The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-09-30
INVESTORS TAKE
HUGE LOSSES IN
DIVIDEND CUTS
Paper Loss of $10.40 for
Each Person in U. S.
Is Shown.
BY ELMER c. WALLER,
United Press Financial Editor

NEW YORK, Sept. 30. - Stock
holders Of American companies
Thursday will receive third quar-
ter dividends, the amount slashed
by $175,O00, 600 from 1890.
This salary" reduction comes
because so far this year lat divi-
dends were omitted and lis reduced.
On an annual basis these changes
reduce dividend receipts for Amer
lean investors by $1,000, 100000 or
5000 for every man, woman and
child in the United States.
Since the bear market began back
in 1929, investors have had dividend
reductions which aggregate $780,
100000 or about SIS weekly for every
investor on the basis of 10000, 900
investors.
In addition, huge losses have been
incurred through omission of inter-
est payments by many corporations
and governments.
However great these cuts may be,
the decline in valuation of stocks
and bonds dwarfs them into inSigni-
ficance. u
Huge Loss for Country
Stocks listed on the New York
Stock Exchange as of Sept. l, 1929,
had a total valuation of $50, 668, 276.-
584. Just two years later, Sept. l,
1881, the Stock Exchange calcula-
ton placed the valuation of all
listed shares at $44, 587, 026,110. The
latter figure represents a decline of
$45, 081, 25O,744.
Since Sept l, stocks have shrunk
at least enough to bring the loss to
$50 100000 and if consideration
is given to listing of additional
shares on the exchange, the loss
could be expanded to 100000, 900, 900.
In addition, vast losses have been
incurred by curb stocks, bank stocks,
insurance and miscellaneous issues,
the latter not traded on regular sx-
changes and on securities.
One estimate places the loss in
valuation of all securities and stocks
in the United States at the gigantic
sum of SIPS 900, 900, 900 which would
mean a loss of $1,000 for every per-
son in the country.
All Glasses Affected
Of course, this is not all actual
loss, but it does represent shrinkage
on paper of that amount in full and
great deal of it does represent
loss in actual money The markets
loss of this depression can never be
accurately measured.
Just to obtain picture of the
vaStness of the sum of $125, 000,0 0O,-
600 apply it to salaries for 100000
| persons now estimated without en-
ployment in the United States.
1t would mean a lump sum OF
$20,833 for each of these unem-
ployed. That amount placed at in
terest Of per cent annually would
provide for life of 81, 441.65 and still
leave the principal intact. Or if
1t were divided without consider
ing interest it would last more than
twenty years at the rate of $1,000
annually for each of the unem-
ployed.
Wage earners today are included
among stockholders. Therefore in
addition to many persons losing
their positions through the depres-
sion or having salaries or wages re-
duced, they also lose large amounts
through reduced income of stocks
and bonds and through reduced
prices for the issues held.
On the basis of Walkers compu-
tations, indianapolis should have
3O,769 investors sharing a reduce
ton Of $538,47550 in dividends on
Thursday over those received Oct.
l, 1880.
These figures were reached bv
determination of an average on his
statistics after local financial ex-
perts refused to make an estimate
on Indianapolis investors share in
the huge loss.
AN estimator" asked one. when
requested for an opinion. The best
l could do would be a wild guess.
Working on the same basis. a ratio
dlscloses that investors here should
nave lost an aggregate of 1882 $50
since the bear market of 1929.