Evening star., 1925-06-18
v. R. &E. COMMON
T0PAY 2OPER CENT
Special Dividend Declared to
Reimburse Holders for
Four Lean Years.
BY CHAS. p. SHAEFFER.

d DL ST1t1S. SHAEFtEh.
Shareholders Of common stock of
the washington Railway and Electric
Co. were awarded $40 a share on
their holdings at a special meeting of
the board late yesterday, payable on
July L TO stock of record June %.
Inc payment, which will total ST.
ooo,ooO, assumes the aspect of back
dividend at the rate of 5 per cent
per annum for the four years from
1919 to 1923, when earnings of the
utility were at a minimum. necessi
talng passinug of disbursements on
the common issue
The action of directors definitely
sets at rest many and varied rumors
as 10 disposition of the company's
share of Potomac Electric i'm
poundage. This fund, created by fu-
tlle htlsatlon covering about six
Years mad amounted to s6,3S8,445.52
When ended last December by the
courts. which ordered $500, 900 set
ASIDE Tor the purposes of paying Fed
eral and District taxes, leaving s5,SSS.-
44o.oz TO be distributed equally be-
tween consumers of lighting fuel and
the company.
Dividend Expected.
Ihe payment came as little sur
prise IN the financial district, as il
mad been known for some time that
disbursement would eventually be
MADE Representations as to the
amount of the dividend ranged any-
where from Is to 80 per cent.
The North American Cornanv a
powerful utility holding company, will
pront most by the dividend action. as
thelr interest In this particular issue
approxlmates 47,00O, a considerable
majority of the $1,000 shares outstand
ing 1t is recalled that several wears
ago the North Americans entry into
local transportation interests was
neralded by purchase of 27,5Oo
shares OF Railway common at a price
around 62k.
Actlon Of Railway common on the
local market has long since discounted
Yesterdays dividend declaration. Quot.
ed today at 1875, the stock represents
per cent issue having a market
ieEei OF 20 points less, or 1O5
Inc entire directorate of the WASH
lngton Hallway and Electric Co.
was present yesterday with the excep-
ton of Charles j. Bell and Julius Car
hnkeI. both of whom We're inacessi-
bic. The action was not Unanimous
py any means, as a decision was not
reached until 6 o'clock, representing
two and three-quarters hours of dis.
cuSSion.
Ham Makes Statement.
The following statement was issued
pF Presldent w. F. Ham following the
meeting:
AT a special meeting of our hoard
OF directors, held today, consideration
was given to the disposition of the
company's share of the Potomac i'm
pounded fund. The total of this fund
amounted to $6,3SS44552 of which
100000 was, by order of the court,
set aside for the purposes of paying
FEDERAL and District taxes, leaving
! s5,SSS.445.52 to be divided equally be-
tween the consumers and the COM
pany. Distribution to consumers be-
gins on July L, on which date over
S1,0OO,G0O will be returned to the con-
sumers and the balance of about
s2,0OO,O0O will be paid as fast as
claims are proven.
Out of the company's share of
81 ,944,2 ,222.76, $1,000, 900 was ordered
| paid to common stockholders as A
special dividend to compensate them at
the usual rate for the period during
which dividends were suspended, leav-
ing balance of S1,644 ,222.76 for the
general purposes of the company.
This special dividend, amounting to
$50 per share, is at the rate of 5
PEI cent LOT edcn or the four years
during which dividends were sus-
1925, to stockholders of record on
June %, 1925.
Only Action to Take.
THE board of directors was con-
vinced that the payment of the spe-
cfal dividend to common stockhold-
ers was. under the circumstances
f.l h fFlrr =
stockholders went without any divi-
dendS for period of four years, due
| largely TO the reduction rates made
by the commission upon a theory of
valuation which was later decided bv
| the courts TO be in error. and the
court IN its decree of December 81.
1924. determined that substantial
justice would be done by dividing
the impounded fund equally be-
tween the consumers and the COM
pany. 1t will be observed that the
I company is reserving for its general
corporate purposes more than one
haf or its share of the impounded
fund"
Trading on Local Board.
Directors of the Security Savings
and Commercial Bank have declared
an extra dividend of l per cent In
| addition to the regular quarterly
disbursement of 3 per cent, both paw
able June 80 to stock of record June
J. Is
The Washington Mechanics Saw
ings Bank has declared the regular
quarterly dividend of 4 per cent paw
able July l to stock of record June 80.
| Riggs National Bank stock enioyed
sharp upturn on the local market
this morning, sales of AZ shares car
rying the price forward to 35311. or
/ y points under the best price rec
ord for the issue The sessions
strength was also manifested in Gas.
which held the firm level of 60: Cap
ital Traction at 9S7s and Railway
preferred at 49,
Bonds were firm, but sparsely trad
ed in.