Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-05-14
DIVIDEND POLICIES
UNDERGO CHANGES
Effect of Recent Trade Re-
cession Is Reflected in Cur
rent Declaration.
BY CHARLES F. sPEARE.

Special Dispatch to The Star.
NEW YORK. May 14.-1n the five
months since the end of last November,
the period covering the most acute
business depression in this country since
1922, no less than 463 American cor
porationS have increased their divi-
dends or made initial payments 10
shareholders. either in cash or stock,
while 1872 companies have reduced their
dividends or passed them.
Beginning with December, study OF
the situation shows that in that month
there were 2os dividend declarations
favorable to shareholders and 81 I'M
favorable. This represented payments
due on January l, which, with July l.,
is one of the periods of heaviest dis
bursements during the year. In the
next month 80 dividends were increased
and 40 decreased The record in Feb
ruary was sc dividends higher and Is
lower At this point dividend policies
begin to reveal quite clearly the erect
of earnings in the business depression,
for in March there were II favorable
dividend declarations and 81 that were
adjustments to smaller revenues. In
April, for the first time. decreases ex-
ceeded increases, the figures being 80
and IS, respectively.
Dividend Policies.
An analysis of the trend Of dividend
policies in the five months diScloSes
the strong sections in the corporation
life of the country and also its weak
spots. Among the prominent corpora
tons that have increased their dividends
or declared initial payments since last
November are: Allis Chalmers, Public
Service Corporation of New Jersey, the
Frank G. Shattuck Co, United Gas Inn
provement Co., Virginia Railway, Amer
q i0ht HeFShaU Chocolate
Corporation, National Buiscuit, Norfolk
g. Western Railway, General Electric,
Boston 6 Maine Railroad, Paramount
Famous-Lasy. Remington Rand,
Coco Cola, International Corporation,
Niagara Shares Corporation, Niles Be-
ment Pond Co., Loose Wiles Biscuit, the
Big Four, Colorado Fuel, Inland Steel
and Westinghouse Electric. Just prior
to the period under review, Consolidated
Gas of New York, National Dairy Prod
ucts and International Match Co. raised
their dividends.
The less favorable dividend policies
are those affecting principally the
motor, radio, aviation, motor accessory,
textile, copper mining, retail distrib-
uting organizations, finance and trading
companies.
In this list dividends that have been
reduced or passed are those of such out
SbdIlQulk COL 40 0bd0SbeASAb
Calumet g. Arizona Mining, Jones q
Loughlin Steel, Marmon Motor Car,
Chile Copper, Empire Steel, Simmons
Co., Sewart Warner, WHY'S Overland,
Curtis Aeroplane & Motor. General
Baking. Glen Alden Coal Grigsby Cru
now. Hupp Motor Car, National BellaS
Hess and Wright Aeronautic.
Investment Trusts.
One railroad the Norfolk g. Southern
omitted its semi-annual dividend of l "a
: per cent on the common stock, in con-
. trast to the several others that have
increased their rates during the period
of acute drop in traffic. One public
uaility company reduced its preferred
stock dividend, and several others,
which were also identified mainly with
. the traction side of the industry. cut
their common stock dividends or passed
them entirely.
a. It Is quite significant that with all OF
. the depreciation that occurred in the
market value of the portfolios of the
scores of so-called Investment Trusts"
!. that we're set up in 1929. there has been
. SO nUJle disturbance in the dividends
initially paid on the common stock OF
these concerns Only a few we're COM
PEELED to adjust their payments to
. shareholders to change in their affairs.
OF these the Shenandoah Corporation
. stands out conspicuously as one with a
large amount of outstanding capital
and a widely distributed shareholders
list.
Altogether the record of dividends so
. far paid Is astonishingly favorable. 1t
. Is an indication of the reserves that
I. most corporations were able to estab-
lish during the prosperous years of 1928
. and 1929. and into which most of them
now feel justified in dipping to con-
tinue dividends, although these may not
be currently earned.
(Copyright 193o).