New-York tribune., 1917-07-27
St. Paul Cuts
Dividend Rate
To 4 Per Cent
Earling to Resign Presi,
dency, but Will Retain
Executive Position

A. ]. Earling, president of the Chi
cago, Milwaukee e. st. Paul Railroad.
following a meeting of the directors
yesterday, at which the dividend rate
on the common stock of the company
was reduced from 5 to per cent
basis, made the announcement that he
expected before long to be relieved OF
some of the mere arduous duties of
his Office.
Mr.. Earling explained that, having
nearly reached the age of threescore
and ten, and having spent the last nifty
of those years in active railroad SER
vice, he felt the time had come when
he could with a clear conscience take
life g little easier.
Committee Appointed
The directors authorized Mr.. Earling
to appoint a committee "to cooperate
with him in making the changes in the
bylaws and organization of the company
necessary to carry out his wishes"
Does this mean you are to become
chairman of the board of directors y
Mr.. Earling was asked.
THAT depends upon what the direc-
tors see fit to decide" he replied. Asked
who he expected to be chosen to sue
ceed him as president of the road, Mr..
Earling said:
"That is a matter which rests with
the board of directors, Also And then,
swinging around in his chair, he added
with some emphasis:
"Of this you may be assured shall
not sever my connection with the st.
Paul road"
It is understood that the appointment
of committee to alter the bylaws Is
for the purpose of providing for
chairman of the board of directors, to
which office it is expected Mr.. Earring
will be elected when he resigns as
nresident. The members of the COM
mittee are Percy A. Rockefeller, John
D. Ryan and ]. Ogden Armour.
The outcome of the meeting was IN
line with predictions which have been
heard in Wall Street for several weeks
past, and, incidentally, it is said that as
a result of the action taken differences
which had come up between influential
stockholding factions had been smoothed
over.
Increased Expenses Cause Cut
In voting to reduce the semi-annual
dividend on the common stock to per
cent the directors are said to have been
Influenced by statement of earnings
presented at the meeting, which showed
that the increase in the 81. Pauls oper-
ating expenses due to higher wages and
the rising cost of railroad supplies ana
materials had made deep cut INTO
the earnings of the road, although tne
latter have been showing substantial
increase in the last three months.
Back in 1901 the st. Paul raised the
dividend rate on its common STOCK from
( 70 per cent. In the following year
il was increased TO Z per cent, ana ina!
rate was paid until 1912, when it was
cut to per cent. There was further
reduction of y per cent in 1915, but
in 1916 stockholders received per cent.
The announcement of the reduction
voted yesterday was made about ttteen
minutes before the stock market closed
and within that brief period trading in
St. Paul shares attained considerable
volume, the price of the stock being
hammered down by professional oper-
ators to IS, when the news first came
ont, then reacting with much show OF
buovancy to 69h, the upturn being
ascribcd to efforts of shorts to cover
The closing quotation was 699s, net
(,a;o of IA point for the day.