The New York herald., 1921-03-30
FINANCIAL NEWS
AND COMMENT
Stocks Advance on News Of A,
r. and T. Dividend--Rails
Are Strong.


easily as they had declined on Monday.
aided by several constructive develop
ments OF Importance In respect 70 the
speculative outlook The decision OF the
American Telephone and Telegraph Com
pany's directors to increase its dividend
from to per cent annually was en-
tirely unexpected The financial COM
munity also was agreeably surprised to
learn that the Administration was TAX
ing up the railroad problem with an
earnestness that Indicated rapid consid-
Grafton OF present contentious OF en-
ployer and employee. Tho washington
dispatches underscored the significant
point that high freight rates are found
to be undermining business in Industrial
sections, which was interpreted as indi
eating that the task of reducing costa.
preliminary to lowering carrying charses.
would be aimed at In the coming confer
ences between Government officials on he
railroad question. The upturn Of stocks.
which presumably was again chiefly at
the expense OF the short account. was
also furthered by the appearance OF size
able amounts of call money at IA and
even 8 per cent. The rate for loans on
the New York stock Exchange, however.
continued the regular performance OF
opening at s1a per cent. and latsr ct
ting down to per cent
Outside Of the exceptional advance of
sh points by American Telephone and
Telegraph there was little to distinguish
the strength Of industrial and public
utility issues from the strength of the
rails. The sensitive character of The
market was amply emphasized through
the fact that prior to the development Of
the upward swing there was In the
| morning a renewal of bearish effort to
get prices down. This met with con-
siderable success for time and clearly
made more forceful the recovery once 1t
mad got under way. In the final ar
ray of prices gains of l n to more than
points were recorded by Baldwin. Bal
timore and Ohio, Chicago and Northwest
ern, Crucible Steel. Mexican Petroleum.
Reading, Union Pacific and number OF
others. Realizing sales in the last half
hour had slight effect on the price tone.
which was strong to the end.
The rise OF the telephone company's
dividend Is certain to come in for at
tack In some quarters, but the purpose
Of it's directors action cannot holp bus
receive support IN financial circles. That
the company could have paid moro than
s per cent has been evident for several
years: instead OF higher rate going to
shareholders. however, the management
elected TO return many millions to new
property. In the last ten years the
company. after providing for upkeep and
depreciation, has set aside nearly $780,
100000 for surplus and contingencies.
funds which might have been applied.
in part at least, to dividends. The con-
tention of the management that a high
return to share owners is necessary in
order to keep attracting through stock
sales new money for the extension OF the
business is sound, but 1t might be con-
sidered rather unfortunate that the in
crease should have been decided on at
time when applications for rate in
creases for subsidiary companies were
being pressed.
The closing down of the Anaconda
Copper Mining Company's mines. as we'll
as those of such important producers as
Utah Copper and the other porphyry
concerns, might have had a depressing
effect on the stock market had there
not been other offsetting factors. But
the state of the copper market and the
size of accumulated supplies had fore
cast some such decision by copper pro-
ducers and the cessation OF operations
was received with apathy. Evon the
copper shares failed to respond with a
decline.
The foreign exchanges were Arm,
though rather inactive throughout the
day. Wheat gained a little ground but
cotton fell back. led by severe reaction
in Liverpool. Fear of a coal mine strike
In England was back of the fall OF prices
over there.