Evening star., 1932-01-29

the company's income, it is evident
that payn entS Of dividends on Penn
sylvania Railroad stock cannot con-
tinue, according to an official state
ment
Net earnings last year, the statement
continues, amounted to only slightly
more than 2 per cent, or ST share,
as compared with 81 per cent actually
paid out. The difference had to be
charged to surplus.
This point of view is we'll taken, but
stockholders may perhaps inquire
whether a corporations surplus should
not be utilized for the disbursement of
dividends in lean years when created
out of earnings which in the final an
alysis belong to stockholders.
Ample provision has been made to
take care of all estate and Federal
expenditures in connection with the
death of william Wrigley, jr., accord
ing to his son, Philip K. Wrigley. This
statement was prompted by widely cir
culated rumorS to the effect that the
late Mr.. Wrigley's holdings. of the COM
pany'S stock would be sold for inheri-
tance taxes and various other purposes,
thereby tending to depreSs the market
IN Wrigley shares. The sons remarks
should put to naught one more oppor-
tunity which spectators for the de-
cline have been looking forward to.
Although net profits of F. w. Wool
worth for 1881 established new high
record, it must be borne in mind that
figures include profit on the sale of
securities of the British subsidiary.
These amount to about Sl.O2 a share,
and should perhaps be regarded as a
homecoming item. Without allowing
fer this figure, the companvs showing
last year was equivalent to 1922 a
share as compared with an earlier esti-
mate OF $3.65, and with S3.56 in 1890,
If the additional income is taken into
account the profits per share last year
aggregated S4'24, or approximately
one-tenth the prevailing market quota
tions.
The Sun Oil Co. is one Of the very
few large industrial enterprises in the
United States which has not reduced
wages.
This policy, according to ]. Howard
Pew, president, is justified because
great increases in volume have been
obtained without increase in the work
ing force.
Mr.. Pew also directs attention to the
fact that the company'S extensive
building program has been financed
chiefly from the depreciation account.
operating earnings remaining after
payment of dividends and from reduc-
tion Of accounts receivable
Senator Johnson from California, is
apparently aiming at the very thing
which, in his opinion, has been the
cause OF so much grief. He advocates
the creation of a foreign loan board to
supervise foreign loan flotations in the
United States.
The board is to comprise the Secre-
tary of State as chairman, the Secre-
tary of Commerce and the governor of
the Federal Reserve Board According
to the Senator's bill, it would base its
conclusions on the general financial
status of the borrowers, the security
for the loan and remedies in case of
default.
Senator johnson knows full well that
MANY foreign loan may be sound at
the time of fiotation, but approval bv
board such as he suggests would in the
event of default, lead holders to Law
responsibility at the doors of the State
and Commerce Departments and the
Federal Reserve Board.
The Senator certainly does not desire
such a solution.
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