The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1918-01-22
MAsrEN'S MARKET REVIEW.
The Steel Dividend.

The steel Dividend.
FITTSHCRGII, Jan. pa week from
TEX. Tuesday directors OF the steel cor
pnration will take action on tho quarter
" dividend and the statement OF earn
inss for three months ended December
31st last will hc published. Tho COM
mon stock reacted sharply TINS week
from the recent toy OF the rally ana
some traders construed the movement
as fcrcshadowing something un.arpr-
able at The coming directors meeting.
II will hardly be Il surprise TO anyone
OF the extra dividend On steer COMMON
is reduced this month.
If this should he done i VIII not bf
on account OF lack OF earnings i"r inc
quarter, nor because Of any new defci-
opment In connect ion with war taxes
but rather r matter Of policy In line
With keeping strong in liquid assets
Some large and exceptionally strong IN
dustrial companies nave this month
been largo borrowers on one and two
year notes and they have been COM
u,!lctl 10 ray approximately per cent
for the accommodation. This borrowing.
in ri ln:st two instances, was due en-
firc!y 10 war conditions which inTolv"
tho carrying OF larger inventories. Tine
Steel Corporation is hy far the largest
uEit engaged on war orders ana us IN
ycntori@S--and therefore financial needs
arc corresponGingly large. II the extra
dividend on steel common is rcduced
mo one looks for the extra 10 he en-
,ircly climinatcd) il will DC due 10 war
policy and not to lack OF earnings.
II tho extra" on Steel Common
should be cut in halt--thnt is To sag, II
only ! !. pcr cent extra 10 declared TOT
the quarter. the stock would sill! pay |!
per cent on par md this weeks low
price may he regarded "a having fully
discounted such event.
The reduction in III" Wiilys-OverlanG
dividend this week from q u per cent
per anuurn rate to per cent was OIL
rially rxTlnin"d ~ war measure. II
: is wholly probable that other "Gar
hrides' will take similar acti"n--hu!
This is what thc market has been artici-
pat!ng.
Railroad Investments.
Tho price movement In railroad stocks
covered A comparatively narrow range
this week If it had not been Tor In"
action Of the government IN "takAng
over" the properties for The duration ri
Tho war and assuming their financial
obligations, il IS virtually certain That
railroad shares would hc quoted at a
much lower average than tnrT arc to-
day. We 10 mot recall :; inc when rail
lransportati ton attempted 20 operate un-
der more adverse conditions than those
prevailing during thu Inst three weeks.
Snow and zero weather, lack "f sufri-
cient labor and Il continued famin" in
, fuel haze made I combination shat par
, alvZrG operations on HI" best roads ar
rho country The effect WAS In reduce
gross earnings and increase expenses
and January not. will probably be the
smallest for any month In years. Con"
grcss mas not yet enacted legislation
binding the government To the tentative
noliCy announced In the president
proclana tionaSsuminE control pr I'll" Six
teen biilinn's worth of railroad proper
tics, but no one doubts that il will take
such action. Virtual cnntlscatinn of the
legally acnuirrd property ni American
citizens would mol harmnnizr with III"
ethics which control eur conduct Uf the
war. -
However. comparing prices Of railroad
invrS lmrntS with the yield available on
ruuallv high class Industrial s"Curii les,
and with thu rate available in ~" short
term notes that hay" been offered for
SulIscrrtiu tn" past two weeks "" are
forced "a admit inal there IS not much
argument just now for further adj
vance In railroad stocks. The latter
Yield g.: il - percent. while indus
trials yield 10 Il percent. ar NOR" ana
one AMI tx" year notes 81 som" ~ "ur
hest cnrprratious this wr' k sold "a yield
: percent ur more.
Repud!at1ug War Bonds.
Tin, frs. suggestion Of r'rudialirn Of
var houG: cam" from Russia this week.
, IVhrn tin. wlr WAS less than two years
oil. III" subject 1T rational reputation
WAS GiSruYS"l IN m ararirmir way and
, tn. n"nvy fail ~ German. Eu>%inn and
Italian ."xrhnn::" waS referred t." aS the
measure nC depreciation in the credit
III lh"~.. unt!ul:. The cos: at m"i!"rn
warfare. r;ns IN such Il stuuc ni"u@ scale
aS In lr staggering. Since then many
! additional l,llimns Of war loans have
l".n nur,"d and timer" Is 10 positive rr-
! f,lcrcr as VT HAT even in commercially
isolated Germany. that naiinn is at the
,nd q: her financial resources "r short
| - var materials IL an extent IN inn
| mir nor resistance.
Thn u,,yG from rcirnGrld this week
! ,l,gt j, ,"aG proposed 10 rrDudiatr "Xtrr-
nal debts nun II Il" lik'wis" with inter
nal debts where the holdings WAS in rX
i',..,r 81 81 rD0 was fril"wcd by n col
laps. in the ,marhrt valU" "f Russian
hru,:s quoted in N"w York. In this con-
! nrctiun two comments arc permissible.
! 1'l,. first Is shat rh"r" has been Tra"n-
,,al:v no market fer Russian securities
In. tho United S;at"s nnd reported flur-
, u.a;imns "r thru sn"uld not II" tak"n
TOO seriously Tn" second comment is
that The ;rfnpns"d Reputation WAS made
! hv ~" Rulsh"viki party. whose t"nur"
If office is rrcrari"ns and who's" power
tn maintain even domestic order Is no.
toriuuslv wrrk The alleged government
nr Russia In ,ract. has not tn" authority
or rnwcr If 4 village constable in any
! nation. and before II could carry Us
prcnosad rcpldIation Into effect another
I fnrtinn. more familiar with the rrlnrI-
ples Of political economy and more I'm
1ruserd witt, obligations or untinnai