Erie Pays

Holders of Erie Railroad first and second preferred stock were last week cheered by the decision of Erie directors to pay a $2 semi-annual dividend. It was the first time that Erie preferred had paid a dividend since 1907. The common has never paid a dividend, but common dividends may soon be declared if Erie's present earnings continue.

Resumption of dividends resulted largely from the work of able John Joseph Bernet, put in charge of the Erie in 1927 when the Van Sweringens began operating the road. Last month, leaving Erie to become president of both Chesapeake & Ohio and Pere Marquette (TIME, June 3), he was succeeded by Charles E. Denny.

The Erie (third oldest U. S. road, founded 1832) showed fair progress up to and through the Civil War, then passed into the hands of Jay Gould, Jim Fiske and Daniel Drew. There followed a long series of unprofitable years, during which the Erie was an "orphan" road, no one interest controlling it. In 1924 the Van Sweringens secured control, and the Erie soon began to show a profit instead of 3 loss. Erie's 1927 net income was $3,512,650; its 1928 income was $10,002,883. For the first quarter of 1929 it showed a net of $2,143,839 against $361,771 for first quarter of 1928.