The Washington herald., 1914-09-18
SEVERELOSSES
TOSTOCKHOLDERS
Dividends Have Been Discon.
tinued or Reduced in
Many Instances.
TWENTY MONTHS RECORD
Capital Traction on 5 Per Cent Basis.
District Tax Money Due
Railroad Reports.

Stockholders have suffered materially
during the past six weeks. Poor business
conditions followed by the war has been
responsible for some thirty-thFee corpora
tons disseminating dividends, while sew
eral reduced disbursements during that
period
Thus IN the short space of a month
about S4O0,0Oo0o0 more Of American capi-
tai has been transferred to dead weight
account, with an annual loss in dividends
of approximately 500, 100000. In addition
to this, two large copper companies, Ray
and Nevada Consolidated and one rail-
road, the Southern, voted to defer &C.
tion for time being on payment OF divi-
dends- Rays annual dividend require
ments have totaled S2,9O0.0Oo, Nevada's 81
900. 900 and Southern Railways $500 600
Since January l, 1913, when business be-
gan to show signs OF slowing up, stock
holders have suffered a loss in revenue
aggregating SS5,OO0,0oO per annum- This
SIS, Co., 900 has heretofore been paid annu-
ally on 81, 200, 90, 900 of stock, so that the
return to the investor. valuing the stock
at par. has been per cent. This Ss5,-
10000 loss is exclusive of the deferred
dividends of Ray and Nevada Consolida-
ted and Southern Railway preferred.
These figures include only the larger
corporations of the country, no account
being taken of the thousands Of smaller
concerns from which it is impossible to
obtain data Were these latter included,
the totals undoubtedly would be consi-
dersbIy larger.
Several important oil companies were
among those that passed their dividends
the past month Pure passed its quarterly
dividend of per cent, and South Penn
Oil passed its dividend, the previous
quarterly declaration having been 3 and
2 per cent extra Standard OH OF Kansas
passed its quarterly dividend Of 3 per
cent and Union OIL rescinded a dividend
OF per cent
In the past twenty months over one
hundred and fifteen corporations have
either passed or reduced their dividends,
of which twenty were railroads, and the
balance industriaIs.
Local Dividend cut.
The Capital Traction Company yester-
day reduced its quarterly dividend from
IL to IA per cent The action was
expected at the June meeting but was
postponed until yesterday. 1t seemed TO
be case OF cutting the dividend or i'm
pairing the service and the company
chose the former course.
In the course Of his letter to the stock
holders. Mr. Hamilton in part says II I
las has been shown in the annual re-
ports Of the company during the past
EtNG4dA years AuGlt mas DCN4A a Ae1
crease in fixed charges by reason of COM
pulsory extensions and complete new
equipment Of cars which, while giving ad-
ded and proper comfort and convenience
to the public brought no commensurate
increase in receipts
During the present year the passenger
receipts of the company instead OF show
ing the expected normal increase show a
decrease; this due in large measure to
the general business depression which
we confidently believe will be of tenn
porary duration. A full and careful con-
sideration of all the conditions forced
your directors unanimously to the con-
clusion that to serve the best interest of
the stockholders, the excellent physical
condition and the present high standard
of service now maintained. should be con-
tinued even at the cost Of a reduction in
the rate of dividend.
With the improvements in general con-
ditions now expected and foreshadowed,
the return to per cent basis may be
predicted confidently"
No other local dividend cuts are ex-
pected.
Western Maryland Railways August