Omaha daily bee., 1898-01-07
REDUCED EARNINGS OF cArIrAL.
so-cnIIcd "Ptutocrnts" Touchcd by
Hard Times.


The total OF January disbursements, rep
resenting payments Of interest and dividends
on securities OF public interest reaches the
largest aggregate in five years. aud with cne
exception only, the largest on record Ten
years ago the railway and other corporations
OF the country securities OF which are
traded in on stock exchanges or which other
wise have public market, disbursed total
OF S54 900 600 in January. representing semi
annual interest and quarterly dividends. rms
year the payments aggregate $40 OO,OOO. The
highest point was reached in 1898, just be-
fore the panic of that year, when the total
reached $50 900, 900, dropping thence TO $685.
600 900 in January 1895. under the influences
OF the general depression. There has been
a steady gain since, as the revival OF busine SIS,
practice of great economy by the railroads
and successful reorganization OF number
permitted better return to security-hoiders
on capital invested.
Tho effect of reduced dividends still Is ap-
parent however for the total dividend pay
ments this month are slightly less than In
January last year, although the amount OF
stock on which dividends are paid is some
S73 900, 900 greater. That is. more capital is
returning dividends, though percentage Of re
turn is diminished. This Is In harmony with
the times. the whole tendency of which is
towards smaller yield on securities. 1t is a
striking fact that the effects of panic, de-
preston and loss of confidence have worn
away so far as to bring this years semi-an-
nual payments up to within million OF the
highest recorded total, and when we look
further another gratifying comparison is
presented. In the year 1898, when total dis
bursements of January reached their highest
total. dividend payments aggregated $2OOOO- =
900; this month they are 1924, 900 000
1t is the bondholders who have suffered
after all While panic and depression ruled
stockholders had to see dividends reduced or
passed altogether, but they are first to share
in the benefits of revived prosperity. One oil
the most striking DEVELOPMENTS of the last
few years of unsettlemeat Inns been the de-
crease in interest rates on mortgage bonds,
the exceeding ease of money, permitting re-
funding of high rate bonds on a large scale at
radically lower rates. Thus we find S5,OOO,OOO
less paid in interest this month than In
January, 1893, while dividends are S4,OOO,OOO
greater Nearly 800, 900 900 more bonds pay
interest this month than In January last
year, but only $1,076,000 more interest is
paid; as to stocks, $73 900 more pay than
IN January, 1897 with a total Gaid S2l6,0OO
less. clearly showing the tendency toward
lower rates OF return, but participation OF
radically more capital in the disbursements
This is the principal showing Of the semi
annual Cayments; more capital Is sharing In
the profitable results of operation, with cor
responding reduction in percentage of return
on the investment The industry of manu-
featuring stocks and bonds, so tlourshng but
q few years since Is a lost art, happily; the
sDrit of the times is strong for the payment
TO investors of some return on existing capital
and the experiences of the last half dozen
years nave made capital content with ma
terially smaller return on Investments in
securities than ever before.