Evening star., 1932-01-27
Everybody's
Business
Ha1wns of Steel Dividend
Outstanding Event From,
Securities STANDPOINT.
BY DIR. MAX WINKLER.
Special Dispatch to The Star.
NIEuL YORK January u IN. A m.

terdav afternoon of the United States
Steel Corporation and the resultant
halving of the quarterly dividend on
common stock to so cents.
The earnings statement vas IN me
with expectations. Chairman OF the
Finance Committee Taylor points OUT
that profits for 1881 were equivalent
to only slightly more than one-haH OF
the preferred dividend requirements.
The declaration of the regular dividend
on the preferred was equally IN line
with expectations.
The nature of the action by the man
agement on the common stock has been
plIzzling Wall street for some time
Maintenance of the 81 annual rate
might have been possible only by re-
sorting to the corporations large sur
plus, a method employed more or less
since the last quarter OF 1929. Selling
to Weld almost 8 per cent, reduction in
the rate cannot be regarded as COM
plete surprise.
The reduction of the dividend to 81
NAV indicate possibly that the manage
ment is not quite certain with respect
to the future outlook. 1t may have de-
cided, therefore, to refrain from taking
recourse once more to the surplus which
has accumulated in the course Of years
for the distribution Of dividends to COM
mon stockholders.
1t is also possible that the lowering
If the dividend may have been prompted
by the belief that a 81 rate would tend
to exert an unfaVOrable effect upon the
discussions in Chicago in regard to rail-
way wages.
Intimation that the Interstate Com
merce Commission would favor the re-
turn of funds to the railroads which
made payments under the recapture
clause Of the railroad regulation law
should help the United States Steel
Corporation to the extent of about Y
cents a share.
Up to the middle Of last month three
railroad subsidiaries Of the corporation
| had paid a total Of S6,305 $685. which,
If returned, would add that much to
the income. Should interest be in
| cluded, the amount would be appre-
ciably larger.
The selling of securities and the call
ing of loans by banking and financial
institutions have a tendency to reduce
their own profits, in the opinion OF
Ogden L. Mills, UnderSecretary of the
| Treasury.
The calamitous process Of deposit and
credit contraction must be arrested, Mr..
Mills continues, adding that the flow OF
funds from all parts Of the country TO
the financial center should be reversed
and the full use Of available credit
encouraged.
A useful contribution to world econ
omy could be made by India.
Within the last 80 years the country
has absorbed the equivalent Of about
81 1925, 100000 Of gold, Of which approx
mately SI50,000,00O has been shipped
abroad since September q, when Great
Britain left the gold standard. Eng
lands withdrawal led Indian hOarders
of the yellow metal to dispose OF It,
either through shipment or melting.
In addition to doing something con-
structive India is making handsome
profit through the export Of gold. 1t
would not be surprising to learn that
Indian gold played an important part
in the repayment next Monday of Great
Britain's Sl5O,O00,000 credit to the
United States and France without de-
pleting the reserves Of the Bank OF
England.
Relative firmneSs in the shares Of
WoolWorth Is attributed to expected Ia
vorable earnings for 1881. Although
gross sales will in all probability show
is expected to approximate S365 a
share, an advance of about 2 per cent
as compared with 1880.
1t is doubtful whether any important
inventory adjustments will have to be
made on account of last years opera
tionS.
Sir Otto Niemeyer, director of the
Bank of England, continues as a f1nan-
ciaI doctor.
Not long ago financial experts were
freely furnished by the United States.
This happened at a time when America
made large loans to the rest Of the
world With the cessation Of foreign
loans, the demand for American f1nan-
cial specialists diminished.
Now Sir Otto has been asked to in
vestigate the position of the Bank OF
Greece and the country's economic and
financial condition His vast expert
ence renders the English financier emf
nently qualified for this work.
1t may be recalled that his eXamlna-
tiOn of BIazil's status was followed by
suspension Of payment by the country.
1t is hoped and expected that his pres
ent mission will be more fruitful.
Spain has come into possession of
some S30,000,000 which she expects to
use for charities and educational pur-
poses. The funds are derived from the
dissolution and subsequent Conf1scat1on
Of property of the Order of the JeSuitS,
which for more than 410 years has
f1ourished on the Iberian Peninsula.
Members of the order are forever
baniShed. History of about four and
half centuries ago repeats itself. Spain
has not, however, benefited in the long
run.
The next IL months should be a
period of recuperation for Germany in
which the Reichs Bank must be pro-
tected by creditors, because Germany
has paid already as much with gold as
The creditors can ask, in the opinion of
Albert H. Wiggin, whom circumstances
have made one Of Americas best posted
men on German affairs.
Mr. Wiggir-, or rather the report bear
ing his name, points out that further
repaymentS will be fixed according to
the development of the country'S ex-
port surplus, which in turn depends to
large extent upon the trade policies of
creditor nations.
In Peru everything proceeds in ac-
cordance with regulations.
When payments on foreign loans were
suspended special decree was pro-
mulgated to that end. Herein Peru
differs from Russia, which won't pay,
and, of course, doesn't pay. Peru says
she can't pay now. The result, re-
grettable though it may seem, is the