New York, Feb. 27.
modities moved irregularly and Business declined this week, Comstocks and bends gained' on-the hope for more peaceful relations in Europe and hope for early favourable action by the LC.C. on the requested freight rate increase, Better trading volume on rising share prices helped the recovery. Market men said that some investment trusts were doing a bit of buying. Investors seemed to be accumulating leading issues. Bullishness, however, was tempered by declines in major industries, poor earnings reports and bad dividend news, the worst being the omission of a Chrysler dividend.
Wall Street looked forward with trepidation to the first quarter earnings statements due in April. Weekly industrial reports made poor reading. There was no sign of recovery although some agencies expressed hope.
The Barton index of business activity registered its fifth consecutive weekly decline and as of February 19 stood at 596 per cent. of the calculated normal. A year ago it was at 873 per cent.
Reports from major lines included:
Automobile—Wards estimated output for the current week at 56,677 units, as against 59,100 last week and 115,360 a year ago, but anticipated a seasonal advance. Chrysler omitted a dividend and reported $11.66 a share earned in 1937 as against $14.25 in 1936. In those two years, 85 per cent. of the net income was paid in dividends, In view of the corporate profits tax, directors saw fit to hold up dividends until they could measure the future more accurately. General Motors slashed salaries. Losses are anticipated for the leading companies in the first quarter.
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