Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-12-17
SERIOUS RAID ON
THE SUGAR SHARES
by STUART p. WEST.

NEW YORK, December II Especially.
In the stock market the upturn in
European exchanges passed unnoticed.
Attention was again directed to the
exposure Of various weak spots among
individual stocks. most of these be-
longing to the industrial section.
There was a particularly violent de-
cline in the sugar issues, all Of which
went through their previous lows.
points between sales and American
Sugar Refining, Punta Allegro and
American Beet Sugar were almost
equally as weak. Further lowering
of quotations on refined sugar was
the ostensible cause for this weakness,
and there was more discussion as to
the possibility of some of these COM
panies reducing or passing their divi-
dends In the case of Cuba Cane,
however. the now familiar distressed
selling" also entered in.
Copper shares were heavy and some
Of them weak at new low prices Rs-
public Steel made another new low.
There was a further very severe drop
in Hide and Leather preferred, which
carried the stock to a level where the
question of dividends continuing was
quite seriously raised.
Sterling Higher.
Another jump in sterling exchange.
more violent considerably than that Of
yesterday, was the most notable incl.
dent of the day in the financial mar.
kets. Continental rates were carried
along. but their movement was much
less rapid. At this season of the year
there is quite apt to be a demand to
remit funds abroad, this remittance
covering the first of January interest
and dividends due to holders of Ameri-
can securities on the other side. With
the great reduction in these invest
ments. the sum of these payments due
Europe Is much less than 1t has been
in the past.
Still 1t is of enough consequence to
at least partially explain the sudden
increase in the demand for sterling
drafts yesterday and today.
There has. too. been a considerable
short interest outstanding in the ex-
change market. and it's position has
been weakened on the one hand by the
improvement in the British trade posi-
ton as evidenced by the figures of the
last two months, and on the other hand
by the easing Of money conditions on
this side.
Present selling prices of preferred
stocks represents some anomalies
which it is very hard to ind any sat
isfying explanation for.
One of the most remarkable in
stances is Worthington Pump pre-
ferrsd A, which sold in the market
this morning at rs. According to the
balance sheet at the close of 1919 the
company had cash and liberty bonds
amounting to $8,3oo,0o0. There is only
a bare 100000, representing securi-
ties of subsidiary companies coming
ahead Of the preferred A stock, and
the amount Of the latter outstanding
is only S5.600.ooo.
Therefore there was sufficient cash
and cash equivalent in the treasury to
have paid of the entire stock issue at
par and still have left q balance of
$2.O00.000.
Even with the utmost allowance for
depreciation and inventory the cur
rent assets, apart from the cash and
liberty bonds, were far more than
enough to cover all current liabilities
as they stood at the end of last year.
Again there is American Can pre-
ferred. which sold as low as 70 yes
This company paid out none Of its
war profits to common hareholders,
but put them all back into property.
Its business season was completed
before the great slump Of the autumn,
and therefore its earnings for 1920
will make q good showing.
CruSfble Steel preferred at 81, with
the common stock paying 8 per cent
dividends, which would have to be
cut out altogether before there was
any question OF the dividend on the
undivided surplus back Of 1t, 10 like
wise a difficult proposition to under
stand. Presumably these discrepancies
are due to the tact that tho nsoessi-
ties Of sellers have borne harder on
some stocks than on others.