Evening star., 1922-12-13
DIVIDEND CHANCES
FORCE STOCKS Up
Many Leaders Go Higher on
Expectations-NeW York
Central Sells Off.

days, but again most of the prin-
cipal movements were upward
What the street had it's mind fixed
upon was the extra distributions in
stock and in cash which have now
become So much the fashion, and the
buying Of the day sought out the
shares of industrial companies which,
according to speculative gossip. have
these extra dividends in view.
The most striking incident for its
bearing upon the general financial
outlook was the further violent jump
IN sterling exchange. This and the
new high for wheat prices were de-
velopments which are likely to count
more as time goes on. But today the
extra dividend possibilities were the
main consideration.
Equipments I'm Demand.
Baldwin Locomotive and American
Locomotive were bought actively be
causs. with an exceptionally good first
SIN monthS promised in 1873 some ex-
IRA cash disbursement to sharehold-
'rs is regarded as likely. The rest Of
the railway equipment group was
carried along and SO We're Studebak er
and most of the other motors. Here.
too. the incentive is. of course. the
anticipation of a very favorable busi-
ness period from January on.
Sugar stocks were in demand as the
result of the favorable impression
made by recent reports for the last
nscal year and confidence that next
years earnings will be materially
larger, owing to the improved sta
'istical position in the sugar trade
aIId the higher prices prevailing.
New York Central Drops.
Such little tendency toward i'm
W NHGT nvNI h. u Il
way stocks was abruptly checked
by the action Of th, New York Gem
trail directors in declaring only the
regular dividend at the rate of S per
cent. This was q bitter diSapoint-
mcnt to the speculative community.
which. three months ago. was talking &
increase To : per cent. and up to the
very end had thought 4 raise to per
cent was certain. No doubt the strike
losses and the necessity of unusually
be spread over the coming months
entered into the decision of the New
York Central beard. But it naturally
had the effect Of making the marke,
lose confidence in other rumorS OF
favorable dividend Il, ton on railway
shares which have been going the
rounds for some time past.
Exchange Rise Sensational.
The advance in sterling exchange
was even more sensational than or
any day SO far. There was reason
10 believe that the natural forces
working for recovery were being
FASTENED by banking operations on d
large scale initiated in London anG
directed by the British government
itself. These operations were with
held until the season of the heavy
financing OF purchases in the Amer
lean commodity market was at ar
md. Then the time was evidently
deemed fitting to push sterling back
20 its prewar gold parity. where il
was entitled to he by the success OF
the British in balancing their budget
and riShting their position in the
-he goal was only is cents away, anc
II would be reached with another
such rise as that of the last fort
uight.
Royal Dutch Breaks.
For long time past the action OF
Royal Dutch has puzzled people. who
thought it ought to go along with the
rest of the oils. The explanation ap.
peared this morning-the stock
breaking rather sharply again-in the
announcement that an interim divi-
dend of 10 per cent on the shares
dealt in in Europe had been declared
rs against Is per cent at the same
time a year ago.
Pcstponement of the Burns Broth
ers meeting. scheduled for Tuesday
for a week had no significance, sc
far as the recapitalization plan is
concerned. 1t was made necessary by
delay in the prelim!narieS. due to ILL
aess to one of the legal representa-
tivss and the temporary absence
from town of one of the members OF
the board. At the meeting on De-
remher l" it is expected that every
thing will be ready and that the pro-
l,oaal TO retire the present preferred
stocks and in other ways bring the
present common shares closer to
earnings and assets will then be
made.
Sugar Group Active.
Fresh stimulus was given the sugar
group generally today by the publica-
.ion of the detailed report and con-
solidated balance sheet of the Cuban
American Sugar Company for the
tiscal year ended September 80. 1922.
Moreover there Is to be a meeting of
directors. it was reported, on Decem :
her 10 for further consideration of
the cOmpany'S large surplus, which
on September 80 stood at $2o.40o.0OO,
OF over 200 per cent Of the outstand-
ing common stock. An important factor
III the situation is that so per cent of the
,ompany's crop is the product of two
mills which admittedly are the low
est sugar cost producers in the world.
bigger Copper Output Likely.
PenO.nss tne CpIHpletiou ol
,nents for the financing of II c pur-
chase by the Anaconda Copper COM
pany of the Chile Copper Company
the producers OF copper metal In the
nitrd States are understood TO De
preparing to increase their opera
lions which will mean not only great
.-r output. but also lower costs and
subsequently larger earnings. The
anaconda Chile dea! awaits the sig
ual for what is though will he the
approximating $106.000.00 by strong
banking group. and higher prices for
copper metal
Steel shares Also Improve.
Steel shares bore their part in the
upward movement despite the rather
conflicting testimony in the weekly
trade reviews. The Iron Age speaks
of the con - ued high rate of pig
iron Producer through the country,
whereas the steel output has fallen
off. The average is IS per cent OF
PLANT capacity, as compared with the
recent high of S0l2. Inasmuch as ii
* customary just before holiday sea-
son for the steel mills to be less
active this decrease in operations
has no significance. The main poin,
about the steel trade is not the buSi-
ness volume, which is entirely satis-
factory, but the profit margin, which
with the independent steelmakers
remains comparatively small.
On the stock exchange operations
for the rise were well sustained and
come of the active leaders made their
hest prices in the final hour. Another
huge increase-nearly ninety-three
biliion marks-in the Bank of Ger
many note circulation was of only
rcrfunctory interest because for the
;ast month or more these increases
have ceased to affect the mark. In
TACT, mark exchange. if any thing, was