Evening star., 1921-04-11
QUIET, FIRM TONE,
WITH LIGHT TRADE
BY STUART p. WEST.

WALL STREET, New York, April H.
Tho markets were necessarily
Prompt to reflect the encouraging de-
velopments over Sunday in the Eng
lish labor situation. With the danger
Of a general strike definitely passed.
and with the miners consenting not
to interfere with the pumping Of the
mines, thus avoiding the fear Of their
destruction. the worst was over SO far
as the calculations Of the business
and financial community were con-
cerned. The sharp reversal occurred
in the security markets abroad and
in the representative international is
sues here. Sterling exchange jumped
back fully cents in the pound from
last weeks low, regaining about
three-fourths of the entire loss from
the high OF last Monday. Cotton op-
threat Of a vast tie-up in British in
dustry. took their proper part in the
recoil.
The effect Of the news tn the stock
market was . continuance of cover
ing movement in the industrial Sec
Saturday session. There were further
gains OF a half point to a point all
around, with q renewal of still more
active buying in a few specialtiea
Two factors worked. however,
against any sustained upward turn.
One was the raising of the call loan
renewal to per cent; the other was
Pennsylvania. Northern Pacific. Union
Pacific and one or two other of the
dividendpaying railway shares
The per cent money rate followed
the heavy transfer Of funds from tire
New York district to other sections
I.1 fsS, y; ;<,L, r.
drop of the reserve ratio at the New
York bank from 567 to 53.8 and the
simultaneous rise in the ratio else
where. which brought the general
average up from 52.4 to 53.5 per cent
TIE market became very soft dur
ing the afternoon.
Pennsylvania Dividend.
One Of the main topics of conversa-
ton in brokerage and Investment
the Pennsylvania railroad directors
when they meet for dividends on April
81.
In certain quarters it is firmly be-
lieved that the dividend will be passed
entirely. while in others it is felt
stock appears to be discounting some
unfavorable action and again today
got into new low territory.
The point is made that cut in the
dividend rate from SO to 50 annually
would save the company about $1O,-
that if the dividend were cut to less
than 81 year the roads bonds would
no longer be legal investments for
savings banks and trustees. while any
future financing would be much more
expensive than it now is
Strength in New York Dock.
The advance in New York Dock fol-
14x ,l,%s
which has been going on for some
time. and the reason for which il SUN.
ciently obvious in the Improvement
which has taken place in the COM
panys earnings position. It had a
surplus after taxes and charges in
1920 OF q little over 100000. an in
crease OF $142.600 over 1918,
The present year has started out
with q still larger ratio Of gain. For
January surplus ran far ahead Of last
year. nearly $34, 900. and for February
= little over $4,000. Inasmuch as tho
1920 earnings were equivalent to
something over $6 a share on the COM
bined preferred and common, If the
present rate Of increase is maintained
New York Dock will show for 1921
about IS a share on the $4,000. 900
outstanding common and preferred.
which share alike in all profits after
the payment Of per cent on the
latter.
At present New York Dock COM
mon pays 2la per cent annually, but
on this showing 1t could easily double
its distribution to shareholders.
All Of the company's piers with one
exception were released last year at
considerably higher rentals. and this
is the basis for the expansion in
earnings. As these leases continue
at the higher rate for some time
longer profits will not suffer by the
disturbed conditions in the shipping
trade.
II in addition the New York Dock
the company. Eete it's 20 nor cent rate
increase which has been asked for IL
Will create a new source of revenue
for the parent company.