Evening star., 1921-05-12
DIVIDEND QUESTION
2SALL IMPORTANT
BY I. 4. FLEMING.

Ability to maintain dividends on the
part of many of the leading railroad
and Industrial companies is now the
most important question in the security
market. a corporation that can go
through the present dullness with suf-
fcient earnings to maintain regular
distributions is making a record that
will be worth while in the years to
came
business is improving. but it is a
Sow improvement. The revival of in
tereSt is also checked by the uncer-
tdinty as to price liability, the feeling
heing general that adjustments now
uhder way will lead to lower price
levels. and is one that will not down.
II has been enCoura "cd in the last
few days by the cutting OF prices for
automobiles. an industry that had sup
ToSedly come clean" through adjust
u.antS completed during the winter
and carly spring.
This has been partially brought
atout by cutting of prices in steel
ITUductS. reduction of orders on the
hooks of the various companies and
signs of further price cutting. For
two d2y~ talk has been rife of dividend
Passing hy EcpubIic Iron and Steel and
Lackawanna Steel
Fortuna ely for local investors divi-
ti''luS on most OF 1nt local investment
stocks seem safe. Bank shares are
-'"actically sure of their distribution,
- the banks have had good business
steadily and employment for much of
tt 'jr money. either here or elsewhere.
capitol Traction and Railway pre-
,rr, Il should "OHIjnu h - ~ ,d""C!s<
= should LanSton. Mergenthaler and
Washington Gas. the active stocks.
Holders Of Columbia Graphophone
shares have small cause for congratu-
t.x,, !,
divide nd j. fay. TAR away. a some-day-
perhaps. affair.
If the ticker tells anything to a
C4reful observer it would seem TO in
'Gtcatc the passing of the preferred
dividend as well, otherwise ther. prob
.rI, Won d net hav, be-, n ANY bJ gone
GGc'irc from the - of tn" fotation to
tic 50 of tod :.
Local Securities Neglected.
The Indictment weather reduced the
2'icndauce Of brokers on today's scs-
son Of the local stock Exchange and
also the number Of orders. although
the latter vas about uD to tn" A.
cage of the earlier days of the week.
~ is "-ithin the proba bi!ftios that
tx uaImeut preparations are par
tally responsible for the decrcase in
live 81 hIcnt operations.
Sales tOdar included small lots OF
r.;,way preferred 1T G1 =: of Wash
i.-fon Gas -. per cent notes at
lo1i. and a 500 bond Of the Po-
tur-ar Eectri" general rs. at 9i'a:
bid and ASKED prices practically
.:.atam. iarsc7s & 90. Of ph'1a-
d. rnhia h@-e s,ut the fo""vtnE cir
c:slar rcttc' /" the boudho'ders Of
,9o Nsshins1on,; :>iexandrja and
As holder OF he ab"vH secu-
r:t;c. YOU wcr ad,-ise~l that the man
age!ncut of his company was being
gu del by commit" r nraSr ting
~" holders of the no Of the wash
in~tcn-V:rginia Railway Company.
which are Junior I" yor bonds. our
partner. the late Howard s. Graham.
al. tn" time OF his death. was chairman
OF this committee. as well as presi-
dent OF the railway company.
tLew:s Fl. Parsons a partner Of this
firm. has been elected chairman of
the aforementioned comm ,ttee. and
John l.. Zimmerman of Day & Zim-
rIermann. incorporated. enGineers. has
been Gle tcted president of the railway
company. and the management of the
property is now under the direction
of the Day & Zimmerman nm orgapiZa-
tion. which is thoroughly familiar
with the operation. OF electric rail-
way properties.
Recent operation. we are advised.
has resulted in savings in operating
expenses and taxes and il is believed
THAT further Improvement will be ef-
rected. all OF which is to the ultimate
benefit Of the security holders. AS
|you have been informed. every effort
lis being made for the protection Of
the bondhoiders and considerable
sum of money has been raised for the
company by the noteho!ders and other
Interests. This has improved the COM
'panys financial situation. but il is
necessary for the company to ask
the further indulgence of bondhold-
crs and for the management to ask
their Cooperation - Withholding
|presenta tion Of interest coupons for
further period.
Fore'En Finance Corporation.
Foreign Trade Financing Corpora
ton announces thS passage of q strong
rc solution Of approval of the entire plan
Of the ne-hundred- million dollar trade
aid corpora ton by the Missouri Valley
Association and also by grown OF the
american Bankers Associa ton.