Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-12-16
MARKETLACKS
BUYING power
Little Support Shown When
Bears Continue Attacks
-. on Stocks. 7
BY STUART p. WEST.

BY STUART r. WEST.
WALL STREET, New York. Decsm-
Der 1s.-The reduction or passing al
together Of various Industrial -divi-
dends, stimulating as It did pessimistic
talk about more such action to come.
was the chief influence again In the
market today. There was not, the
slightest doubt these predictions OF
dividend cuts will prove to have been
quite a. much exaggerated as similar
predictions Of dividend increases
turned out to b a year ago. Still, as
an immediate factor in inducing sell
ing and intimidating fresh buying. this
sort Of gossip does count considerably.
and 1t was the main thing governing
the course Of prices today.
Shorts began another aggressive
selling movement in oils and steelS at
the outset Of the session. baaing their
operatl tons on overnight advicea most
Of which accumulated the discour.
aging outlook In commerce and in
dustry. !
Few Brisk RecoveRfes.
There were a few brisk recovAries
from early recessi ons. but the mar
ket showed little support or buying
power. Bears continued their attacks
against shtpp4ngs. steels. equipments
oils and motors. where reactions ran
from to az pointal United States
Steel was the one prominent stock to
resist pressure. losing only frac-
ton.
Steel Bear's Mark.
bear side was directed against the
steels. Yesterdays trade reviews had
prepared the way by pictufing a
further reduction In operations at
the mills and discussing wage cuts
and other plans to lower the cost Of
production: The trading element be-
gan to talk about the dividends of
some Of the Independent concerns not
being any too safe. and 1t was this
sort of gossip which accompanied
the selling of the stocks.
The bear campaign made quite a
bit Of progress in the case Of Cru
chile. Lackawanna Steel was driven
down again below so. and Republic
Steel for the frst time below so. But
no such success attended the selling
In Steel common. Bethlehem Steel
and Midvale. With Steel common at
was inclined TO identify as repre-
senting very important banking in
terests bought some 1000 shares.
The latest word from Midvale
Headquarters is that the dividend Is
regarded as secure. AS for Bethle-
reason to believe that the IS divi-
dend cannot and viii not be main
tanned. through the period of depres.
sion. Bethlehem will earn this year
125 a share. or nearly half what the
stock Is selling. for In the market
NJ
sQual to $145 a share for the com
bined issues OF A and B stock has
been set aside out OF earnings and
put back.
While. however. there was consid-
cradle weakness in many directions
AID violent selling movement of q
tons. the railway list gave fair
account of itself. Atlantic Coast
Line. which 10 typical southern road
traversing the territory which has been
ton. declaring its usual dividend todav
ana declared IL for half q year ahead.
This ought to have been an sneWer
10 those extremists who are fndujg-
ing in lot Of wild discussion abunt
The position Of the railroads ~ Il fl
The action Of the vsnadiunn sseei
directors In only reducing the divi-
dend on the stock from S0 TO 81 and
not passing It entirely was looked
upon with favor in many quarter, in
Wall street today. It can be stated
positively that the vanadium Conn
pany was In Z. position to continue
to pay the dividend at the Sc rate
and that several Of the direc&ors were
agreed on this action before the
meeting. The vanadium Company
earned In the month Of September
alone, according to those in a po-
sitton to know, at the rate OF $24 .
year. the monthly profits being some
thing like - q share. which was more
than enough to pay the former rate,
other months were just a. good.
American Car and Feunary.
One Of the stocks which has given
2 good account Of itself this year
Is American Car and Fouadfy, which
dend payer. at least for several years
to come. It utilised the large earn
tngs OF the war period to strengthen
Its financial position. During the
past four years earnings amounted
to $117.Ss a share for the common
bursements Of ss4:5o. During the
past year earnings have been largely
from repair work. as few orders have
been paced with any the equip
ment companies for new cars. For
eight months there were purchased
in the United States for domestic use
or shipment abroad only $500. COM
100000 freight cars during the next
three. years. Next year American Car
and Foundry should Commence to feel
this demand.