The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-01-21
FINANCIAL NEWS
AND COMMENT
Bethlehem Steel Gets a $50
Dividend, but Stock
Market Declines.
SIGNS OF LIQUIDATION

Now that developments in the way Of
largely increased corporate earnings. re-
stored dividends and increased and ex-
ira dividends are being youchsafed the
stock market, which rose so extensively
last year In anticipation Of such develop
mcnts. IL responding in characteristic
fashion by a display Of sagging tenden-
| cies. Following the responses made on
Monday TO the valuable rights offered
TO Texas Company stockholders. the
market yesterday accomplished further
decline on the announcement of the dec
laration OF an initial dividend of $40 q
share on Bethlehem Steel. tho leading
issue In The war order group and the
one which piloted the IA last year for
the great speculation In corporate
equities in war contracts.
Yet It would be a mistake to lay too
much emphasis on this one aspect OF
the Wall Street day. There was a
continuation OF encouraging reports
about booming conditions in general
business which have been enhancing
real values. but quoted values In all
directions are heavy to weak. Care
ful observers thought that the marker
evinced signs of some ~llquidating move
ment of "A different character from the
selling which had been taking place
lately and 1t was noted also that there
seemed to be "A spread of liquidation In
the cotton and wheat markets, where
speculation for the rise has been stub
bornly holding a long position.
On all recount the disbursement of
$40 a share or Bethlehem steel Is a
reasonable enough sequel to the war or
der stimulus OF industry. but II did not
seem TO satisfy the e~xtravagant ideas
left over from the great buying move
ment In war stocks last autumn. Per-
haps it suggested conservative ideas
which were not altogether TO the liking
of the long Interest; in the war munition
stocks. but IL was not only industrial
|, specialties OF this class which were sub
jected to heavier pressure yesterday.
Indeed tine war order list offered n good
deal Of stubborn resistance 10 pressure,
more so than industrial specialties out
side the classification OF war stocks,
while the general I'm OF standard
shares, rails n indusr-4als, was uni
formly soft. The International list
seemed TO he more sensitive TO tho
actual or contingent liquidation OF for
eign holdings han was the case In recent
months when the stock market as n
whole was rising TO the top OF its ad-
vance.
There was no expansion OF dealings,
which was "A suggestion that the volume
o: stocks pressing for sale was incon
siderable, but II was manifest that COM
mission house liquidation al in larger
proportion to professional speculative
operations for the decline. Little rally
ing power was disclosed and each In.
terval OF dulness was succeeded by q
period OF selling activity. In which sup
port was furnished by purchases for the
retirement OF short contracts. 1t was
obvious that the undo!ng OF Ions com
mitinents under way was working for
the benefit of the stock market structure
but there was far more interest shown
In the question Of the speculative posi-
ton OF the market than there was In the
first half of the week. when conjecture
was most concerned with the outlook
for the restoration Of dividends on the
United States Steel shares and the
probable markctwise effect Of the out
come of next Tuesdays meeting OF the
Steel directors.
>'me indications were also d~lScernible
of a disposition to assume that tho mar.
kct was adjusting itself somewhat 70
the more desperate phases on which the
European war is cvhtring and TO the I'M
certainties OF the domestic political pros
poet. with its complications OF foreign
relations in Europe and Mexico.