Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-04-30
STEEL s DIVIDEND
L|CYC0MMENDED
Wisdom of Fortifying Corpora
tion's Position With Large
Cash Assets Recognized

anu why oteel common, on per
cent dividend basis, should be consid-
cred as good as many OF the high class
investments to be had at any time on
per cent or even better basis.
As q rule bankers and brokers agree
with the policy Of Judge Gary, who
made it plain in his address to the
stockholders at the annual meeting of
the United States Steel Corporation that
that industrial or other organizations
that have had the wisdom to fortify
their position with large cash assets
are the ones that will, come out best in
the present period of strained credits
and high rates for money.
That the United States Steel Cor
poration, of all industrial concerns in
the United States, is pre- -eminently in
this position. admits of no question. It
does not need to 90 into the open market
to borrow money, as some other we'll
known corporations have been compelled
to do, at price which a short time
ago would have been considered pro-
hibitive.
A banker. when speaking Of the
strong position in which the United
States Steel Corporation finds itself,
said that the recent decline in the com
mon stock would seem a contradiction
were it not, in his opinion. the result
OF temporary conditions. The general
trend Of the stock market, he said, is
downward today, and, he said. he be-
lieved It would continue 80 iii around
Nav 15: then steel will find ,ts nwn
place again. He said that some of the
! steel concerns in various PARTS of the
country are now beginning 10 feel the
effect of the recent rail strike. and II ia
said. that the immediate prospect in re :.
gard to labor conditions are none too
trouble over May l., but the recovery
since the strike has not been as salts
FACTORY as was expected.
-
While interest in the Reading sesre :
CATION is not as acute as il was IL still
holds its place in the various discussions
which come up in the financial district
| A broker said yesterday that many OF
the opinions offered on the subject are
too absurd to be seriously considered
for a moment. He said, so far as he
can see, there is no way at present to
holdings, and any figures published on
the subject are pure guesswork. He said
80. al AZ snJai sI 'en'usnSy 10 W oSeresti
.hs. .Lste .s sne vs,ues, aitnougn ne aumitteo
= .nas .aele may oe s9ne SURPRISES II tne
standard. Nor does he see that the
IHess;sa.ion Hor;ss Th Si ane ''amdaid vi or tne
.n.siisi 'u''iu"iieS ART
parh,'e. u , Eases: A.. 81,
sso iuIcutcu the iuea OF any
9ruer i1r sesrsgation OF tne Southern
aciuc tanr1aa ironl lss OH lands, hoid :
ing ;L, 1na' & sucn TAX was started for ITS
Possiple thec' on inc price Oh tne rail-
roau s'och. "
|
| Anther banker claimed the decline in
United States Steel common recently
came about largely through the report
that the government had applied for q
rehearing of the dissolutiSn suit. re-
Gently decided in the corporations favor
by the Supreme Court Of the United
States.
He remarked that stockholders should
not worry over any such contingency
as it is most improbable that such an
application would receive favorable con :
sideration.
A banker. when discussing this suh.
iect. said that apparently the Supreme
Court had some good reason to decide
In the Reading case that mere size CON
stituted a violation of the law. hut held
the reyerse view in tho steel cornorat;on
case
The fo,,on;no statemsnt hv CborIoe
TT Sab;n nres;dent of tho Cuoranty
T-,,st e. PNaw Wi nr r,nnatar,,