Evening star., 1942-12-13
Dividends Increase,
But Many Carriers
Still Pay Nothing
RoIf q Dozen Lines
Still Provide Bulk
Of Payments
EY ]. A. EOE.

/ n o<A'
The wcr boom will m ke it pos
sible for approximately 50 class ere
railroads to pay di''idendS this year
a. compared to Al in l94l, but
there will be about 90 carriers
whose stockholders get no return on
ports to the Association of American
Railroads. The figures also show
that the bulk of dividend payments
will continue to come from a half
dozen lines, particularly the big coal
haulers.
Among the roacs that are getting
back on paving basis this year
usually after the Lapse of more than
a decade-are the Erie, New York
Central. Chicago e. Eastern Illinois,
! Southern Pacific and Southern.
Others may be added to the list by
January l. IS dividends sometimes
are not declared until the end of
the year. A few lines-notably the
Santa Fe-are incre9 sing their pay
ments, but returns for the first nine
months of 1912 indicate that dis
bursements this year on some roads
will fall below those for 1941. be-
cause of increased expenses, includ-
ing taxes.
| Net Income Improves.
The railroads ended 194l with net
| income of s517,i53805. and paid out
in dividends s185. .764 ,006. The net
| for this year will be HIGHER, but no
estimate is vet available. For the
first 10 months it is figured at $707.-
| 100000 Dividend payments for the
first nine months of 1912 have been
$97,952,720 as compared to $685.,
508,6l7 in 1941.
More than a third of the total
payments this year have come from
the four roads in the Pocahontas
region, their dividends amounting
to s33,144777, broken down as fol-
lows Chesapeake & Ohio, ST.
! 636.5S5 Norfolk e. Western,
Sll 900. 300: Richmond. Fredericks-
burg & Potomac. SA35 ,229. and Vir-
ginian, s4022 ,663 The coal traffic
| is responsible for this showing and
dividends for the year probably will
be at the s55 900 900 level of l941.
Next comes the Central Western
region, with S29,349439 for the
three quarters of 1912. Of the II
reads in this group, only five are
on a dividend basis. and one of
these the Toledo, Peoria & Western,
| has been taken over by the Gov
ernment as the result of the row
between the management and en-
| ployes. The Santa Fe and Union
Pacific account for all but a frac-
ton Of the dividends from this
group. in which three of the prin-
cipal carriers-Rock Island, Denver
& Rio Grande Western and Western
Pacific are in trusteeship.
Only Nine Roads Paying.
In the Central Eastern region.
including 18 roads. only nine are on
a paving basis. and Of the 15,713,3l2
in dividends declared this year, the
Pennsylvania was responsible for
$9,875.816. Four of these lines.
among them the Monon, also are in
trusteeship.
The Southern region, which has
rs lines. reports II on a dividend
basis. and disbursement this year
totaling $9,837 1896 The Louisville
& Nashville, with a huge coal move
ment, paid out the largest portion
Of this-S5 $50, ,000-in nine months,
which was a quarter Of million
dollars under l94l The Southern.
coming back to the ranks of the
dividend PAYERS after II years. de-
clared dividend of s750,000 on pre-
ferred stock.
In the Northwestern region with
IS roads, five are paying dividends.
Slightly more than S3,000000 hes
been declared this year, virtually all
by the Great Northern, but the Du-
| luth, South Shore & Atlantic, which
last year had dividends in excess of
$14.O0O,00 is still to be heard from.
In this region the insolvent lines
include the North Western and the
Milwaukee,
The Great Lakes region shows
eight lines out of % on a dividend
basis, including the Erie. not long
out of receivership. whose 50-cent
dividend on common stock was the
first in memory. The Erie payment
| was S3.182 .O30 Another Great
Lakes line, the Pittsburgh e. Lake
Erie paid out $5l8l.9 900 last year,
but for the first nine months of
1912 has showed only $1.727300, as
compared to S2,l59,125 for the COM
parable period of 1941. Five of the
regional systems are in trusteeship
or receivership, including the Wa
bash.
But 4 of 20 roads in the South
western region are making pay
ments, and eight, including the
Frisco holdings, are insolvent. Divi-
dend payments this year have been
less than a million dollars. but later
reports should better this showing.
The New England region is in the
worst shape of all. The boom of
last year was not sufficient to put
any of the 10 lines in the dividend
paying basis. and there is no indi-
cation of pickup now Here, the
New Haven and Rutland are in
solvent.
Rate Cuts Opposed.
The railroads are due to file an
answer this week to the OPA appli-
cation to the Interstate Commerce
Commission to cut rail rates as an
anti-indation move, and it is ex-
pected that the dividend data will
be one of the arguments marshalled
by the carriers in opposition to the
reduction. the point being made
that the improved condition of the
industry has been only slightly re-
f1ected in the return to investors.
1t also is believed in rail circles
that the carriers will emphasize that
in many instances the increased
revenue is being used to improve
their financial structure, weakened
in thu 1o,,u yoorc ~ Sacljrinu b,,ci