The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-08-22
Dividend Cut From 5 to
4 Per Cent Annual
Basis.
ROAD WILL LIVE
WITHIN INCOME
General Manager Johnson Makes
Many Changes Among Oper-
ating Officials. Paul Ste
vens Transferred to Rich
mond as Superintendent
Virginia Division.

Following the announcement from
New York yesterday tnat directors OF
the Chesapeake and Ohio Railway
Company had cut the annual dividend
from to per cent, in effort to
live within It's income. General Man
Hger George p Johnson announced
general shake-up among the operating
officials. effective September !. High
officials OF the company state that both
in tho line of efficiency in operating and
in financial management. vigorous ef
forts are TO be made to bring the road
TO a stable business basis. and to re-
move 1t as far as possible from the
field OF speculation and stock manipu
lation.
That there would be some change in
tho dividend has been anticipated since
the report tor the fiscal year ending
June 80 showed "a decrease In net earn
ings. Stock wires had predicted that
the directors would merely pass this
dividend. in the hope OF retaining the
per cent basis later, but the direc-
tors took the more conservative course
of declaring per cent quarterly
dividend NJ this period. coupled with
the statement that for the present the
road would be operated on per
cent basis
ShnI;e-Up Among OmcinIs.
General Manager Johnson. who has
recently assumed active charge OF oper-
Rtior, OF the Chesapeake and Ohio sys-
TEN. will issue circular 10 day max
inc the following changes. effective
September |
G. c Walker. now general superin-
teudont OF transportation. 10 be assist
ant to the general manager. with Office
mt Richmond
f. =. O. ,odwin. now general Inspector
OF transportation. to re superintendent
OF transportation. with Office at Rich
roud
j. W. Knapp. now genera superin-
tcndent Of the Virginia division. with
headquartcrs at Richmond. to be super
intcndent OF terminals At Newport
News.
j. Paul Stevens. now general super
intendent OF the Kentucky general di-
Vision. with headquarters at Cincin-
natl, 10 be superintendent OF the Vir-
Iinia general division, with headquar-
ters at Richmond succeeding Mr..
Knapp.
w r. Hudson. now superintendent
of the Chesapeake and Ohio Railway
Company Of Indiana, with headquarters
at Peru. Ind. to he general superin-
tendent of the Kentucky general divi-
sion and OF the Chesapeake and Ohio
of Indiana, with Office at Covington.
Ky.
T. /. Ford. now superintendent Of
terminals nt Newport News, 10 be su-
perintendent OF the Richmond division.
with Office at Richmond.
the Richmond division. to be superin-
tendcnt OF the Ashland division, with
offices at Ashland. Ky.
w. L. Booth, now superintendent
Of the Ashland division. to be supcrin-
tepdept of the Chesapeake and Ohio Of
I'M hiaha. with headquarters at peru,
Ind.
Divisions Consolidated.
The Grccnbrier division from Ronce-
verte to winterburn, w Va. is con-
solidated with the Hinton division, and
placed under J. Il. Harris now super
intendent OF the Hinton division, with
headquarters at Hinton.
General Manager Johnson left yes
terday for an extended Western trip
over the road and will be Joined by
President George w. Stevens. who left
New York shortly after the meeting
of the directors yesterday morning. The
tour Will occupy about n week
Local officers of the company ex-
pressed relief rather than surprise at
the action of the directors in cutting
cordance with the actual earnings of
the road, and the belief was expressed
that It would mean much more stable
conditions.
soon after Mr. Hawley took con-
troll" said official OF the road yes
terday "the Chesapeake and Ohio had
fat year. Everything prospercd, and
the losses were almost nothing. The
directors evidently thought they could
keep up the pace as they at once adj
yor ced the dividend to a per cent
basis. paying 4 per cent quarterly.
Stock Hammered Down.
That the pace could not be kept up
was soon evident Two years ago n
financial paper published in New York
accused the Hawley management of
sacrificing maintenance to dividends
and gave elaborate figures to show
that the road was paving. n larger divi-
Il, nd In proportion to it's earnings and
in proportion to IFS annual outlay for
hctterment of roadbei and cquipm ent
than conditions justified. The stock
OF 'he company was hammered down
from around so to about so, where. on
n s per cent basis. 1t represented 10
rcv cent investment. The marke ct
closed yesterday at 81 SIS. n slight
increase being noticed after the an
nounccment was made that the divi-
dcnd would not be passed.
The disastrous foods over the Middle
West. which did millions of dollars of
damage to railway roadbed In Ohio
and Indiana putting the Chesapeake
and Ohio practically out of commission
for some days and requiring an imme-
diatc and extensive outlay to restore
the permanent way. brought the ma alter
TO crisis Tho long -drawn-ou labor
disputes In the Kanawha coal fields
served to curtRil coal shipments, both
East and West. further reducing the
GrosE income OF the road. making the
year just closed one of the most dis
CONTINUED on Last Paso.)