Evening star., 1921-08-20
|NDUSTR|ALS SOFT;
RAILS were SLOW
Pressure by Bears Searching
for Weak Spots-comment
on Conditions.
BY STUART p. WEST.

NEW YORK. August 2o.-The stock
market closed today with another
series Of losses in the industrial quar-
ter, but with no general weak
ness. 1t was the same sort of q
market that has been nearly all
week. Professional selling was d.
rected against a few selected issues,
and these were forced down, mainly
because there was nobody willing to
try to hold them up.
The Steel Corporations third sue
cessive wage cut could not have been
construed at all unfavorably. With
the previous cuts it lops off some
$200,000,000 a year from operating
expenses and brings labor cost back
to where 1T stood when the United
States went to war. This is very
thorough dcfation and is one more
important piece of evidence that con-
ditions are getting back to normal.
Neither the steel wage reduction,
however, nor the testimony in the
weekly trade reviews that business
throughout the country was gradu-
ally2mending, had any influence upon
the price movement of the day.
Earnings for the current quarter for
most concerns are going to be worse
than ever, and more dividends re-
main to be lowered or passed.
These Were Influences.
These were the considerations behind
operations for the decline. But there
was also talk, usual at such a time Of
the selling out of certain loans from
sources which had suffered heavily by
the great shrinkage in market valua-
tions.
Motor stocks were notably weak, with
fn lou
Steel common held firm and the in
dependent steel stocks. while lower, de-
veloped no important selling.
Elsewhere the losses were confined to
few specialties. Nothing of conse-
quencc happened in the exchange mar
ket. which closed about where it did
last night
Next Weeks Dividends.
Next week will be important for It's
lot to do with the Immediate course of
the stocks concerned and probably also
with that Of the general market.
The latest word about Famous Play
ers common, the meeting on which oc-
ours Monday, is that the full, dividend
will be declared and paid In cash.
The Worthington Pump dividend on
Tuesday is extremely doubtful. The
company during the first six months
covered its preferred dividends with a
small balance besides but 1t Is getting
no ne% business. and its present orders
will run out before the end of the year
1t Is understood that the Montana
Power dividend on Wednesday will be
paid.
On Thursday directors of Railway
Steel Spring meet, and it is expected
will declare the usual disbursement.
Current earnings are at the rate of
per cent per annum as against the
per cent required for dividends, but the
company's cash position is SO strong
that it can easily afford to make what
ever slight draft may be necessary
upon surplus.
International Nickel.
The decline in International Nickel
was principally case of bringing a
stock which had previously not gone
down very much from it's best of the
year into line with the low valuations
elsewhere. International Nickel COM
mon has been off the dividend list for
over two years. Six months ago it cut
down production to an absolute mini
mum. and. in consequence. the last
quarterly report showed barely any,
thing earned on the stock at all.
Although inventories of $12.213,e4s.
as of June 80, were high. up $500, 900
from September 80. 1920, and. in fact,
right at their peak. the financial con-
dttion Is strong, because the company
owes no money at the banks. Not only
does 1t owe no money, but 1t has
s1.500,000 out on call loans, besides
go through the period of depression,
as 1t has been. with earnings equal
to its expenditures, and with no draft
upon surplus. it will be doing well
enough to justify the present price of
the stock.