The Omaha guide., 1935-02-16

Ask any recognized business observ-
or when the depression viii be over.
He won't be able to give you the ex-
act date-but there is a good chance
that he VII say. "When Big Steel
UNITED States Steel Company re-
sumes its preferred dividend"
Big Steel has been the bell-wether
Of industry every since its creation in
1901. When Us operations are down.
all other major businesses are down;
when its operations are up. all other
major businesses are usually doing
well. In every business activity in
dex. steel operations are gwen more
weight than any other indicator.
Steel's regular preferred dividend is
81. 1t paid it regularly year after
year. with few executions, until de-
preston stepped in. First decline vas
a cut to 81. Then the dividend was
dropped entirely, and is now $50, 000,-
600 in arrears.
Big Steel hasn't resumed its divi-
dend vet. but demand for steel from
all sources is growing, with the auto
mobile industry in the lead. Produc-
ton, according to General Dawes,
keen steel student, is at about 60 per
cent Of the industry's real caDaritv.
Black figures are taking the place Of
red. Big Steel recently returned to a
six-day week for it's white collar work
ers. thus restoring the ten per cent
paw cut they had taken. 1t i a policy
of steel to always restore pay to cor
mer levels before resuming dividends.
That il the best business news Of
a the week-but other good news is not
lacking. AS the 1884 earnings re-
ports drift in, it is evident that a
large number Of important concerns
are finding the going easier, profits
greater. Improvement was registered
in the earnings Of such potent corpor-
atoms as American Telephone and
Telegraph Chesapeake and Ohio Rail
road, J. G. Penny (whose 1894 sales
established an all-time high for the
chain), and Montgomery Ward. Coal
and textiles, two basic heavy indus
tries which were hit especially hard
by depression, seem to be on the
mend.
The National business map looks
very different today than it did even
two or three months ago. The NUM-
Der Of states where business is not
good as a year ago has dwindled-
only Texas, Alabama, Utah, New
York, Vermont and New Jersey fall
into this classification. California.
Oklahoma, Maryland, Connecticut and
New Hampshire show little or no
change. All the rest of the states are
in a better position.
So much for the credit side Of the
ledger. On the debt side is the IN
challenged fact that unemployment
is approximately as great as it was
a year ago-according to some. it is
greater-while 20-odd million people
still depend on relief for subsistence.
1t is likely, however, that q dent will
be made in these figures as the gain
in heavy industries is reflected in the
employment statistics.
Also on the debit side is uncertainty
as to the trend OF national legislation
businesses and investors fear laws
that would take potential profit out OF
private e~ndeavors. Proof of this atti-
tude is found in the recent heavy rise
in the prices Of good municipal bonds
people r anxious to put savings
into tax-free government securities
rather than private securities whose
worth may be deprecated BY govern
mental action. 1t is a safe bet that
many hearts will beat easier next
summer when Congress adjourns-
that act alone viii give q spur to re-
covery.