New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-12-11
MANY BIG EXPENSES,
ONE REASON GIVEN
Elliott, III a Statement, Says
Wages and Safety Will
Cost Much.
BLOW A HARD ONE
TO NEW ENGLANDERS
Road Once Paid 10 Per Cent,
Then s, Finally 6-Anxious
Queries Come by Scores.


Queries Come by Scores.
| For the first time in forty years the
| New Haven road has failed TO declare
regular dividend. The directors, after
| more than two hours discussion, voted
unanimously yesterday afternoon that
| the best interests OF the stockholders
/ would be better conserved by suspend
ing the quarterly dividend "at this
| time"
| Howard Elliott. the chairman OF tho
| board, in a statement at the close OF
the meeting said the company was
entering upon a dull season, and that
the increase in wages called for by the
| arbitration board, the Improvements to
which the road is committed in the in
terests of safety and efficiency, and i'm
portant lawsuits and Investigations
pending, all of which would be heavy
drains on the resources of the road, all
combined to make necessary the sus-
| pension Oh tlt uiNIucilu'
He said the New Haven was
strong company" with securities and
real estate worth many millions,
which in time might be marketed to
strengthen the cash resources of the
company.
1T is very difficult to sell property
and securities at this time he said,
"and the directors Believe it is unwise
to attempt to do S, until general con-
ditions are better"
No Hint as to Future.
When Mr.. Elliott was asked whether
the suspension Of the quarterly owl
dend was an indication of suspension
| OF subsequent dividends for the fiscal
wear he said the future would have to
look out for that
One of the most important considera-
tions which the directors faced was the
legality of the companys bonds as saw
ings bank investments. as the laws OF
several states required at least per
cent on common stock for five 'consecu-
tive years DeloIc thc OohNS
legal investments for the banks gov
erned by them.
"The board found that the compan,
has already paid ) per cent on its COM
mon stock for the calendar year, snd
therefore the bonds are protected, Mr.
! Elliott explained
! Reports of the impending suspension
of divided wrought most OF its havoc
! on New Haven stock in Wall Street
last Tuesday, when it fell to the new
low record Of T1ia. Yesterday the
stock closed at 72s.. UP q, but declined
during the day TO 111a, less than one
third its quoted price a few years ago.
Between 1887 and 1898 New Haven
sold at 30. In 1902 it sold az high ns
90. Since the election of Charles ;.
Mellen to the presidency the stock has
declined slowly but surely, and IL is es-
timated that upward of SlOO,O0OOo
has been lost to New England invest
ors alone during his regime.
From 1873, the year Of its organiza-
ton. until 1880, the New Haven paid
! 10 per cent. In 1881 1t paid ~. but in
{ 1882 it resumed paying 10 per cent
until 1894. when 1t dropped to per
cent. The next year IL dropped to
per cent, which was ms tained until
the March quarter of 1918, when 1t was
cut to per cent.
Action a Blow to Many.
Yesterdays meeting of the directors
was perhaps the most momentous event
1 in the history Of the road. All over
the country, but particularly in New
England. the decision of the board
meant relative luxury. or comfort or
even poverty for those who anxiously
waited to learn what the serious score
of men sitting around the magnificent
walnut table in the presidents room at
the Grand Central Terminal might do.
| Before the MelIen days the New
Haven was the pride OF New England.
and especially OF shrewd Yankees.
Widows and orphans considered that
their material welfare was absolutely
| safeguarded when they were fortunate
enough to inherit or invest in blocks Of
New Haven stock
There was loud murmur in the Nut
meg State and the Bay State, In Lit
tie Rhody" and as far north as Maine
and New Hampshire when the rate was
cut from s to per cent this year. In
| ,.o,,or, ecrewed IN their coifrao 90 all
this time, however, and there was lit
tie liquidation. Genuine alarm came
when Mr.. Elliott soon after predicted
that the rate would have to be cut to
4 per cent and perhaps passed alto
gether.
While the directors were going over
the situation stockholders kept going to