Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-02-08
B.&O. DIVIDEND ATLAST
SIX PER CENT DECLARED ON
WASHINGTON BRANCH STOCK.

AT the meeting Of the Baltimore and Ohio
directors in New York yesterday the regu.
lar semi-annual dividends of per cent or
the preferred stock and 21s per cent on the
common stock were declared. These divi-
dends are payable March 1.
A more important action taken at the
meeting. and one which came as q sur-
prise to bankers ard state officials as well
was the declaration of a dividend of @ per
cent on the stock of the Washington branch
road
This was declared out of the earnings to
September 30, 1905 1t is also payable
March l.
First Dividend in Ten Years.
This is the first dividend the stockholders
of this branch of the Baltimore and Ohio
have received since November /, 1896, or fer
nearly ten years. Up to that time the
semi-annual dividend payments were per
cent, and for fully twenty five years pre-
Viously the road had regularly paid divi-
oends on the stock of this branch at this
rate, or at 10 per cent year.
Inc increase to q per cent at this time
Is not understood. The explanation given
Is that the profits of the property held by
the baltimore and Ohio treasury officials
Jusufy such distribution and that as
the stockholders had been kept out OF any
return for nearly ten years they were en-
titled now to all that could be reasonably
distributed.
Great surprise was created in financial
circles by the announcement of the dividend
on the Washington branch.
Legislators Are Gratified.
The news reached Annapolis at night, and
caused much qualification to members OF
the legislature, who say the declaration OF
the dividend was the result of the agita-
ton at the state capital.
Ihere are several peculiar things in con-
nection with the action of the Baltimore
and Ohio directors that are not explained.
One OF these Is the fact that no statement
was made as to whether the dividend is for
SIN months or a year. Another is that 1T
and Ito be paid March l. 1906. which is
practically five months behind the time
earned.
Gov. Warield's Views.
GOV. Warfield is on record as favoring
sale of the states stock If a satisfactory
price can be obtained. If the present ac-
ton Of the Baltimore and Ohio directors
means the stock is to be II per cent diyi-
dend payer, then Its value would CORE
spondingly increase. Few solid investments
give Il u per cent return in cash annually
Ihose which yield this sum and which
nave intrinsic merit behind them sell on
8 or ot2 per cent basis. Therefore taking
a 3 per cent money rate as satfsfactor to
any one who might wish to buy this stock
as an investment, the shares will be worth
at least 500 each The ratio of this value
Will descend as the desired interest return
increases.
What the Washington branch is was fully
explained In the comprehensive paper pre-
pared by Maj. j. G. Pangborn about a year
ago. 1t Is practically the throat of the
Baltimore and Ohio road in Its passenger
traffic east and west, The line begins at
Relay and extends to and Inc ,udes the pres
ent terminal facilities of the Baltimore and
Ohio in Washington. Its length is little
more than thirty miles, but SO useful has
it been to the trunk line system that the
Baltimore and Ohio officials for years have
devoted much engineering skill and spent
much money in its development so that it
is now regarded as one of the finest road
beds for railroad traffic in this country