South Bend news-times. (South Bend, Ind.) 1913-1938, 1919-02-16
Peerless Truck.

Peerless shares have recently been
active again, probably in sympathy
with the other motor stocks which
responded to the enthusiasm OF the
automobile show or perhaps il is
merely a periodical exercising" for
which this issue has become more
or less famous. We recall as a mat
ter of fact that the stock has been
advanced to $40, only TO decline 10
around s16 on four previous oc-
casionS.
IL is only fair to state. however,
that the Peerless Co.'S affairs are
improving, but il has not yet reached
the dividend paying stage, and in
fact present indications are that divi-
dends cannot be expected for some
time. An exchange into WHY'S
Overland or Studebaker seems ad
visable. Take heed of Saxon Motors.
which many people considered
cheap.
Southern Pacific.
Southern Pacific Co, on the basis
of the average annual railway OPP
Grating income in the test period as
certified by the interstate commerce
commission for this road and its ten
subsidiaries, should show for 1918
about II percent on the stock. The
percentage on the $272S22,905 CAPT
tai stock may be slightly increas ed
by the allowance of claims for COM
pensation in excess of the amounts
certified for the test period. while It
may be increased to the extend of
substantial fraction on the common
by earnings of the California Fuel
oil department, which should run
close to S1O.OOO.00O in 1918.
Although it is probable that the
government suit will be won by
Southern Pacific. yet regardless Of
the outcome of this case there is no
valid reason why the company should
not increase the present percent
dividend within a few years.
Studcbakcr.
When a stock h : had 25-oint
recession in a few months time IL
cannot he consistently considered a
sale. Rather the contrary
Probably with a view of assisting
the bears TO cover, a great deal Of
apprehension was ostensibly regis
tered i'm financial circles regarding
the continuance of the 4 percent
dividend However. at the board
meeting on Feb. 4. the directors de
clared the regular disbursement.
The Studebaker corporation has
always maintained its net quick as
sets at a high percentage; and as
the company has undoubtedly passed
through its most trying period a sub
stantial reNabilitation of its finances
should De IN order. If one believes
at all in thu future of the motor in
dustry. Studebaker is one Of the
most favorable The company has
always had wise and efficient man
agement. and has constructed trans
portation vehicles for some so years.
I Pursuing the same conservative pol
I icy as heretofore. they should con-
tinue TO successfully operate Cor 80
years more. Candidly. we feel that
! the stock. considering its investment
and speculative qualities. is selling
very cheaply around S51.
stock Dividends.
I'm deciding that stock dividends
are no more subject to income tax
under the 1916 law than they We're
under the 1918 act. Judge Mayer
I has rendered a decision OF great inn
portance especially TO shareholders
of Standard oil companies.
Many of the standard oil COM
panies have accumulated SURPRISES
and can take action on the question
81 s.ocL dividends AT almost any
time. The contention OF Judge
MAYER. unless overruled by the Unit
ed States supreme court. a remote
possibility. permits OF such action
without the stockholders being as
sessed on their portion OF such div
4 idends as income.
In effect. the opinion OF the court
removes the blight" which threat
ened 10 destroy many OF the fine
melons believed 20 be rapidly rip
ening on the Stanrard oil vines.
| As an Indication OF the crop ready