New-York tribune., 1917-12-21
Remedy Railroad
Situation Promptly,
Says James Speyer
Affairs of 3. & o. Call for
Dividend Cut, Banker
Declares

James Speyer. the banker. who is a
director OF the Baltimore & Ohio Rail
road. said yesterday that while il is
the intention OF the board 20 declare
a semi-annual dividend on the common
stock at the meeting 20 be held in Jan
uary. the rate would undoubtedly be
less than 2i7 per cent. The reduction,
he said. would depend entirely on the
policy the government adopts IN re-
gard TO the railroads No change ~
the half-yearly dividend Of per cent
on the preferred stock is contemplated,
according to Mr.. Spcyer When it was
decided to postpone the common divi-
dend declaration Wednesday, action on
the preferred dividend was also de-
ferrcd as matter Of convenience.
4 Critical Situation
Mr. Speycr reiterated the statement
made bv Daniel +. Willard, after the
meeting of the board Wednesday. that
in deferrine action at this time the
directors were actuated by the hope
that there might be some favorable
deyelopmeuts within the next few
week, which would JUSTIFY more
liberal dividend on the common stock
than would now be possible.
The need Of applying lmmcdiately y
remedial measures to the railroad SIT
nation was cmphasizcd by Mr.. Spcyer.
while quotations FOR railroad Sc
cur.ties have declined enormously he
said. ct seems 20 me that the American
people DO not yet fully realize the
seriousness Of the railroad situation.
II should be remedieG promptly with
out fear or favor The longer % IS
DELAYED the more difficult II viii be 70
restore railroad credit, and this would
ultimately aEect everybody more or
less all over the country. Every weeks
delay is harmful and unfair TO in
vestors in railroad securities, and
prolonc5 the strain. not only as re-
CARDS our transportation system but
for the financial markets, at the very
time when extraordinary demands on
both in connection with the war have
10 be met.
Figures That Speak Loudly
AS regards railroad earnings, take
the Baltimore & Ohio as an example.
For the year 1917 the additional eX-
pense for wages. coal and material
alone amounted to SIG. 100000. while
additional income through the rate in
crease which came into effect during
the course of that year was only
$4,000 These figures speak for
themselves. and they reflect similar
conditions on all Eastern lines.
"For 1918, assuming the same
volume Of business, the estimated in
creased expenses for the Baltimore 4
Ohio, i'm wages, coal and materia!
alone, would amount TO about $2j,-
600 600, while tn, present rate in
crease would yield only about
SlO,OOO,OOO.
Not only are those interested in
railroad securities. directly or indi-
rectly. entitled to fair treatment, but
the American people generally. Tor
their own good, must insist on q
remedy and cure. This will not be 50
difficult. il action Is taken promptly.
The railroad problem must be taken
care of out of politics
Il. < u. Stock Declines
Baltimore & Ohio common stock re-
fected Wednesdays action OF the
board in deferring action on the divi-
dend until January by opening at .
decline OF "a points, the first aale
being at Al. Further selling carried
the price down to 39;s. the lowest
price in twenty years. The closing
sale was at 40l4. n net loss on the
days transactions Of 3ia points. The
preferred stock declined 20 5o"s ON
dealings Of 500 shares, = decline of 2ls
points.