Evening star., 1942-06-19
Erie Declares First
Common Dividend
In IS Years
RoiIrood Announces
1eieIes Sprouted
In He'll at Lost
Py the Associated Press.

| Py the Associated Press.
NEW YORK, June l9.-Stock mar
ket news tickers suffered today over
phrase they never before had
printed: ..f. A'e
80 cents Erie Railroad Co. divi-
dend on common
1t was the first common stock divi-
dend In three-quarters OF century
for the much-reorganizeda and fought
over road.
The Erie itself said:
"Icicles sprouted in hell today.
"The Erie Railroad Co. declared a
dividend on its common stock.
"The dividend of so cents a share,
payable July 10 to stockholders Of
record June 80, is the first common
stock dividend ever paid by the pres
ent Erie Railroad Co., organized in
1895, and the first paid by any Erie
company in rs years. Holders of
certificates of beneficial interest will
also receive the dividend.
Tradition Shattered.
Thus Wall Street tradition was
shattered and brokers were dazedly
cropping for reliable requirements
for the immemorial dictums:
when Erie common pays divi-
dend therell be icicles In hell and
three things are certain: death,
taxes and no dividends for Erie
common
The roads directors in voting the
dividend even indicated there might
be other dividends later.
The first payment. they said.
would be from 194l income and was
voted after consideration Of future
prospects as well as past operating
results"
They announced:
The company's income available
for charges for the year l94l totaled
$21,77S,543. After provision for al
fixed and contingent charges and
dividends on preferred stock there
remained a balance Of $7,305 pa. anc
it is expected that the results for
the present year will be at least as
good as those for l94l.
Other Legislation Helps.
Additional helpful legislation
was enacted recently with respect
to taxes in the State of New Jer-
sey, but such legislation, together
with that enacted in 1941 remitting
certain penalty interest on unpaid
taxes, is under attack by the at
torney general of the State of New
Jersey, and it is not yet possible to
say what will be Federal income and
excess profits tax effects Of Erie
reorganization"
The directors also pointed out
that about 80 per cent OF the roads
present common stock was issued to
refunding and improvement mort
gage bondholders in, the recently
consummated reorganization.
That new setup. observers pointed
out, was what made possible the net
income reported. for it permitted
reduction of fixed charges from
sl4,OOO0O0 annually to about S.
800 ,000
The dividend came on the heels of
a report Of two record business
months Gross revenue for April
was highest for any April in the
company's history and May figures
the highest for any May in the past
20 years.
The company's statement took ad-
vantage of the startling develop
ment-which shot Erie common up
point on the stock exchange and
brought feverish activity to the pre-
ferred and bonds-to point out:
AN Erie man sent the first train
order by telegraph wire.
AN Erie man organized railroad
service Of supply for the Union in
the Civil War
Eleven Erie men have become
presidents of other American rail-
roads.
But it took the present crew to
declare a dividend on Erie common. I"