The Washington times., 1934-01-01
Dividend Increases
Held Amazing NRA
Development
Every Unit in Several
Lines Reports Gain
in Earnings
BY JONATHAN WICKWIRE
Times Financial Editor

amazing development OF the RooSe-
welt recovery program not in re-
employment figures, agricultural
and industrial commodity price
advances, widely exploited in the
public prints, but in the notable
increases in earnings and dividend
payments reported by corporations
in the third and final quarters Of
the past year.
Buried in Obscure Reports
Probably this recovery phase has
impressed itself the more upon
this writer because of it's very OBJ
scurity, the facts relating to it be-
ing obtainable only by digging
through Gry-as-dust reports and
compilations generally inaccessible
to the hurried lay reader, even If
he were disposed to conduct the
necessary research.
Tn fact that entire industries
each comprising scores of individ-
ual units, have reported, without
exception, earnings increases run
ming into uncounted millions, while
in other Industries the percentage
Of companies reporting improve
ment has fallen only a little under
100 per cent. This fact has not
escaped the observation of other
discerning writer's nor entirely
failed of popular presentation.
Revelation by Gould
Thus, Leslie Gould, financial
editor of the New York Evening
Journal, in a recent Illuminating
and detailed article, summarizes
his findings as follows:
"While the ratio of corpora
tiOns to show improved earn
ings in the third quarter Of this
year, as compared with the cor.
responding period in 1882, is bet.
ter than 319 to l, six major
lines of industry have so far
turned in a perfect score. All Of
the companies so far to report
had greater profits than a year
ago.
"These industries are: Auto
mobiles, motor car accessories,
chemicals, electric equipment,
leather and food. They are the
banner lines, but running them
a close second are building ma
terials and supplies, metals, in.
Guiding mining, motion pictures,
oils. railroad equipment, coal
and STEEL"
But earning increases are not
enough. These must be trans.
lated into net income before they
satisfy the management and,
even more important, the bankers,
Converted Into Dividends
More, they must be transmitted
into dividends before the real
owners. the vast multitude OF
stockholders, reap any readily ap.
preciable benefit-any money in
come that they can spend for
needs or luxurieS-money which,
so spent, will help further to
speed the whirling wheels of com.
merce, make more jobs and, by
increasing demand, help raise
prices for farm and other prod
ucts.
Increased earnings may simply
mean that a company has cut
down a deficit; that income has
improved sufficiently to cover
bond interest, or a part Of it, or,
maybe, that earnings have risen
enough so that a small balance is
left, after charges, to carry the
surplus account. All very excel.
lent, no doubt, and of exceeding
great interest to the management
and to bondholders, principally in
Surance companies and banks.
Highly important to everybody,
of course, indirectly, for every
body is interested, vaguely, per-
hapS, but none-the-less surely, in
the solidity and strength Of these
institutions, and the welfare Of
millions is closely dependent on
their profitable maintainence.
Cash Money What Counts
But cash money dividends, con-
vertible at will into any of their
innumerable requirements are
what the stockholders want. And
they are getting them-regular,
special, extra, increased, accumu-
lated-in floods.
A fair cross section Of what
is happening was presented in
an International News Service
dispatch printed in these columns
on December 9, the gist of which
is contained in the following
excerpt:
stockholders in SO American
corporations will receive an in
crease of S55.691,54O in the
income from their investments
through larger dividend dec
laratiOnS by these concerns
since November l, a survey re-
vealed today.
"FOrty-twO companies have re-
Sumed or initiated dividends