Dividend Cuts

Two of the biggest U.S. corporations cut their first quarter common stock dividends last week. Chrysler declared $1 against $1.50 last year; Du Pont will pay $1.25 against $1.75. A month ago General Motors declared 50¢, against $1.

Many smaller companies did the same: Bigelow-Sanford from $1 to 50¢, Columbia Broadcasting from 45 to 30¢, West Virginia Pulp from 50 to 25¢, Lake Shore Mines (gold) from 50 to 20¢, Toolmaker L. S. Starrett from $1 to 50¢.

These reductions did not, in all cases, reflect lower profits. Chief explanations: 1) higher taxes; 2) cash must be saved for...

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