Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1922-02-27
STREET RAILCO.
DEFERS PAYING
ONE DIVIDEND
Necessity for Revenue to Meet
Obligations Reason for
Decision.
HOPE TO MEET CHARGES

The Indianapolis Street Railway Com
pany today announced the passing Of the
regular quarterly dividend on the S., O0O,-
900 preferred stock, which forms the
underlying security of the system as 1t
was reorganized when the indianapolis
Traction and Terminal Company ceased
TO operate it.
Notice to the preferred stockholders
was as follows:
After a careful examination of the
companys present financial resources, the
board of directors deem it advisable to
defer the payment of the quarterly divl-
dend due March 1, 1922.
THE urgent necessity Of an increase
in revenue in order that the company
may meet It's obligations, including the
dividends on the preferred stock, and
make necessary improvements is again
being presented to the public officials and
it is hoped that the justice of the com
pany's claim will be recognized so that
the payment of dividends may be re-
sumed as speedily as possible
INDICATION OF HOPE TO
MEET FIXED CHARGES.
This notice to preferred stockholders
discloses that in the presentation to
city officials of data concerning the
company recently the company officials
hope that they have taken q step which
will enable them to meet the fixed
charges Of the company which have
Become impossible under the present
operating conditions.
The company has heretofore empha-
sized its inability to make extension or
maintain the street car system under the
present operating revenue, but it has
haf
nue. was insufficient to meet the interest
on the one-third Of its securities on which
a return was practically guaranteed.
In the last ten years the common stock
holders of the street car company have
received practically no return on their
investment. but for a number OF years
the preferred stockholders continued to
receive regular dividends on stock that
constituted one-third Of the securities
OF the company. Now, the company Is
unable to pay the per cent on the So,
900 preferred stock, which means II
Is unable to pay an equivalent of per
cent on the total of its securities, the
face of which is less than the appraisal
Of the property used and useful made
by the engineers OF the public service
commission several years ago.
CITIZENS COMMITTEE
HOLDS FIRST SESSION.
y committee Of seven citizens appoint
ed Saturday TO assist the board Of pub
lie works and city administration in its
investigation Of the financial situation Of
the street railway company, was to meet
at o'clock this afternoon to organize.
Thirty civic and labor organizations
had representatives at a general confer
ence called by Mayor Samuel Lewis
Shank Saturday after considerable
wranglng the large body could come to
no definite conclusion, so left the matter
of making a detailed investigation TO the
smaller committee with instructions to
report in two weeks.
Members OF the committee Of seven are
J. Stephen Fullen, Enterprise Civic
League; l.. c. Schwartz. Central Labor
Union; O. Snethen. chairman Of the
Federation Of Civic Leagues Of Indian
apoIis; o. 7. Owen, Klwanis Club ;
Thomas p Harvey, Exchange Club; A.
lie Roy Portteus, Brookside Civic League,
and Mrs. Martin j. Reinel, Original
South Side Women's Club.