Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1921-04-28
STOCK EXCHANGE PRICES
OPEN LOW IN NEW YORK
Traders Profess to See COmplica-
lions In Pending Indemnity Nc
gotiatiOns With Germany.
RAILS TAKE SUDDEN sruRr
! Wall Street The Cut In Pcnnsyi-
vania Dividend Has Been Dis
countci-Mny Have big Effect
ON Investors Throughout l. s..
DN Il. l.. knrnunI.

NEW YORK. April 27.-Priccs on
the stock exchange opened lower
this morning traders processing I" see
complications in the pending indetn-
nifty negotiations with Germany. as II
result OF the action OF France in
promptly rejecting Gcrman?'s pro-
posai. For the first hRlf-hour the
price movement continued downward
Then a sudden spur, occurred IN the
rails, Rcadinl: advancing a iuli point;
Great Northern. Northern pacihc ana
southern Pacific oyer a pom, -,
other general decline. followed by a
long period of waiting 10 hear from
the PENNSYLVANIA directors. fpr-
getting that philadelphia Is on Faust
crn. and not daylight time. Wal!
street began to crowd around the
news tICk.rs at noon. our time, TO Set
Tho first Hash on the Pennsylvania
dividcnd. Tn. announcement that the
annual not" had been reduced from
q per cent To !, ala not com" uutii
of. but recovered under the leader
ship OF Asphalt. another Philadelphia
stock.
Wal Street Disappointed.
Wall Street still believes that Ger
many realizes that the allies are go
ing to force payment OF the ind"in-
nifty, and is therefore anxious TO set
tel. However, while believing that
the door ~ open and viii not be
closed. Wail street made no effort to-
day to hid" its disappointment over
some 81 III" crlid" proposals found in
the fun tex; OF C;ermany's offer. For
example. 1t is realized that payment
Of I per cent interest on ah interim
tionai loan. rs proposed. would cut
half OF what ~ ShOuld he that with
france and other foreign countries
paying per cent here for loans, Ger
nan could not hope 10 borrow
1nOnsy even ar vice. 4 N.r cent HAT
this government would never con
gent To taking Gormany'H bonds "a a
substitute for tho war loans made
to England, France AMI other couu-
tries. unless those countries gU3ran-
tccd the German loan. something they
are no, likciy 10 do.
Must Make toDressinn-.
But u 10 also realized that some
concessions viii have 10 be made by
the allies; hat Ia" S2.OG0.00o Geo hif-
ference between what Germany offers
less accepted must be offset in fu-
lure negotiations by continuing loss
and risk. financially and
cialiy.
lnasmuch as Pennsylvania has al
Ways bean . leader, 81 VIII y. sur
rT!Sing II some OF the other seasoned
dividend paying railroads do not cut
Their dividends. despite tho fact ,har
railway earnings arc noH on tn,
mend. Union Pacific, FOR example. re
ports Il decrease Of only 1913 in March
gross. against the loss Of 2s.5 re-
ported "a month ngo for February
WIN T. corryspundinw Improvement IN
net. Tha, the .railroais are not now
earning their dividends ~ admitted
l'ut t; lis also realized that tho worst
part OF a Very bad year Is over. and
maj The railroad situation is not;
anythinE nke as bad rs It appears
Y" pc on the surface. Illinois Central
ana Delaware and Hudson declared
NOR cSular quarterly dividends to-
dny.
xp, t., fs.,t
In Wall street tho cut in the Penn
syivania dividend has been dis
counted. Eni il, remains 90 he seen
what effect it viii have on investors
t~hroughout The country. Tho test
VII! come when the members OF tho
Underwriting syndicate for the goo
100000 Gr"at Nnrthorn-Nor,horn pa-
clNc Undertake to put these bonds I'm
IN" sands OF the Investing public
IL the railroads had Increased their
dividends out OF large war profits az
many, of the industrial companies 4,
would hc proper for them to return
70 Il prc-war dividend basis hcfo-c
demanding that wages @! railway en-
ployes be reduced. But the railroads
are nov nayin% the same dividends
as IN 1913 ana preceding years. aud
many or ih"m have a large profit nud
loss surplus. out OF which rcgytr
diyidcnds could be maintained until
rcadlustmcnt in ages To "A prc-war
basis IS brought about.
Wal streets overnight impression
Of The quarterly earnings publishtd
iatc Yesterday by the United states
Steel Corporation, * that something
unexpectedly favorable must happen
n even the preferred dividend T.
earned this current quarter. During
the month OF March net amounted 10
only S7.Tii,o00 against Sli.3STO0o for
January, with this greatly reduced
output making the operating cost
nigh ana with the reduction In selling
prices which became effective on
April IL. the company's prospects un-
less something uucNpcCtcdly favor
able turns up. is for net this quarter
OF :3'"un.oop or less. against SS2.2SG,-
600 for the March quarter. and sea-
$4,000 for the December quarter. Net
earnings of only $4,000. 900 would
mean that the quarterly cumulatIv.
dividend of 81 per cent on the pre-
lcrrcd shares would be barely earned.
That dividend calls for 8 .3Oi,06O
quarterly interest requirements on
o~mtstandlng bonded debt are $3.50
Nln. and 1pnrpciDtin "a ma Gin. - .,,,,