Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1922-03-16
RAILS LEAD IN TUMBLE,
81. BUT RECOVER DECLINE
Great Northern Directors De-
eide to Make Scnnian-
nual Payments.
NORTHERN PACIFIC no MEET
Expect Similar Action VIII Bc Taken.
New York Central Declares It's
Regular Quarter Divfdcnd-Rnil
Earnings Increase.
I...NournEuN PACIFIC TO MEET

NEW YORK. March l5.--Amcrican
Can. Consolidated Gas and other pub
lie utility shares. Rock Island and n
~ number OF railway stocks were maxi
ing new high records for the year on
very heavy trading when tho news
t!ckcrs around | o'clock printed Il
story 10 the effect that the Great
Northern directors had held their
regular quarterly dividend meeting
without making any statement OF
what action had been taken. and that
an announcement would be made
later in the day Indicating that the
regular Z per cent rate paid for a
generation would be cut
This caused n raid to be made on
the whole stock market. Great
Northern leading with decline from
so 10 1ss while Northern Pacific
broke from S2.. the high for tho day.
10 IS. afterwards recovering large
part OF this decline. The consensus
Of opinion in the financial district
was that the Great Northern incr-
dent was used by traders to get back
stock that had been sold. industrials
as we'll as rails.
1t was subsequently officially an
~nounced that the only change 20
be made IN Great Northern dividend
was to make semiannual payments
instead Of quarterly. Northern Pa
ciic directors are scheduled to meet
week from today, and presumably
That dividend. too. will he changed
from quarterly to scmiannual basis.
with the annual rate remaining at Z
per cent.
Extends the Time.
This change gives the directors OF
the I'M roads longer period to
watch current developments. Great
Northern and Northern Pacific did
not earn their per cent dividends
last year from operations. However.
the regular dividends were paid from
income obtained through extra Bur
linEton dividends. Both Great North
ern and Northern Pacific have a large
accumulated surplus from which the
regular per cent dividend could be
paid indefinitely. 1t Is wise for the
directors TO take the longest period
possible TO consider dividend action.
New York Central declared it's
regular Il per cent quarterly divi-
dcnd today.
Another interesting news develop
ment OF the day crecting the rails
was dispatch from Washington an
nouncing that the Interstate Com
merce Commission had fixed April 81
as the day to begin hearings on the
merger of all railroads of tho coun-
try under n limited number of sys-
tens as ordered by the new trans
portation act OF February. 1920. The
roads in the Southwest. it was
stated. would he taken up first.
Money loaned today at 81 \ ship
ment of s4.5o0,0o0 gold was received
from Sweden.
The annual report OF the American
International Corporation for 1921 is
far from favorable Recent predic-
tons were 10 the effect that n small
profit would be reported for the year.
This was tho case. but nothing was
heard of further adjustments. which
wiped out the profit and loss surplus
The balance sheet shows n deficit OF
S".S?o,Qoo against n surplus Of S24G7-
Oou q; the close of the previous wear
I'm addition to this. however. the
statement shows that no provision
has been made for the difference he
tween The market prices of securities
owned ana the price ut which they
arc carried on the balance sheet
which is calculated az cost The bal
ance sheet shows such securities car
rted at Se9.2l6.o0o. which on Dcccm
Der 81 wcs :ll,6oo.0 900 above the mar
ket price. by Sf-,rch li.the difference
had been rct-ucst to $4,000. 900.
Rise in the dividend paying ran.
road shares Is looked upon as n
healthy sign. II is based upon OK.
pectations that the February earn.
ings reports to be issued soon Will
show Improvement In view OF the
steady increase IN car loading since
the beginning OF tn" year. March
earnings are also understood TO bt
making good Roadway. Wall stree
does not look for any reduction II
freight rates without a correspond
inE reduction ia costs
Eumors are being circulated In tn,
financial district 10 the effect tina
the Standard oil OF New York will b,
the ncN, company in the STANDARD
group TO declare q big stock dividend
With the advance in gasolenc price!
the standard companies are due t,
max" big profits. az they have beer
storing gasolcnc in big uuantitic