The New York herald., 1920-01-23
News and Gossip
of
Wall Street
GOLD At PREMIUM IN LONDON.

In private cables from London ycster-
day it was said that gold in that market
was quoted at 1l5s. Cd fine ounce The
normal price Of gold is s5s. a fine ounce.
According to a statement by Sir Lionel
Phillips, Bart, directing head of the Rand
Mines, whose shares have been listed
here, premium of IS per cent on the
1918 output of the constituent companies
would have enabled that coApany to pay
total dividends Of IT'S per cent. IA premium
of 20 per cent would have permitted total
dividends of 205 per cent. The present
premium, therefore, based on these esti-
mates and based on the 1918 output OF gold,
which was year of relatively low pro-
duction on account of war conditions,
would have permitted total dividends to
Istockholders of almost 800 per cent
GOODRICH DECLINE PUZZLE.
Goodrich's decline was unexpected in
view of the extra dividend of half of l
per cent and the further announcement
that the stock will be on a regular s
per cent basis beginning with the May
declaration. Rumors that the company
intends TO increase it's capitalization by
an issue of new preferred stock have at
tended the decline. They are flatly de-
MED, however. by persons who know what
is going 'on i'll the company. II is learned
that there was heavy liquidation of Good
rich earlier in the week by owners who
desired to take advantage of the apprecia-
ton in the price of the stock. They sold
because the Goodrich company is suffer-
ing from a shortage of cotton fabric re-
quired in manufacture of tires. ON the
other hand. it is a fact. possibly little
known, that the tire business of the Good
rich company comprises only 40 per
cent of all of its activities. 1t has an
enormous and well diversified rubber man.
ufacturing business.
II. II. AND IT. ACTIVITY.
Activity in Pacific Telephone and ele-
graph was one of the features Of the mar
ket That issue closed at AZ, a net gain OF
points. The properties of Pacific Tele-
phone and Telegraph We're returned to the
stockholders by the government last -lu-
gust Since that time the company has
reported steady increase in earnings
which 1t is said are running at the rate
of more than 81 a share.
OCEAN TONNAGE RATES.
Some selling OF International Marine
stocks is emanating from Washingt~~ ac-
cording to houses with connections there
The selling is based on talk of declining
ocean tonnage rates and superabun-
dance of bottoms as well. Recent gossip
that the American International Corpora
tion has been liquidating its Marine shares
is ridiculous for the obvious reason that
the American International never owned
any Mercantile Marine common stock. Its
interest is in the preferred, which It re-
CARDS as a most valuable asset. An old
pool in Marine common is believed to be
liquidating, however. while the theory also
is advanced that the James Wallace es-
tate Is selling.
sTEELs NEXT STATEMENT.
ell
common has been chiefly for account of
professional traders, who anticipate q poor
earnings statement for the last quarter of
1919. The statement for that period will
he issued next Tuesday. when dividend ac-
tion also is due. II is conceded by friends
of Steel common that the statement in
question is likely to be indifferent. The
quarter covered the second half of the
strike period. The company was handi-
capped by q shortage of labor. On the
other hand, attention Is drawn to the fact
| that the market looks ahead rather than
behind. The steel industry is flourishing.
There is large accumulation of orders
| which have backed up" because of rush
OF business The Steel Corporation has
found II necessary to exert all Of its power
full influence against an advance in prices
/ Of steel products. In "a word, the future
Of the industry Is bright. 1t is contended
that there ia no occasion for pessrnism on
| Steel common.
COLORADO FUEL DIVIDEND.
| Weakness in Colorado Fuel Is believed
TO foreshadow omission of the dividend
at today's meeting of the Board of Direc-
tors. The present rate is sS a share on
the common stock. 1t Is believed that the
earnings for the December quarter were
even worse than those for the September
quarter. The latter wero poor. After
fixed charges and preferred dividends
there remained balance of only *l4i
share on the common stock. During the
last three months of the year the man
agement had to contend with shortage
Of coal and the strike OF steel workers.
CUBA CANE SUGAR bonds.
Some of the larger stockholders of Cuba
Cane Sugar hopo to receive information Of
n very encouraging nature regarding that
company at meeting TO be held az the
! Recess club today ft Is understood mat
| bankers who belong to tho syndicate which
underworld the recent issue OF debcnture
ponds win lie present and will tell OF the
latest Developments in the Cuba Cnho
business II also is belieV cd thatthey WIZ
have something to ssy regarding now tha'
offering Of bonds is going. II has oeen
privately rumored that about haf oil inc
bonds have been distributed to permanent
!