New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-06-09

Z
on over 81 1000 100000 of stock, and the ag
gregate paid does not average more than 2 g
then paid more than 50, 104, 800 W, i."Ju
to pay the latest sem' '''n"''' vi f'''0'
dividend due
WINE these tables are almost as complete
rs the tables of Poor's Manual, which are
usually accepted as the most complete record
attanabe as to railway earnings, it should be
remembered that the Manual itself is neither
entirely complete nor absolutely accurate.
Especially with regard to roads operated under
lease, the information obtained is often very
scanty, and not in all cases reliable 1t IS not
improbable that some errors and omissions
have thus occurred in our comparisons. New
ertheess they are so nearly complete as to
afford far indication of the condition of the
railway interest.
The dividends which have been paid within
the last half year are at the rate of per
cent annually upon stock amounting to $780,
Gil 1902 The same stock returned 1868, $780,
81 g. or nearly 7.S per cent, in 1876. Mean
per cent upon all stock outstanding. 1t can
not be said. however, that these results are
altogether disheartenmg. A very large pro-
portion of the roads in the country have been
built wholly or mainly with the proceeds of
bonds so that the outstanding stock of such
roads represents no actual investment, or but
comparatively small Investment, of capital. In
many other companies u stock has been enor-
mously swelled by watering, so that it now
represents not only part of the original cost
but also profits of years of successful business
or gigantic speculative operations. The dlyl-
dend paying roads are also paying interest on
about $500 900, 900 of debt, and if, after paying
at least 1000 600 for the use of capital really
expended in building, they can also earn
S58, 900, 900 for stock, OF which large pro-
portion does not represent an actual outlay,
they have reason to think themselves fortu-
nate The last year has been one OF general
and great pr0stration in business. 10 the
railways especially, because of the war i'll
rates and the collapse of the coal combination,
it has been the most trying for many years.
That the companies named continue to pay
dividends at all under such circumstances is
result upon which they may well congratulate
themselves, if the money has been earned.
The weak point in the comparison is that
some of the companies which have been pay
ing the largest dividends have been enabled to
do so only by sale of bonds or other securi-
llcS, ny HcSIccl VI plOpcI lcptho, vi ny oOhOi
and even less credtable devices. A year or
two ago, when New-Jerscy Central was pay
ing dividends, it was setting an example which
many important roads have since followed.
The dividends show what the roads pretend to
have earned, but not in every case what
they really have earned. In some cases
the corporations have the same excuse
a desire to help stockholders who depend
largely upon dividends for their means
of livelihOod-.whch led the banks of this city
to pay dividends. though, as high authority
has publicly stated, fully two-thirds of them
had not earned dividends. But in more inn
pOrtant cases the railroads have been more
anxious as to the standing of the stock in
Wall-st and its suilcicncy as collateral for
loans, and the fate OF speculatiOns based there
on, than as to the welfare of stockholders. 1t
is probably safe to say that the increase of
debts and the neglect of roads will compel
many of the companies to make considerable
reductions in their dividends hereafter.