New-York tribune., 1908-08-30
EQUIPMENT COS. TO ACT
DIRECTORS MEET SOON.
Falling off in Earnings May Neces-
state Passing Dividends.

81. directors Of three Of the large railroad equip
-,ont companies VIII meet early in September to
,.te action the common and preferred dividends
o., the current quarter The companies in question
.r. the American Locomotive Company. the Amer
,can Car and Foundry Company and the Railway
Steel Spring Company In view OF the fact that
,he business OF all the railway equipment companies
&c 80 small amount to practically nothing at
the present time. and earnings scarcely suf-
8c,enf to pay the preferred dividends. the coming
meetings OF unusual interest to the holders Of
the securities OF these companies.
What action the directors of the American Loco
motive Company Will take the common stock
dividend is probably the most mooted question
This stock is at present on a per cent basis.
Several members Of the board Of directors. Il is
understood did not approve OF the payment of
the dividend last quarter. and one director, who
Was q large stockholder. is said to have been so
eispleased that he sold out his holdings. In the
present quarter the company has only not
earned its common stock dividend. but has not
fully earned the per cent preferred dividend.
For the last three months the company's opera
tons have been on sucn reduced scale and orders
have been taken at such low figures that there
has been little profit after the cost of operation
paid. The company Is getting practically no
new work at the present time, and even inquiries
much reduced in number and volume of busi-
involved
1t must be remembered however that the earn
ings OF the American Locomotive Company 70. the
last two fiscal years the greatest In the COM
panys history It's surplus is large and its general
financial position exceedingly strong. 1t may be-
therefore, that the belief OF the directors quick
return TO normal business after election
strong enough to influence the payment o. the COM
mon dividend at the present rate The opinion In
certain circles close TO The management the
rate will not be changed Other well informed per-
Sons. however. look for reduction. while some
predict that the common dividend will be passed al
together The fact that the common stock is SELL
ing around 81 scarcely seems to point to the passing
OF the dividend The regular dividend on the pre-
ferred stock viii, OF course, be declared.
In the case OF the American Car and Foundry
Company there Is doubt that the quarterly divi-
dend OF one-half OF per cent will be declared on
the common stock. Provision was made out Of the
earnings OF the last fiscal year for four payments
on the common stock at this rate. which calls for
a disbursement OF some 100000. The company is
ton in spite OF the present poor outlook for bus-
ness. The regular per cent dividend on the pre-
ferred stock is q matter OF course
Although the position OF the Railway Steel Spring
Company IL greatly unlike that Of the American
Locomotive Company. the former company is, ap-
parently. recovering little faster than the ioco-
motive company from the business depression This
is due largely to the fact that the Railway Steel
Spring Company does q large repair business Ihe
locomotive company on the other hand. mas re-
oeived very few orders for repairs, the railroads
themselves evidently being in a position 10 take
care OF most OF the repairs to their own locomo-
t,ves As matters stand the Railway Steel Spring
Company is operating at not far from SO per cent
Of its normal capacity and its finances are In
good shape and present prospects fairly GOOD there
IS an even chance that the regular semi annual
dividend OF per cent on the common STOCK VIII DC
declared