The evening times. [volume] (Washington, D.C.) 1895-1902, 1900-08-25
TRUST Dividend PASSED
Cast Iron Pipe and Foundry Con-.
pany's Affairs.
Defaults in Regular Payments on Its
Preferred Stock - Concern That
Succeeded the Addyston Pipe CoGi-
pnny a Year and IL Half Ago.
Capital stock May Be Reduced.

The great United States Cast Iron Pipe
and Foundry Company yesterday failed to
declare the regular dividend on its pre-
ferred stick. thus giving the opponents
of the immense recently organized trust
combinati2na another most striking &rgu-
ment. The logical inference from The pas
sage Of the dividend by the company is
that the concern was heavily over-eapital-
lied or watered. and that in order to pay
q dividend it was necessary to charge
exorbitant prices for the products of the
concerns. With the decline in business
and prices during the last few months the
concern is compelled to stop dividends with
in year and half Of it's formation and be-
fore an entire years payments have been
made. This failure of the company 10
continue the disbursements to its preferred
stockholders viii attract attention all over
the country, and even throughout the in
ancfal world.
This company is the trust that succeeded
the Addyston Pipe Company which had its
famous suit in the Supreme Court few
months ago, id which 1t was decided that
it was a trust under the meaning OF the
law and therefore Illegal. Ine present
company had absorbed the AddystCG con-
Germ, however, when the decision was ZEN
dered, and under a slightly different ar
raHgement, and its legality has aot yet
been questioned
The United States Cast Iron Pipe and
Foundry Company. which absorbed con-
Germs with east iron pipe works in Ohio,
New Jersey, Pennsylvania Kentucky, Ten
nessee, Alabama, and New York. was in
cofporated in New Jersey IN March of last
year II has issued $12,500.0 Geo Of I per cent
Don-cumulative preferred stock and q like
amount of common stock, SO Ge0,CCo OF
each class being Authorized. Dividends
have never been paid on the common stock.
but on Deee mbsr / 1888, the company be-
gan regular payments on the preferred by
declaring = dividend of l ga per cent.
When the next periods came around, in
March and June of this year, the same
dividend was declared in each instance, so
that the 81, SOC. 600 Of the preferred stock
mas thus far received Ia per cent, or
S656, 25G in dividends.
General Thomas. the president of the
company, said yesterday that the reason
for the present passing of the dividend
was q desire to keep the earnings intact
for working capital. The preferred stock
| has been selling recently for not much
above $50 share. 1t was weak yesterday,
on the announcement OF the passing of the
dividend, which came out just before 3
o'clock.
When formed the corporation was in
tended to include the concerns controlling
the larger part Of the east iron pipe pro-
duction. The companies absorbed incIud-
ed these. among others: The American
Pipe and Foundry Company, with works
at Chattanooga. Tenn; South Pittsburg,
/ Tenn; BesSemeE. Ala; Admission, Ala.
and Bridgeport, Ala; the National Foun-
dry and Pipe Works. Limited, of Scott
sIafn De - 7 Tv--
land Ohio: the Ohio Pipe Company of
Columbus, Ohio. and the AGdyston Pipe
and Steel Company. with works at Addys-
ton, Ohio. and Newport, KY. The con-
Germs taken in had a capacity Of 450, 900
tons year cut Of total estimated year
I ly production of eco. 0G0 tons of iron pipe
in the United States.
! The company began business with q
working capital of s.. eco 900 Henry ".
| Poor & Co. just before its incorporation
| offered 81 500 600 OF the preferred stock
! for subscription at par. with an equal
/ amount OF common stock as a bonus The
/ net earnings of the company for the first
| four months OF its existence were said &c
/ be more than $3.50 goo which is on the
| basis Of about s9S4.G00 a year. sum sufh-
/ cient to pay the dividends on the pre-
/ ferred stock if such an earning rate could
! be kept up. and pile Up 2 yearly surplus
of nearly S60.000
The directors of the company are Gen
| Samuel Thomas A y. Brady and Colgate
/ Hcyt. of New York: \ F Callahan and
! John R. Wall. of Chicago; A c. Overholt
| and B. F. OvehoIt, of ScottdaIe Pa; A
I H. McNeal. Burlington, N J.; George B
1 Hayes. Buffalo. \. Y: c. E Burke, CIeve-
| land Ohio; E. c. Fuller. Columbus, Ohio;
A Howard HinkIe Cincinnati. Ohio. ana
! George J. Long Louisville, KY
It is currently reported that the direc-
! tors may reduce the capital stock mate
rally as the way TO better conditions.