The Birmingham age-herald., 1907-12-12
WESTERN UNION
 PAYS DIVIDEND Conditions Cause Payment In Stock Instead of Cash REPORT OF THE PRESIDENT Statement Made By President clowry Shows That Expense of the Strike
 and Financial Stringency
 Cut Down Receipts.
REPORT OF THE PRESIDENT

| New York, December 1.-The direc-
 tors of the Western Union Telegraph
 company today declared a quarterly
 dividend of 1A per cent, payable in
 stock of the company. The company has s2,630,000 of unissued stock and
 the dividend will be paid by issuance of this stock to the amount required. The board adopted tho following res-
 olution:
 Resolved, That the appreciation of
 the board is due to Col. R. C. Clowry
 and the exe,' Hive officers of the com
 pany for tact. discretion and prudence
 with which they treated the situation arising from the strike of operators" The net revenues for inc quarter to
 end December 31 are estimated at s1,-
 000,000. This Is $650.07S less than is required to pay the interest on the
 bonded debt and the usual dividend s311, 493 for the quarter ending Sertem-
 Ter 30, 1907, also Is noted After pay
 ing interest on the bonded dso; and the issuance of the new stock dividend thc surplus balance of the compeny is placed at $14,27S.112. This is q decrease
 of S2,611,6 ,669 as compared with the surplus of July 1 last
 On the subject of the strike of the operators, the report of President Glow
 " says:
 "In consequence of the confusion | arising from the telegraph operator strike, which began early in August
 last end ended November [. reports and remittances from the offices through out the country have been greatly de- layed and accounts have not yet been l fully made up.
 "The strike extended to all parts of 1 the country, the aim of the strill lers being to force the company to recog-
 nize the deal with the Photographers
 union, mainly a closed shop, and thus
 practically transfer the mana cement of the business to the officers of that 1 organization.
 For some time previous to the strike
 many of the operators in the employment
 delayed the transmission of traffic. hand 1 ling p to 40 per cent less business than that now handled by the employees of
 the same ability on similar circuits A sufficient number of loyal operators re-
 mained in the service to move the de- creased traric and stood faithfully at
 their posts.
 ''rhe ranks of the loyal operators were 1 gradually supplemented by additions to l the force; the strike was completely and l thoroughly defeated and such strikers as 1 were restored to the service were accept i ed on individual application and with the 1 distinct understanding that in the future they must be single in their allegiance
 to their employers.
 Sufficient returns have been received from the officers of the state of the reve- nues of the company, which were greatly decreased durnig the strike and owing 10 the depression of business which set III at the time strike was closed, the de- crease mas continued up to the present The expenses of the company were large- l ly increased by the 10 per cent advance l of pay of all operators from March l, 19O7 1 This increase was voluntarily granted to l the operators without the knowledge of 1 the union
 Tn addition to the loss of revenue l caused by the falling off in business and 1 to the increase in expenses caused by the l 10 per cent increase in salaries a very l large expense was necessitated by the l extra pay of bonus allowed the loyal | operators and linemen during the strike l and by the cost of board and lodging l which was furnished free to employees Although it is believed as indicated | that business will soon resume and earn ing become normal, nevertheless, in view of the impression, it seems the part of conservatism not to pay cash, but to make dividend of 4 per cent payable in stock.