New-York tribune., 1907-10-16
DETROIT UNITED DROPS
Panic an Montreal Market after
Passing of DiUidend.

The stock OF the Detroit United Railway Com
amy opened yesterday at 35, u points lower than
,rondavs closing, the that the II per cent
-uarterly dividend had been passed. After selling
!. % II rallied. and closed at &c. n loss points
= cafes of go shares The semi-annual dividend
~ { per cent on the stock OF the Toledo Railways
ra Light Company also passed, but the stock
us EttIe affected closing az 119, loss Of y point
petroit United has been a per cent basis
s,nce 1905. II first paid dividend of ! per cent
-arterlv in 1901. Toledo Railway and Light has
toen paying per cent annually since 1905.
Roth stocks held largely in Montreal and the
assnE Of the dividends caused a bad furry
:, the Montreal market. Neither stock is largely
held or traded in here.
n explanation of the passing Of the dividend J
r Hutchins president of the Detroit United COM
nany issued the following notice 10 the stockhold-
ers:
The territory which the Detroit United Railway
ss~Ves has been developing at a very rapid rate
secessitating large expenditures for equipment i'm
srovements and additions to the property. The
i5e company is unable to reimburse itself through
tbe Of its bonds. at what it deems reasonable
rount Notwithstanding the fact that the surplus
earnings OF me comnany are approximately equal
70 Of the previous fiscal year. it is deemed by
the board OF directors to be for the best interest
srnnes in providing for the improvenentsp ptttS ~
which reference has been made above. The direc-
the regular quarterly dividend AT this time.
President Everett Of the Toledo Railways and
Light Company In a circular to stockholders said
that the last six months had been unusually pros
ueroCs and the semi-annual dividend more than
earned but that owing TO the growth in its cleo
trie light business the company had been compelled
10 Increase largely its power facilities.
Montreal, oct. 15-The stock market was in
blue panic this morning the result of the pass
ing Of the quarterly dividend of the Detroit United
Railway This stock IS very largely held here
From % at The close Of the market yesterday to 20
at the opening to-day the first drop and later
IN II dropped 20 2Sa.
Toledo dropped TO 10, and the whole market was
badly affected. A good sized fraction Of the total
common stock is held here it having been bought
after il had been doomed Il safe dividend Garner.
Widows and orphans in plenty are depending on
The dividends OF this stock fer part of their sus-
tenance
There the greatest excitement all morning
on the Stock Exchange. Dominion Iron went off
70 Ifs. Montreal Power To S4a4. Street Railway
70 10 Nova Scotia Steel 10 59e, Rio 354, Mexi-
can 10 20, Twin City 10 SIS. Toronto to 94Ik and
Dominion Coal to a.
For a short time after the Stock Exchange opened
brokers offered stocks at almost any price they
would bring. Detroit was. OF course the big feat
ure OF the trading.
Detroit, Oct. l5-Comparatively little Detroit
United Railway stock is held in this city. so that
the passing Of the dividend had little effect locally
The principal markets for Detroit United Railway
Montreal Toronto. New York and Cleveland
There IS bitter campaign being waged here
against the company to bring about the granting
Of three-cent fares and universal transfers 1t is
thought that this may have had some effect on the
disposal Of securities.