Omaha daily bee., 1921-08-18
Many People Hit
By Suspension Of
Usual Dividends
Disastrous Effects Reflected
In Banks, Yet Financiers
Note Signs of Coming
Era of Prosperity.
Bv HOLLAND.

Again many Of the banks, e.
reciallv in New England aud also in
New York, will have visible proof
ct the disastrous effect occasioned
by the passing of dividends or the
postponement of the payment of
them. This time this evidence will
be furnished through the action of
the American SugM Refining COM
pany in passing its regular dividend
upon the common stock.
Millions have been invested in the
stock of this corporation. At one
time it was ranked with the highest
grade securities in the United States.
The income secured from its divi-
dends has been replied upon with
as much confidence as Is the interest
payment upon government obliga-
tons. There was time when it paid
~ per cent and then against another
time when dividends were only 6H
per cent. But for 80 years the owners
of the stock have received dividends
until now they are deprived of them.
Upon the income from sugar stocks and
from other stocks in which the public
made Investment was no small part of the
reliance placed for sufficient yearly in
come to meet all personal and business
as well as family expenses. But Of a
sudden the corporations, beginning a year
ago ceased paying dividends or else post
pnned the payment OF them to some un-
identified day in the future. The result
was that many persons found themselves
deprived of income upon which they de-
pended. In many cases the owners OF
these stocks were seriously embarrassed.
Some of them had over-extended their OPP
erations. and were brought face to face
with the imperative need Of securing fundsx
Stockholders Embarrassed.
For this reason banks In New England
and in New York have now for some
months received offerings Of notes which
the makers OF the notes are anxious to
sell or discount. The president OF one OF
district In Connecticut said today that It
was amazing to see the paper laid before
the bank officers in tho hope that 1t
would be bought. Many OF these notices
were signed by men whose business repu-
tation has been excellent but who found
themselves suddenly cut off from income
by reason Of the passing or postponemnene
they could obtain relief from their imme-
date embarrassments except by selling
their paper.
disposed to aid those who have been thus
embarrassed But in New England there
are thousands of women whose sole possess
sions were In the stocks OF corporations
which In the past were excellent and
regular dividend payers but which have
been compelled TO pass their DIVIDENDS.
These women stockholders are perhaps
the most seriously embarrassed of all.
They of course. possess no business stand
ing which would enable them to borrow
money at the banks upon their notes. Inc
passing Of tho dividend by the American
Sugar company Ii the latest OF these
embarrassments.
Passing Of Dividends.
The passing of these dividends, reflect
ing as it does readjustments which are
now In progress, represents causes "hl.n hna.
not represent sudden or emergency con-
ditions of the kind which In the past have
preceded by a few days the ttoa outoreaK @.
panic While these great corporations
whose solvency is unquestioned and whose
is among the most important OF
any operating in the United States are
payment OF them. there are at the same
time many evidences that prosperity has
already begun These things whicn the
corporation have been compelled to do are
" which were established in the closing DAYS
II the war and continued throughout inc
first year after the armistice.
The president of the sugar COMPANY
Earl D. Babst. in few words of ex-Ss'
planation setting forth the reasons WY WY
il was deemed the better part 70 pass
have improved recently and intimated that
he has no doubt of continued improve,
nent, But dividends cannot be pald
Upon immediate improvement They must
have been earned In the past and because
they were not earned II was lhe'iaoio
that they be not paid.
Mr. Babst is not alone in MS view that
conditions are improving. i Is an opinion
,ommonly held by our Industrial leaders
md IL is certainly the opinion held by
hose who have gained authority as IL
,ancial leaders. Some go so Tar as 10
,redict as Judge Gary has already done.
hat we are soon to enter the greatest
.ra of prosperity the world has ever seen.
That prediction was recently made oy
postmaster General Hays. 1t was clearly
minated in some remarks which were
made by Judge Lovett of the Union Pa
ific Railroad company and It Is the view
which is held by A. c. Bedford. chair
nan of the board of the Standard Oil
of New Jersey.
Building Boom.
Insistent and immediate need OF build
ng construction is unquestionably caus-
ng the beginning of very great activity
n this industry. Much Of this activity
, made in New York City w. Ogden
armour who is known TO be cautious
i the making Of statements for publIca-
lon is reported to have said day or
wo ago that tho leaders IN his industry
elieve that the tide of business has
hangeded from ebb to the beginning of
ood And J. Leonard Reploge found
,hile making investig tions in Europe, be-
inning about the first of May. that In
ustrial and other conditions are so i'm
rowing there as indirectly at least to be
{ benefit to the United States.
To Build Nurses Home-The
oard Of trustees Of the Methodist
ospital announced plans to build
home for nurses, to cost 100000