New-York tribune., 1918-02-01
St. Paul Directors
Postpone Action
On Both Dividends
May Make Declarations
Later, Though Earnings
in 1917 Were Poor

Directors Of tho Chicago, milwaukee, G
& st. Paul Railway voted yesterday to
postpone indefinitely action on the
semi-annual dividends, usually taken at
this time OF the year. Tho payments
six months ago were 8 Il per cent on
the preferred stock and per cent on
the common.
I'll. e. Byram, the new presiden. Of
the road. refused to state whether
there was any likelihood Of further
consideration of the dividend question
hofore March /, when the declarations
made in January arc payable. He in
tmated, however, that if the present
programme for government control
goes through St.. Paul will receive
enough to meet dividend requirements,
Speaking Of the government pro-
gramme he said: at is not as good as
we could get, but we shall abide by
whatever the government decides"
Tho company, Mr.. Byram said, will
issue statement to-day giving the de-
tailed earnings of 1917. The figures
he asserted, will show that the pre-
fcrrcd dividend had been barely earned
Corn Crop Threatened
While refusing to enter into detailed
discussion regarding postponement OF
dividends, Mr. Byram talked freely OF
conditions in the West He said this
years corn crop was in great danger OF
serious damage unless measures were
soon taken to ship the grain to large
terminals, where it can be dried out
Approximately IS per cent Of the
1917 corn crop of the country" he
added, "is still in the hands Of the
farmers and the country dealers. 1t is
ir a frozen condition and unless steps
are taken to have it dried out warn
spell of weather will cause much cf il
to rot. If enough railroad equipment
were available to ship the corn to the
big terminals in the large Western
Lad. With the Western railroads lack
ing proper equipment, due to the con
gestion in the East the situation, how
ever, appears very bad"
Mr.. Byram said that the recent bliz
yards in the West had done much to-
ward creating the unfavorable situa
ton in which the St. Paul road finds
itself at the present time. The com
pany is greatly handicapped in tht
handling of the large volume of bust
ness offered it because Of the lack o1
cars and locomotives.
This situation, Mr.. Byram pointed
tent by the company's construction
programme. The company is building
about 1000 boxcars and 1000 Goa
cars. Fifteen electric locom olives nov
in course of construction will release
fifteen steam locomotives for that par
Of the system which is not yet elcctri
fed.
Action Of the St. Paul director:
yesterday followed period Of unin
! terrupted payments on the preferred
stock since 1867. Since 1897 the an
nual rate has been Z per cent. Pay
ments on the common stock have beer
as follows: 1897-190O, 8 per cent; 1901
6 per cent; 1902-l911. per cent; 1912
1916, per cent, and 1917. "a pei
cent The rate was reduced from
per cent to per cent annually las
July
Shares Display Strength
Bond experts declared that yester
days action Of the board of director:
does not yet place the roads bond
out of the class where they are lega
Investments for savings banks. 1t wa.
pointed out that the dividends mus
have actually been passed altogethe,
before st. Paul securities would los,
their standing in that connection.
The announce ment that action OF
both the preferred and common stock,
had been deferred appeared after tn,
close OF the stock market. The pre-
ferred closed at 775s, up rs points
and the last sale Of the common wa
at 40, net advance of IL.