The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1877-08-09
q.
NO DIVIDEND.
The Pennsylvania Road Passes Its Quar-
terly Dividend In order to Repair
Damages Mt Pittsburg.

The Pennsylvania Road Passes Its Quar-
terIy Dividend In order to Repair
Damages Mt Pittsi,urg.
lPhiladel pha Times, August 2.
The Pennsylvania Railroad Company
yesterday, for the first time In more
than score OF years, failed to declare
its regular dividend. The Board OF
Directors met yesterday, at the general
office in Fourth street, and had long
discussion, the result of which only
was given to the public; that result
was given by the Secretary, Mr.. Lesley.
y In a paper prepared by the direction Of
the board, reading as follows
In Wow OF the heavy losses recently sustained
by the Pennsylvania Railroad Company in the
destruction OF lie property IN the city OF Pitts
burg by mob violence; and OF further losses sus-
tanned in revenue through prolonged interrupt
ton OF traffic, from the same cause, at various
points on it's own and connecting lines, and In
view also Of the imperative duty OF the company
to provide for the immediate restoration OF roll
ing stock and Of such buildings are absolutely
necessary f,r the transaction OF LTD business;
therefore,
declare dividend upon the capital stock OF this
company.
The belief that the company would
pass by it's August dividend had been
accepted by the mass Of Third street
brokers before the opening OF business
yesterday morning. The first sale be-
fore the board opened was made at 2bs.
Throughout the forenoon the brokers
were telegraphing correspondents IN
other cities that the company would
certainly refuse to declare the dividend.
1t was known that the board Of direc-
tors were In session, but no intimation
of their action came from them until
2 80 o'clock. It came to the brokers'
room. after boards, upon the stock tele-
graph, In these words: "The notice
sent by p. II. II. is as follows The board
have deemed itinexpedienta at this time to
declare dividend" The stock, which
rs and 26as, dropped instantly. The first
sale after the announcement was re-
ceived registered the stocks value at
25z. There was not much excitement.
There was nothing at all like panic.
The stock was offered just little more
rapidly than usual. and the price, bore
down steadily to 24a. Recovering In the
closing minutes OF the day, 1t went up
to 25s, at which figure transactions
closed There was chance to talk to
bankers and brokers after the days
work was over. The general expression
was that it was one of the melancholy
DAYS OF the street. Brokers are sup
posed to be a heartless set Of men, said
one, "but don t believe there are any
who do not feel gloomy over this
occurrence. OF course there will be
more business, for this action Of the
company Is bound to bring u flood Of
stock upon the market; but 1t Is rather
sud business to do, selling our great
est stock at half it's value to keep hold
ers from starving" 1.-TWO weeks ago"
another broker said, "the man would
have been thought crazy who predicted
the passing by OF the dividend; but 1t is
the wisest course for the company, and
it has been expected all the week. II
the Baltimore and Ohio Railroad Com
pany had not declared i've per cent
dividend, and then sought to take it's
amount from the wages OF its employees,
probably there would have been no
strike. This will teach thousands Of
persons of moderate means that they
are more affected by the strike
than they have thought. The failure
to receive their quarterly dividends will
probably reduce many families TO want,
but there Is no help for 1t, since the
strikers destroyed millions of the COM
pany's property. The company will be
stronger in the end. Probably they will
recover their damages in time from
Allegheny county, though the present
financial condition Of Pittsburg does
not give immediate encouragement"
A banker recalled the last time that the
company failed to pay cash on dividend
day. Tt was after the panic OF 1873. Its
10 per cent dividend was then paid In
scrip, which sold Immediately upon the
streets at ninety cents on the dollar.
Its price gradually advanced to par, and
within three months the entire issue
was redeemed in cash.
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