The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1913-12-11
NO DIVIDEND BY
THE new HAVEN

New York, Dec. 11.-After an I'M
broken record Of forty years as a div
idend payer, the New York. New
Haven & Hartford Railroad Co. has
finally been forced to the necessity of
suspending further disbursements ON
it's 1857, O00, 900 Of stock.
This decision was reached here yes
terday after a prolonged meeting of
the directors. The action of the board
While partly f~oreshadowed by the re-
cent acute weakness of the stock. will
as a shock to thousands of in
veStorS.
1t is estimated that not less thar
$40, 900, 900 Of New Haven stock and
bonds. as well as securities Of %afiliat-
ed companies are held by savings
banks and other financial institutions
as well as in estates.
The action Of the directors, most of
whom were present. was unanimous.
The formal statement Of Chairman
Howard Elliott, which gives the con-
illusions Of the board in detail, say:
THE New Haven is a strong COM
pany, owning valuable property, real
estate and securities worth many mil
lions of dollars. Some of this real es-
tate and the property represented by
the securities and the securities q n
in time, be marketed and thus
strengthen the cash resources Of the
company. 1t is very difficult to sell
property n securities at this time
and the directors believe it Is unwise
to attempt to do so until general con-
ditions are better.
During the calendar year 1918 the
road has already paid dividends of s
per cent amounting to $8,657, 361. so.
For the o months of the fiscal year
July l to Oct. 81, 1913. the income
available from all companies upon
which the New Haven can draw, is in
round numbers $4,000, 900; estimating
that the net income for November and
December will be $500, 900 makes q.
possible total income for six months
of $3,890,000. Deducting from this the
IN per cent dividend 81 1855, 1858 paid
Sept. 30, leaves $1,533,231, all of which
Is required for working capital.
n company is now entering upon
those months where the volume of
business Is apt, under normal condi-
lions. to be less than during he
months July to November Inclusive,
The arbitration of wage disputes in
the last eighteen months has resulte
in increases in pay that will increase
expenses for the present fiscal year
between $500, 900 and 81, 0O0. 900. The
improvements to which the
Is already committed in the interest
OF safety, efficiency, and greater con-
v~enience to the public, will take large
sums Of money.
The directors feel, therefore. that
he welfare of the company, of it's
stockholders and of the territory serv-
ed by the various lines will be con-
served better under all the conditions
now confronting the company by NOT
declaring at this time, a dividend"
Regarding resumption of dividends,
Mr.. Elliott said:
I'VE are letting the future take care
of itself"
New Haven began paying dividends
in 1873 and for twenty years thereart-
er maintained a 10 per cent rate. In
1894 it fell to 9 per cent: in 1895 to 8
per cent, while 1t continued until the
early part Of this year when dividends
were u to 8 per .>cSfr, on the basis OF
IL per cent cuaI4$&Ey.
A new low record for the. stock was
made on the local exchange yesterday
when 1t fell to 7ih or less than one
third of its quoted price a few years
ago.