The sun., 1919-02-25
STOCKS STRONG AND
MARKET Is BUOYANT
Unexpected Dividends Show
Optimistic View of Future
Business Outlook.
Special Despatch TO THE suS

MONTREAL. Feb. 24.-The tone of the
Canadian stock markets In the last week
has been one OF considerable buoyancy.
Domestic and foreign factors both en-
tered into the buoyancy. AT home there
were indications that the slowing down
In business since the signing of the
armistice is viewed as temporary, and
that important interests are not inclined
to take a pessimistic attitude toward the
future. A striking instance Of this was
furnished during the week in the action
OF the directors of the Laurentide Power
Company in declaring an initial quar-.
terly dividend OF per cent. on its SO
500. 900 capital stock.
The company Is a newcomer amons
the larger hydroelectric concerns of the
province and is sponsored by the group
OF Canadian and American capitalists
who have developed the large water pow
ers owned by the Montreal Light. Heat
and Power Company and the Shawini-
gan Water and Power Company in Cam
ada, and the Pennsylvania Water and
Power Company in the United States
The company has been in full opera
ton for only two and a half years. I'm
der the most favorable OF bushes con-
ditlons the reaching of a dividend stage
In that time would be considered an I'M
usual record.
Added Significance TO the decision OF
the directors Is shown In present hesita-
ton in business all over the continent.
Quite evidently the directors, who are
drawn from representative Industries,
| have no fear that the industry of the
| Province OF Quebec is confronted by any
serious setback. Rather the other way,
! because the declaring OF a dividend IN
the face of 1918 earning statement,
/ t.I, ehn o,l, .
| per cent earned, indicates that the boar
! has definite assurance OF still larger de-
| mands for industrial power in the cur
rent year.
| The Laurentide company. one OF the
| leading pulp and paper companies OF
| Canada, controls about 10 per cent. OF
| the Laurentide Power Company's capital
| stock. The declaring OF the dividend on
the power subsidiary resulted In an ad-
vance from 20? to 2os1a In the price of
| that stock. while the stock OF the pa:zas;
| company rose rroin 61Ia 10 81, the bulk
of the gains being held TO the close oil
the week. despite inevitable profit taking
| Another favorable development in the
| dividend was an increase In the regular
! dividend of the Bank OF Nova Scotia
from II 10 16 per cent. per annum.
| Pulp and paper stocks were the main
| feature OF the weeks trading, both be-
cause OF the strength displayed by a
| leader like Laurentide and because OF
the growing optimism on the future OF
the industry. Reasons for that Opt.
mism were discussed on this page las,
week. Other strong stocks besides Lau-
rentide included Riordon. which rose
from 117l4 TO 123 Abitlbi from 6lia to
/ 55Ia and Spanish River from &c. to 7sc
Steels and allied issues were sup
ported by the stronger market at New
York. Dominion Steel Corporation clos.
ing the week at CO.'S and Steel Company
OF Canada at 60sa.
War loans were fairly active with the
strength OF the new 1888 6h per cent
Victory bonds, which touched new high
at 102A.