Evening star., 1921-05-17
DIVIDEND OUTLOOK
GOVERNS MARKET
Many Uncertainties in This
Matter Encourages the
Bears to Effort.

NEW YORK. May 1.-THE inme-
diate point of interest uas the div
dcnd action 10 he taken by some of
the industrial companies. whose husi-
ness position is comparatively unfa-
forable. and the extent TO which Gu
tinE or passing of dividends has bccu
discounted al tho present price lc,-
els. tSocks of these companies were
driven in the carly part of the day.
but their weakness did not prevcr'
IN resumption OF buying in other di
rections.
aGs shares we're in demand again
Tor the reason. now well appreciated
mat their costs are coming doun
While their rates are going up
Leather stocks were heavily bought
on the knowledge that their products
are selling much higher than they
were even month ago. and that IN
consequence their inventories are be
ing marked up sharply.
! Dividends ProbIematIc.
-. the socks the dividends Oh
winch are heiieN.d 10 be in danger
! Republic steel. New York Air Rrah
and Pullman among the industrialS
! ana Great Northern preferred and
Northern Pacific among the rails
! were tine "nts which suffered most in
the carly selling movement
Action viii be taken on dividends
OF Republic Steel and Air Brake to-
! morrow. but again it was question
whether the effect of dIvidend cuts
has not been pretty we'll measured
, in these and other cases
Cuban Amor rican Sugar. the divi-
dend on which, il is thought. will b"
cut in two at tomorrow meeting.
was decidedly strong.
ttah Conner went nm not dou-n
following the publication of the rt
port of the first quarter. showing =
net deficit after dividends Of $I.1I4
geo. as against surplus last year ~
These were two instances in the
operations of the day which shovel
the markets capacity for resisting
| bad news"
New Yok Airr Brake.
Directors Of the New York Ar
Brake are scheduled to meet tomor-
row TO act upon the dividend. As has
already been pointed out the com
pany has suffered even more than tn"
suspension of railway buying. and its
outlook for new business is equally
dubious since revival in railway pur-
chaseS is not locker for for several
months yet. In View of this fact and
owing to the lavish distribution 10
believed that the dividend will h"
sharply cut The stock has been DIS
counting this in its recent decline.
In resume OF the market position
The Market Position.
of different sets of stocks. sent ou'
by a Broadway wire house today. II
was pointed out that while this viii
not be a year of big profits for many
concerns. ii will be year of Rccumu-
lafinp hank and strength
ened financial conditions.
Referring to the steel. it was said
company will earn its common divi-
dcnd iris year The motor industry.
this writer declared lis bad, and
threatens to become worse. Ford
alone is maint aiming production. bu
even here slowing up is expected
before July
In the oil group. the American o.!
shares will beirregular so long as the
Standard Oil Company continues I"
cut prices. Industrial stocks viii
coptinue to act in groups Woolen
and Leather industries alone aDpear
Debated. while thc others ruSt NEE
changing conditions. AS 10 the equip
ments ii is extremely doubtful II
ment until the last quarter Of IT,
year Therefore, it is doubtful
equipment earnings are not disap-
pointing for some time 10 come.
The tire industry, unlike the nloto"
industry. is believed to be thorough.
Dictated.
Tho rails. coppers and public util'-
ties have long since passed their j.
fiation point.