Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-09-14
NEW TOP PRICE
FOR AMERICAN STORES
Reduction of U. G.. l. Divi.
dend Discounted by Re-
cent Decline

The letter of Samuel T. Bodine, pres
ident of the United Gas Improvement
Co.. to the shareholders. officially ad-
vising them of the intention to material
ly reduce the rate Of dividends on the
common stock until after the Philadel-
phia gas lease situation has been ad-
justed was the most important develop
ment in the local market. JUDGING from
the action of the stock this course had
been largely discounted by the recent
DerpcndiCuIar descent in the stock to
"a. Today the range Of fluctuation was
| between 80 and Sc.
| In his letter Mr.. Bodine said:
with the approva' of the board of
| directors | beg to advise you that while
| the dividend payable on October 10.
! 1920, will be at the rate of s per cent
per annum, as heretofore. in view of the
great losses which your company is now
suffering in operating the Philadelphia
| Gas Works, and of which I deem it
| proper that you should be advised. it is
| impossible to continue the payment of
dividends at the rate of per cent per
annum upon the common stock in the
! immediate future. Such dividends as
may be declared after October -, 1920.
must certainly be materially less than
heretofore, by reason of facts which
are fully set out in the enclosed state
ment; and the restoration of an s
ner cent per annum dividend rate is de.
pendent upon your company being able
to secure an amelioration of the condi-
tiOns mentioned.
"a portion Of your dividend paid
during the years 1919 and 1920, as you
know, has been charged against your nc
cumulated und vidcd profits OF pas,
years but the object of these acccmula =
tions is TO enlarge your business, as In
dicatcd by the investments composing
this fund, in carrying on Incorporation,
of the companies in various parts of tbs
country in which you are interested. II
is manifest that the present finanCia
conditions make it unwiSe to diSpaSe Oi
these securities at the sacrifice which
would be entailed. The yare, therefore
not available for cash dividend pur'
poses
From strictly market viewpoint
the outstanding feature was supplied
in the continued strength and activity
| If American Stores, which made fur
ther advance of $40 to 80, establishing
new high record. Profit taking later
caused a partial surrender of the gain
| The realizing was natural in view o.
| the SG advance the stock made since
| rho opening of the week. Nothing more
| definite was made known concerning
| the predicted increase in dividend rat
/ from / to i per cent, which, accordin!
/ to interest close to , the management
Il will probably not take place until thu
/ early part of next year, or probably a
/ the next dividend period, There is
dividend of / per cent payable OF
= October /. The action of the stock
4 however, disclosed there had beel
quiet accumulation for some time past
as the market was found virtually bar
of it,
Electric Storage Battery started ou
strong with a 50 advance at 1876, bu
subsequently surrendered most of tn
gain. The only other price change o
consequence was the advance of $3.50 il
| General Asphalt preperred, to 60, which
however, was from previous sale som
days ago. Philadelphia Electric con
tinued to sag, striking new low a
2OA. Few sales of the warrants wcr
made at an ls.
= The railroad shares were firmcr an
!; fractionally higher in sympathy wit
the fresh forward swing in those share
in the big market. There was little don
in the traction shares. Considerabl
sprinkling of the SO O-called New Yor
stocks helped to enliven the trading.