Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-12-18
RAILROADS
CUT THEIR DIVIDENDS
Weakness in Stock Market Follows,
But Is Checked by Rate
Decision.
Local Bond Issues Were Inactive,
But Steady as to Prices.
Financial Gossip.
BY I. A. FLEMING.

Two important railroad corporations
yesterday reduced their dividends, in
dicating conservative action on the
part of their directors in meeting ex-
listing conditions.
The Louisville and Nashville dividend
for the semi-annual period was reduced
from the usual az per cent to 21e per
cent. The company entered on BE-
per cent semi-annual basis in 1909 and
yesterdays reduction was the first va
ration since then.
In 1898 the rate was A. per cent an
nually; before that, from 1894 to 1898.
no dividends We're paid; 31h per cent in
1899, to per cent in 1905 and 61s in
1908, and * in 1909, before the estab-
lishment of the I per cent basis, pay
able semi-annually.
The Atlantic Coast Line declared a
2k per cent Semi-annual dividend, as
compared with Is per cent six months
ago.
Both companies are allied. and the ac-
ton of one was. expected to be followed
by the cut in the other.
These reductions We're unlocked for,
although both roads operate largely in
the southern sections of the country.
and both have been more or less seri-
ously affected In earning capacity by
the conditions prevailing in their ter
ritory.
The Atlantic Coast Line will be bene-
flied by the advance in freight rates
and the Louisville & Nashville may OBJ
tain higher freight rates under the rul-
ing.
These reductions were the dominant
influence on the New York stock mar
ket Immediately following the opening
of the exchange. Prices declined on
the leading rails ! to points and the
list showed positive weakness.
This trend was brought up short with
the announcement of the rate decision,
considered as the one thing needful
for the railroads of the country.
While the decision handed down to-
day was applicable to eastern classi-
fication, it is presumed that the western
roads will not permit any long period
the door of the interstate commerce
commission, seeking similar advances.
Predicted November 4.
The ruling, in it's salient features,
was predicted in this column two
weeks ago today as "a probability of a
comparatively few days"
1t is reported that but for the crush
of work in the government printing
office the decision would have been an
nounced last week.
Stock Action.
AS stated before, the decision checked
the decline and brought about an aver
age recovery of about one-half point.
but with the improvement in prices
there was but little life in trading.
sales to 1 o'clock this afternoon being
but $1,000 shares.
Copper was an exception to the gen.
eral action, with a two-point advance.
Canadian Pacific was n lower. Great
Northern was off a point, as was
Southern Pacific.
Among the industrials American To-
bacco was especially weak, being 3H
points lower.
Local Securities.
While there was a fairly good show
ing of strength in local bonds. the de-
mand was not very active. Transac-
lions were restricted to $4,000 bonds,
par value.
The best strength was shown in Wash
ingten Railway and Electric per
cents, the weakening tendency of the
last few days being checked and an
advance to S0@ for $1,000 bonds. with
one sale of a $500 bond at 102. Bid
price at the close was sos, with 81
asked.
Washington Gas 5s were steady at
1903, a point decline during the week.
Bid and asked quotations do not show
much change.
Financial Gossip.
Phelps, Dodge & Co. have declared an
extra dividend of dollar share. in
addition to the regular distribution Of
$3.50 a share.
The Indiana Pipe Line Company has
reduced its dividend from $3.50 share
paid three months ago to 81 share
the reduction having been steady with
RncCoedlng from