New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-12-16
c., R. [. & ?. CUTS DIVIDEND
To Pay Charges Heaped Upon 1t by
Holding Company.

The directors of the Chicago Rock Island and
Pacific Railway Company at a meeting yester-
| day reduced its dividend from 21a per cent, the
rate declared on October ., to Il per cent. The
| extra amount will be used TO pay bond charges
falling due early in 1905. Directors of the Rock
Island company who were present decided that
! in view of present conditions the January divi-
dend on the preferred stock of that company
| should be passed
The reduction of the dividend Of the operating
company has been predicted among railroad
men for the last few days. The railway COM
pany was earning enough to pay the former
large dividends they said, but the charges heaped
on it by the various obligations of the Rock
Island Railroad Company and the Rock Island
Company. the holding company were swapping
it. A change in the financial policy must be
instituted by conservatives in the board. they
declared, or the concern would fare badly.
The action taken yesterday unanimous, it
was said after the meeting No conflict had
resulted between the Moore interests and the
banking interests in the board William B.
Leeds was hardly a factor his holdings
being splall.
It is believed that at the next Frisco meet
ing the preferred dividends will also be passed.
The elimination of the preferred dividend In
January on the Rock Island Company stock will
leave available for expenditures the system
IT is explained, is not due to lack of money, but
to a determination to pay for improvements out
of the earnings a system not always in vogue
The following official statement was issued
after the meeting:
At a. meeting of the board of directors Of the
Chicago, Rock Island and Pacific Railway Com
pany held to-day, at which the members OF the
hoard Of the Rock Island company were also
present a dividend Of H. per cent was declared
on the stock of the Chicago, Rock Island ana
Pacific Railway Company payable January Z.
1906 The payment of this dividend out or the
net earnings of the railway company for the
five months of the fiscal year ending November
20 November estimatedl leaves in the treasury
Of the company surplus net earnings for that
period of $4,000.
The board authorized the expenditure during
the next year of S4.S00,O00 in additions and i'm
movements to the physical condition of the
Chicago, Rock Island and Pacific Railway prop
critics This is in addition TO expenditures for
similar additions and improvements heretofore
authorized and now under way, on which,
balance of So 100000 is yet to be expended
The board also authorized the purchase of
motive power and equipment to cost S4.Z62'ooO-
This is in addition to equipment and motive
power recently purchased and not yet delivered
costing So 525 600 These authorized expendi-
lures for additions improvements and equip |
rnent total S14,5SI, 600
In view of this programme for expenditures
1,nou the property. it was the unanimous opinion
of the directors present OF the ROCK Islsio COLI
many that the January dividend on the preferred
etock of that company should be passed Inc !
SoIIoIvine is a list of the equipment au- |
thorized: