Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-05-21
CLOSING MARKET
DULL AND HEAVY
n,vidend Cuts and Omissions
Unpleasant Results Of Della
ton Program

xsw York, May Il. - Dizziness ana
...v;ncss were the ruling features Of
.odav,s closing stock market. The CT
fsct Of the shock Of the defcrring of the1
f,besapcake and Ohio dividend appar-
s.,Iv had not spent IFS force, but in the
.hsence Of real liquidation there was an
.nnreciablc narrowing of the dealings
Il, IN along the line. At the same time
veek end evening up Of the .professiou.-
s,s contributed to stabilize the list and,
n consequence, after the early DIP the
greater part OF the list driiteu idiy
Tithin a narrow area.
Selling of the rails was resumed at
.ho opening. Chesapeake and Ohio los
mo nj, additional 2 points, but declines
fror, substantial fractions to over z
no;rts were common both among the
,nyostmcnt shares and the lower priced
;as,,cs as well. The Hill shnres wen.
nsrticuIsrly soft, although Union Pa-
r,fc also gave considerable ground.
While some of the industtials stood UP
better, there were many soft spots also
N crop up in this division. Short cover
ins supplied nbout the only support to
ths market, and when this demand auto
mstically relaxed prices began to droop
again.
nl;ed additional concrete testimony Of
continued improvement in both funda-
mental and economic conditions. there
we're others giving painful reminders
al the actual results OF the deflation
nroccss. The inherent strength of the
market. as a matter of fact, was put to
4 severe ordeal. Had It not been for
its thoroughly liquidated condition
there Ia every probability n much diff
!, ferent tale of the weeks price move
ment might have been told. 1t is very
nice and quite comforting when taking
a long distance view of the situation
to have these happenings. indicating
material progress in the constructive
+ program. 1t Is quite difficult, however.
to look pleasant and accept this gradual
progress of the reconstruction while at
the same facing announcements day
after promising a constant shrinkage of
income.
With the announcement of the deci-
sion of the Railroad Labor Board that
wages must be cut, virtually the last of
biz problems which has been giving
the market world no end OF worry.
misgiving and uncertainty was removed
as q value menace. OF course, every
one recognizes much remains TO be
done before the railroad rcadjustmcnt
becomes an assured fact, but the right
step has at last been taken in the right
direction. With so many dividends still
apparently in jeopardy a great many
more appreciate this fact today than
did several months ago. Majority
Of the holders of railroad securities
curiously gnve little thought as to the
maintenance of their dividends SO long
as they received them regularly at the
quarterly or semi annual periods. but
Immediately sensed alarm when the
safety was in the lcnst questioned.
During the five months of the cur
rent calendar yenr many have becn un-
able TO reconcile the lack OF sustaining
power revealed by the market. This at
times appeared to some extent paradox =
icnl in view of the general acceptance
Of the belief Of the worst side Of the
situation having been discounted. il not
over discounted, by the tremendous
shrinkagc in market values. Within
the five months period at least three
forward swings have been started. all
Of which terminated abruptly when
lnanipulative efforts were withdrawn.
Today the twenty active industrials are
nearly IA points under the top prices
made last September and the rails are
nearly ~ points down. The answer is
furnished almost each succeeding day
in the dividend omissions and reduc-
tons. Previous breaks measured the
business depression and the serious
credit initiation. Prices are cruinbing
now because Of thc undisguisad dsap-
pointmcnt in the discovery that. despite
the fabulous profits made during the
war period, comparatively few of the
country's corporation managers pos
sessed sufficient foresight to have laid
away sufficient funds from these i'm
menscly swclled earnings for the inev
liable rainy day.