Evening star., 1936-08-02
HOLDERS CHEERED
BY RISING TIDE Of
DIVIDEND CHECKS
Returns of Trade Recovery
Indicated by Actions of
Major Companies.
NEW PROBLEMS RAISED
BY DROUGHT DAMAGE
Railroads, Banks and Merchants
to Feel Effect of Farm Losses.
Food Costs Advance.
BY CHARLES r. SPEARE.

NEW YORK, August 1.-The half
starved stockholder is beginning to
gather in the returns from a business
Of the first half of the year, corpo-
rations find themselves able to dis
tribute a larger proportion to their
shareholders. So we have had this
week higher dividend announcements
by number of prominent concerns.
That of the Chrysler Corp. was the
most notable for size. 1t reflected the
remarkable production record of this
maker Of automobiles and the rapid
change in its financial status since
1882. when its stock sold at SIS a share,
compared with about $l25 on Monday.
Then there was the advance in the
rate on Consolidated Edison common
from 81 to 81 a share This seemed
improbable a year ago. when public
utility companies were capitalizing
their rate troubles for political effect.
1t has been made possible by bond
refunding operations reducing fixed
charges by the equivalent Of q OF !
per cent per annum on the common.
U. S. Steel Doubles.
The third increase was that OF the
United States Steel Corp. on its pre-
ferred, from 50 to 81 a share, a policy
adopted on the basis of results for
the June quarter. These showed full
earnings for the preferred and rs cents
a share for the common.
There is sls25 remaining in accu-
mulated dividends to be paid on the
senior issue before owners of the junior
stock participate in profits.
In the first six months Of 1896. divi-
dends paid by American corporations
and institutions were 20 per cent larger
than in the same period Of 1895.
The group showing the greatest in
crease was composed of the motor
companies. whose payments rose about
200 per cent.
Further Gains Likely.
1t Is fair to assume that, in the Sec
on half Of this year, there will be more
evidence Of recovering profits in the
dividend record Of the iron and steel.
copper, oil. retail and mail order stores
and public utilities.
Even a few renewals and increases
in the railroad list are not unlikely.
The fact that July produced the
largest average advance in stocks of
any month in the last year indicates
that the market is following closely
in the wake Of industrial recovery.
This has been little affected by the
season or by the drought conditions.
Retail demand holds up remarkably
well against various adverse conditions.
The extent Of wholesale buying
points to the expectation of widespread
demand for merchandise in the Fail
and Winter months.
Election Awaited.
There is still the notion that the
election will have little effect on busi-
ness trends. This may be so. There
are. however, certain CONTINGENCIES
that might make for a temporary pe-
riod Of unsettlement.
For instance, a season Of defiation
would be more probable than one of
imitation II the fiscal policies of the
present administration were to be re-
vised Immediately In order to check
the rise in the national debt.
At the present time, it seems inpos-
sible materially to reduce relief costs.
since the Unemployment Of industrial
workers Is Offset by the increasing
number Of farm owners and farm
laborers for whom revision must be
made irrespective Of party.
Drought News Adverse.
For the drought news this week Is
again discouraging. both here and in
Canada. The effort to show that the
farmer Is better of in spite OF his
blighted crops Is futile.
The banks that finance him and the
merchants that carry him know the
contrary Is true.
The railroads that have smaller ton
mage Of grain and will be compelled
to move live stock at reduced rates
are certain that prosperity for them
does not follow drought.
And the consumer Ia beginning TO
feel the effects In his table bill of the
rise In staple prices.
tCopyrieht. 1880. by this NoFtb American
Newspaper Alliance Ipe.)