Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-12-30
DIVIDEND PAYMENT
WILL HIT RECORD
Highest Year-End Total to
Be Discussed by Ameri-
can Corporations.
BY CHARLES F. sPEARE.

Special Dispatch to The Star.
NEW YORK, December 30.-Prepara
tons are being made to diSburse or
Friday the largest amount ever paiC
at this season of the year in interes
and dividends to holders of American
corporation securities.
The estimated figure of such pay
ments is above $1,000 100000. With
the amount distributed on December 15
the total now available for reinvestment
is in excess of $780, 100000, sum
greater by SO per cent. than the total
national debt of the United States prior
to the war.
Incomes and Wages.
The relation of income on securities
to wages and salaries and to the profits
from business and partnerships is an
Interesting one. Today's income tax re-
turns for 1928 show that in that year
the amount entered in income tax re-
turns covering interest was 2,143.-
S57,860. Dividends received on stocks
Of domestic corporations were approx
nately $4,351 100000 All items of
income on securities aggregated $685.
100000. For 1929 and 1880 they were
undoubtedly much in excess of this
figure.
Taking the 1928 figures as the latest
available, it is found that income from
wages and salaries was $10,862 $3.50 1898.
The combined income from business and
partnerships was $5,173,000, 600. Conse-
quently the returns from salaries, Serv-
ices and the profits of business enter
priSes aggregated over $4,000 000, 900
in 1928, against what is claSSed as 'un-
earned increment" of about $4,000, 000,-
600. In other words, the latter item
HHrNfT Won't Of flHn aaT-
Probably about the same ratio will be
shown when the 1880 returns are re-
vealed by the income tax authorities.
The January interest and dividend
payments indicate conditions similar to
those presented in the figures in earlier
disbursement periods this year, when
the amount of interest to be paid has
exceeded that of the same term in 1929
though dividend amounts have been
smaller. AS time goes on the difference
between the two is likely to become
sharper inasmuch as the effect of more
than 1000 dividend reductions and divi-
dends passed will be more positive, as
many of these changes occurred in the
latter part of 1880. There have been
comparatively few defaults on corpora
ton bonds, with the heavy increase in
new bond issues in the first nine months
Of this year expanding total interest
Reductions Comparatively Small.
All dividends now declared are pay
able by check. The paying corporation
deposits funds in the bank or trust
company or with the investment house
which acts as its fiscal agent. These
checks go out by mail on payment date
into every State in the Union. Many
of them are transmitted to holders of
American securities living abroad The
greater part of these checks are i'm
mediately deposited so the effect of an
enormous shifting of funds wears off
within week or 10 days. However,
thousands of checks are held for weeks
BY those to whom they are payable and
these come dribbling back into the
banks.
The chief reduction in January divi-
dend payments is in the group of indus
trial stocks. Very few dividends of
railroads or public utilities have been
lowered. The amount represented in
such changes as have been made is
comparatively small
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