The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1904-03-02
Spirit of the Press.
THE A. & N. C. DIVIDEND BUG-ABoo.
New Bern Journal.

THE A. & N. C. DIVIDEND BUG-ABOo.
New Bern Journal.
Several esteemed contemporaries, who
are honest enough to confess they do not
understand the situation. yet are full OF
advice as to what could be done with
the Atlantic and North Carolina Railroad
property are writing laborlously on the
fact that this railroad is not paying any
dividends, hence it must be IN a stage of
comatose, and that the present hold up
policy in the shape of recelvershlp IS
just the thing to arouse this property
into state of activity, and place 1t upon
a dividend paying basis.
1t needs no confession OF ignorance,
when such statements as these are made.
Such statements, however, reach people
who may see no other explanations. so
they are deceived and join the cry and
Iendorse the Receivership outrage, with
out thought of what such precedent, if
1T can be established, means in the future
As for being 'stagnant, dormlnt or
dry rotted," the Atlantic and North Caro-
lima railroad is today as active and pro-
gressive a railroad property as can be
found in the State, and proporttonately
will show a business increase equal to the
best
The attack made upon President James
A. Bryan, which reflects equally upon
Governor Aycock and the stockholders OF
the road, that he has not paid dividend
upon the stock during his administration,
appears to be an argument for endorsing
the receivership act forced thrSuga
single stakeholder and he a nonresident
President Bryan does not and never
has posed as a skilled and experien 2H1
railroad man. But no one could nave
given more time and conscientious per
sonal effort to the administration of the
affairs of the Atlantic and North Carolina
property than Mr.. Bryan has done dur
ing the past five years, ard this work
is to be seen in the railroad property and
in the development of this section. where
the road passes.
The actual value of a stock is not de-
termined altogether by its dividends.
Five years ago the stock of the Atlantic
and North Carolina Railroad was twenty
dollars per share. At q recent public sale
it sold at thirty-five dollars per share.
Here is an increase in the value of stock
equal to seventy-five per cent. 1t Is equal
to a three per cent dividend upon the
stock of this company for each of the five
years Here is the question which each
bona fde stockholder of record can an
swer. is it better to have had this en-
HANGED value in stock. or the dividends?
Is a three per cent dividend, with stock
at twenty dollars per share. better than
no dividends. with stock at thirty-fve
dollars per share?
And this added stock valuation is not
alone confined to enhancing in value
every stockholders holdings of stock,
there is the better physical condition of
road, increased business over it. and the
increased property valuation of the coun-
try through which the road passes and
does business.
Of course the Atlantic and North Caro-
lima must be considered practically, but
a forced receivership act, in order that
a clique may get its control, regardless
of every interest of those who own stock
or are vitality concerned. is not prac-
teal or reasonable solution. and no bust
ness man is going to so regard it.