New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-01-21
MARKET NEWS
AND COMMENT
Word of Bethlehem SteeIS
Dividend Followed by
General Decline.
u. 5. STEEL BREAKS
ON HEAVY SELLING
Stocks Show Little Power to
Rally-Close Weak, Near
Lowest Of Day.

The market failed 70 consider Beth
lchcm Steel's initial dividend Of so per
cent. q piece Of good news. The short
interest applied pressure with good
deal Of success. Bethlehem steel it
self broke 25 points, United States
Steel went under IS and losses Of from
/ 10 points were made by the more
active stocks. Tho didivend an
nouncement and the bear raid that
followed came in the noon hour. There
was a feeble. irregular recovery. hut
selling pressure was renewed before
the close and many issues went lower
i'm the last hour. Final prices were
not much above the lowest Of the day
While the war stocks he'd to take most
NJ tbc selling and suffered the heavi-
est losses. declines ranging from CON
siderable fractions TO q point or more
occurred in the sailrosd list.
In spite Of rumors that Bethlehem
steel directors might start DIVIDENDS
on the common stock at yesterday
n Getting. their decision came as sur
prise 10 the market. and the uncertain
~ with which il was received made
easier the operations of those com
nitted 10 the short side. SO great has
been the rise in Bethlehem Steel, so
brilliant the unofficial reports OF It's
earnings. that substantial melon had
been looked for by many when hnaily
owners Of the common stock should be
rewarded for their patience.
I'm 1914 the company earned on inc
common stock q little more than the
80 ucr cent. declared yesterday tor
this wear out of earnings of 1915. The
announced policv of the chairman has
been 10 provide for improvements from
earnings, and if this policy had been
adhered 10 X must mean that the
equity behind the stock was greatly IN
creased before this disbursement was
decided Oh.
Only q few hundred shares Of Beth
lohem steel changed hands during the
day. so disappointment, If diSappoint-
ron+ there were, among owners OF the
stock did not extend far. Just at the
close there was recovery from the low
price Of 400 to 479, which left a
loss Of 6 points on the day. With
Bethlehem Steel on known dividend
basis il is less OF an advertisement FOR
the war group than when a. mystery
10 was advancing 10 600. To that OK
tent Yesterdays news NAV be consid-
cred q bear argument on the war
stocks.
At the start of the day changes
were irregular and the early dealings
were OF the narrow, professional type
70 which the market has become famll-
lar. Trading fell off decidedly as the
morning advanced. but expanded IN the
midday decline and again in the last
hour. Dealings in United States Steel
rose 10 around the 100000 share
mark again Under heavy offerings 1t
broke TO S3's in the middle Of the day
and after q small half-hearted rally
went J. of point lower, where II
closed. j., points down. Persistent
rumors that holders Of the common
stock were 20 be disappointed at the
dividend meeting next week accom-
panied the decline in Steel and did
much 20 unsettle the rest Of the list.
Texas Company fell off sharply IN
the last hour. making a loss OF 10
points Mexican Petroleum declined
over points and pronounced weakness
was shown in the Mercantile Marine
certificates. comon and preferred, Cru
chile Steel. Baldwin and American Lo-
comotive, Studebaker and other spec
ulative industrials. Erie and New
York Central fell back and Canadian
Pacific. though specifically exempted
from the list of American stocks de-
sired by the British government, lost
over points.
Sterling exchange was quiet and
steady yesterday The Bank Of Eng
lard. which recently added TO its gold,
reported loss of some 100000 in
bullion and, with deposits heavier, its
reserve proportion was little lower.