New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-12-04
RUBBER DIRECTORS
UNDER CRITICISM
Goodrich Co. Censured for
Delaying Announcement
Regarding Dividend.

ri announcements
= Goodrich Company, the rubber tire
.,orufacturing concern. that the directors
,ad declared the regular quarterly divi-
so,d Of Is, per cent on the preferred stock
"a meeting in Akron, Ohio, on October
., with no public announcement of the
declaration being made until last Satur-
Soy will probably lead to drastic action
-. tho Stock Exchange, where the stock
;s listed for trading.
severe criticism was directed at the Off
.ors and directors for Withholding TINS in
tormation because the stock was permitted
90 decline nearly Is points between october
% the day the dividend was declared. and
,ast Saturday. when the stockholders were
a,rrised Of the fact. II was this loss in
enc stock value that caused the Stock
exchange to take quick cognizance of the
,ction The committee on stock list has
,bs matter under advisement. and will In
al probability recommend to the gov
arninc committee the adoption of rule
that hereafter all corporations declaring
dividends shall make immediate an
rouncement of such action to the ex-
o,anee. or at such time as is deemed
reasonable
The officers and directors Of the Good
rcb company are blamed because of per-
,;stent rumors during the last few weeks
Of the possibility of a cut in the divi-
depd. 1t was pointed out that some re-
ossuring statement should have been
made by some one in authority that the
a,vidend had already been declared. NO
.ccusation Of irregular dealings has been
made against the Goodrich directors out
,ba onportunity presented of specializing
.. ,heir own stock and profiting ny their
.,-, rnovledse has led the governors OF
a. exchange to consider such action as
oil, nrevent any such contingency arising
in the future.
" ". Heaton, a governor OF 'he eA
change and chairman of the commit'ee
an stock list. said that this was the nrs'
instance in his twenty years experiences
an the exchange that a corporation hau
,r,,bbeld information Of this character
In 10 the present the only rule appSlhs
N dividend announcements has been that
making II necessary for corporations with
sbares listed 10 notify the secretary OF
the exchange ten days before the closing
~ the company's books. No rule for no
tIfying the exchange of the time Oh 'he
actual date Of dividend declaration mas
been considered necessary because II mas
heen the custom of companies to 1oilo"
the spirit of the law.
Philip Lehman. a prominent director Oh
the 3. +. Goodrich Company ana mem
her OF the banking house OF Lehman
BROTHERS,. said last evening that he ala
not attend the meeting last october when
the preferred dividend was declared MOI
did he know such declaration had oeeh
made until later. He offered this eNpla-
nation of the delay in announcing the dN-
idend:
.The directors. who usually meet at
Akron. Ohio. declared the dividend last
October because there happened 10 he
oporprn present. There was no intention
~ deceiviug the Stock Exchange, because
its REGULATIONS refer only TO the closing OF
a company's books. and the books OF the
b. F. Goodrich Company do not close
Mr. Lehman asserted that the directors
should not be blamed for the decline III
the company's stock, as that was due en-
tirely to influences over which they had
no control. Regarding the rumors current
last week of a possible reduction in the
dividend. +. \. Hardy, chairman OF the
board of directors. said on Saturday be-
fore the announcement was made that
the dividend had already been declared:
The directors have never considered
reduction OF the dividend. and its safety
has never been questioned"