Evening star., 1921-04-26
Taxing IS
PLAINLY. Y.Ev|DENT
Some Very Strong Spots De-
veIoped-CentraI Leather's
Report Was Discouraging.

NEW YORK. April aS-Today's mar
ket was made up of a series OF very lr-
regular fluctuations. with wide difference
between the actions of individual stocks.
This irregularity did not reflect any
lessening of the better feeling in specu-
lative circles which has been in evil
dence for the last week or more. 1t
simply meant that certain stocks had
had enough of an advance temporarily
to attract heavy profit taking and that
these speculative profits were being put
into other issues which had not par
ticipated to so large an extent in the
recent rise.
Again there was no particular response
to the latest diplomatic parleys over
German reparations. Such Information
as reached the financial district during
new German proposals had impressed
Washington favorably. thus making the
prospect for settlement still brighter
than it had appeared yesterday. But
it could scarcely be said that the out
come was a factor of supreme I'M
French francs reached d new high
for the year, and sterling held its
previous gain, but the strength in
exchange could have been referred
entirely to the steady improvement
in the economic situation in the al
ures of tho French foreign trade in
March and the equally impressive es-
Inmates yesterday for the British
budget have furnished tho strongest
testimony on this subject that has
yet been given.
Sugars Are Soft.
Sugar Stocks were the one point
of weakness in the share list. The
break in American Sugar to it's low
Of the year, with the next quarterly
dividend about to be acted upon. was
regarded as significant.
Cnfavorable action is also antici-
pated on other sugar dividends
especially on the Cuban American
Sugar rate.
While sugars were going down and
profit taking was making itself felt
in such recently popular favorites as
Mexican Petroleum, Studebaker. Amer
ican Wool and some of the minor oils,
fresh buying, along with much short
covering, came into the Independent
steel shares. while the entire copper r
group made new highs, the shipping
stocks were strong and special de-
mand appeared for the telegraph and
telephone issues.
The rise in the independent steels
was started by Bethlehem B. which, it
surprisingly favorable statement
for the first quarter.
Central Leather's statement for the
f1rst quarter of 1921 turned out to be
exactly in line with the forecasts.
Fully month ago it was said that
last year from s30.500. 900 to s4.757, 900.
would be almost wiped out by the
further losses incurred up to the end
of March.
The figures actually show that the
deficit for the quarter was nearly a.
re vNf~ III; I.
was incurred in write-off for depre-
citation and inventory Of $3.50, 900.
This brought the total remaining sur
plus after allowing for the preferred
dividend due April l. down to $223.000.
1t takes not quite 100000 to meet
Leather preferred.
The question whether the directors.
when they meet next month. will con-
tinue the present distribution or not
will depend upon the extent Of the
Improvement in the leather business
which is known to have occurred.
II the management can see its way
clear to covering dividends out Of
current earnings 1t will no doubt feel
strongly impelled to keep the record
of continuous payments unbroken.
: But IL the turn for the better has
not been sufiicient TO bring earnings
up to dividend requirements. and a
further dip into the meager surplus
were necessary. passing the dividend
could hardly be avoided.
Telegraph Stocks Firm.
There was nothing new in the sit
uation in telephone and telegraph
stocks to account for their upturn to-
day. American Telephone on it's first
jump from around 100 to l0sh, fol-
lowing the unexpected raising Of the
dividend, had to absorb a great deal
Of profit taking. This selling forced
the stock back several points. But an
even greater amount Of new buying
has been coming in continually from
investors who figured that American
Telephone could easily sell on an 81
basis. namely. 110. This was the the
ory back of today's rise. The advance
in Western Union was sympathetic.
Pacific Telephone. a subsidiary Of
American Telephone. got up to . new
high for the year.
Chicago. which for some time mast
has been exceedingly bearish on
SearS- Roebuok stock. has suddenly
turned buliish. and word from there
today pointed out the reasons for
tho change in sentiment. Chicago be-
lieves that with the turn in the busi-
ress situation Sears Roebuck will
be able to pay of tho $500. 900
show a surplus for the year. anu
that the earnings will warrant the
directors in putting the stock back
on q dividend basis Recent state
ments Of oniciais Of the company
have told Of the change which has
come in the business Of Sears-Roe-
buck,