The Richmond Virginian. (Richmond, Va.) 1910-1920, 1914-01-03
ADAMS EXPRESS CO.
WILL CUT DIVIDENDS
STOCKHOLDERS ARE GR.ATIFTED
THEY CANNOT LOOK FOR AS
MUCH.

PHILADELPHIA, Jan. THE
Adams Express company has decided
that the only way In which 1t can re-
gain the prosperity 1t enjoyed before
the parcel post came into being Is to
stop fBhting the new conditions which
confront 1t and get down to new
working basis.
This fact IL made clear in a circu-
lar letter, which has been received by
stockholders Of the corporation In this
city. The letter. signed by W. M. Bar
spread use of the parcel post has cut
into the earnings 30 deeply that 1t
will be nee sssary to reduce the usual
$12 dividend per share next year.
Sti1l More Trouble.
He cites tho fact that express COM
panies will be still further hit by thu
extension OF the parcel post weight
limits on January LIST. and the de-
crease Of Is per cent in express rates
ordered by the interstate commerce
commission, to take effect on Febru-
airy LIST.
But, he says, the express companies
have decided that the only thing for
them to do is to accept the commerce
commissions rate ruling, end realize
that the parcel post is q permanent
competitor and get down 10 a new
working level.
With that end In view, he says. the
company during 1914 will reduce op-
Grating expenses all along the line and
hopes to be able by the end OF the
year to show that the storm has been
weathered satisfactorily
The letter Ia a. follows:
'"rhe competition of the parcel post
began on January 1, 1914. with weight
limitations Of eleven pounds. In Au-
gust the weight limit was extended to
twenty pounds. with reductions In
rates within a radius of ten miles.
within which weight and distance
large part of your company's business
is embraced.
This competition has materially at
fected our business. A further extern
sion Of the parcel post weight limit
to nifty pounds for a distance Of $50
miles and under the extension Of the
twenty-pound limit to all distances. to-
gether with a further reduction In
rates, will become effective January /,
1914
There was an increase last year OF
nearly 10 per cent lathe operating
expenses OF your company. due prin-
cfpally to the increase In the number
Of employees, made necessary by the
new form Of single entry way bill and
other requirements prescribed by the
interstate commerce commission. and
to the increase In wages OF employees,
and the increase cost of material and
supplies used in the conduct Of our
business
THE reduced express rates ordered
by the interstate commerce commission
win go into effect on February /, 1914.
and will likely. probably involve a
reaction in the gross revenue OF your
company. In notifying the commits
sion OF the adoption OF the new rates
the express companies made the follow
ing statement;
The express companies have given
the fullest consideration to the sys-
tenn of express rates framed and Is
sued by the interstate commerce COM
mission. and although they have grave
apprehension as to the outcome. they
have concluded to put that system in
force. hoping to receive the co-opsra-
ton Of the interstate commerce COM
mission and the public
There was a deficit from express
operations during the fiscal year end
Ing June 80. 1919. of $8g,6f2.77: and
the income OF your company from
other sources during that year was
insufficient to pay dividends at the
rate OF $12 share per share per an
mum. The deficiency was paid out OF
the accumulated net earnings OF past
years
"a continuance OF the present rate
Of dividend will not hereafter be war
ranted. The present value Of the
property Of your company, however.
In the Judgment Of the toard. is
equivalent to substantially moro than