31

extra into a special fund, to be used to
keep the dividend. steady at 2 or 3 per
cent through adverse years. This, 1T
was argued, would have made re-
liable, even If small, dividend payer
of the common stock, and the lessons
in investment which the country was
slowly learning would have been made
more convincing. Steel common is held
as an investment not by any experts.
but by thousands of little people who
know nothing about investment, but
have graduated up from the old days
when they were fooled with fake oil
stocks and cheap mining stocks, in
variably worthless. and lost all the
money they put into them.
These people earnestly resolved
after their losses to take thereafter
them have since been virtuously buy
ing Steel common to the extent of a
small number of shares. They certain
ly have got something better than the
Oil and mining bubbles, but the cutoff
OF the dividend altogether will be a
common. true heir Of the old-fash-
ioned iron and steel business. mas
querades either as prince or pauper.
and must now. for period, drag its
rags about it and sleep in the gutter.
Its time will come again, however, to
put on the princely robes: not in three
months probably. as it would take mar
VeiouS increase in earnings to make a
/
the steel corporation managers seem
mistaken in their belief of a good out
look. Business conditions said Judge
Gary after the dividend meeting, are
steadily, though slowly, improving. and
it is hoped the resumption Of dividends
may not be long deferred
There is little doubt that the steel
business has beef through it's worst ex-
perience~ and that improvement will
grow from now on.
OF Steel common it would be in accord
with sound constructive policy to es-
tablish a rate which could be main
tained through fat and lean periods
gested above, a dividend-maintena
fund, into which surplus earnings
would be paid In prosperous years to
meet deficient earnings in times like
this"
Favorite Bond Issues.
Some very high-grade bond issues
have been announced. Such issues as
have come out are being rapidly taken
up: for instance. the $29.000.00O St.
Paul convertible per cent bonds re-
Gently offered to stockholders for sub
scription, are selling, when issued"
around 102M. This investment is legal
for savings banks in New York, Mas
sachusetts and Connecticut, yielding
at this price 4.s6 per cent. and subject
lative improvement. Another issue of
bonds is the new Pennsylvania s49,
900. 900 consolidated first mortgage 41ks.
This issue closes the 1873 mortgage.
which covers the main line of the
Pennsylvania from Philadelphia to
Pittsburgh, s51.ooo.ooo having been
sold in the past, bearing interest at
the rate of 31s, and per cent. These
bonds represent one of the highest
class first mortgages. on the foremost
railroad in the country. In line for
probable sale in the near future are
$13. 100000 Erie railroad extended 6s
and a minor issue by the New York
State Railway Company. the control of
which is held by the New York Cen
trail. 1t is expected that before long
many of the other larger railroad sys
TENS will undertake long term financ-
ing, avoiding the possibility of being
compelled to care for short term ma
turing obligations at inopportune
times.
The amount required this year to
finance maturing obligations is esti-
mated at between $700,000,000 and
$500, 900, 900. 1t is not expected that
there will be any difficulty in refund
ing these amounts with new, long-term
securities, as these will be put out
gradually.