The times. [volume] (Richmond, Va.) 1890-1903, 1900-10-06
AN ERA OF DIVIDENDS.

AN ERA OF DIVIDENDS.
October 1st was the day of quarterly
disbursements on bonds and stocks OF sub
lie market prominence, and according to
the New York Daily Stakeholder, the
amount dsbursed aggregated SIS, Ooo, COO
The disbursements in July exceeded those
of January by 100000. and the October
aggregate is s6.oooOOO ahead of the April
disbursements, and s12,ooo,Ooo ahead of the
disbursements a year ago ~
1t is further pointed out by the Boston
Transcript that in October. 1896, the total.
of dividend payments on railroad and
miscellaneous shares Of public prominence
was SI5,00oe0o. while in the same month
this year dividends aggregated $50, Ooo, ooo-
exactly double. The same paper says that
two years ago two-thirds OF the railway
mileage of the country was in receivers
hands, while now very few properties are
in such conditions, and millions of dollars
worth Of shares which were then repre-
scented by foreclosures AMI bankrupt prop
critics are now paying dividends.
Notable instances are right here at
home. 1t is only a few years ago that the
Norfolk and Western and the Southern
Railway were in an insolvent condition.
but now they are dividend payers. Their
bonds are selling at the top of the market.
Norfolk and Western is paying full 4 per
cent. on its preferred stock, and last year
earned more than 5 per cent. on its
mon stock. The Southern Railway has
been paying 3 per cent. on lis preferred
stock. and last year earned enough 10
pay nearly the full 3 per cent, although
expendng a large sum Of money for the
physical Improvement of the road. The
Chesapeake and Ohio Road is also now in
the dividend paying class. and as for The
Fredericksburg Road and the Atlantic
Coast Line. they are making the finest ex-
hibits Of their history.
Another interesting comparison pointed
out by the Boston Transcript is the in
crease in the amount of capital invested in
railway and other corpora tons which are
paying interest and dividends. It says
that in October, 1896, stocks of par
value Of SIP ,oo0G0o paid dividends in Oc-
tober. 1900 the par value Of dividend pay
ing shares is $1.622, GGo, COO. an increase Of
$3.50 0O0. 900. (Which MEANS, adds our
contemporary, that that much more of
invested capital in shares Of railroads and
miscellaneous companies is returning
something to holders than four years ago,
,1Fl MOI Is tl,pr tod
out that in the same year the par value
! of bonds paying interest was swelled by
! $3.50, 900, 900, making a grand total of two
billions of capital paying interest and divi-
| dends this months. or d billion and quar-
| ter more than in 1886. During the first
ten months of this year the total OF in
| terest and dividend disbursements is 1922
100000, against s34i,ovco0o four years ago.
Some people have said, in referring to
| exhibits of this character that they dem
onstrate that this is only a rich mans
prosperity. Nonsense. For one thing,
stocks and bonds are held in these days
largely by people in moderate circum-
stances. But whether this were true or
not. the fact that such large sums of
money are being earned by the railroads
and corporations Of the country is concu-
sive that immense sums are also necessa-
rily paid out EOS. labor, the purchase of
supplies and so on, thus turning money into
the channels of trade and making general
prosperity The amounts paid by the rail-
roads on The interest and dividend accounts
are small as compared with the amounts
disbursed for operating expenses.
Another interesting fact is demonstrated
by these increased dividends. 1t has been
said that men of large means prosper most
when times are dull and money is scarce,
for then they may loan their money al
high rates OF interest, and enrich them
selves by impoverishing others. Nonsense
again. Mes. of means prosper when the
country generally is prosperous, and no
better evidence Of this could be furnished
Sthan the comparison which has been made
above between the interest and dividend
disbursements of 1896 and 1900.
---------z-- ii=!.5=
5000, ,-wr.ry,e,yr.