Yellow Cab

The Yellow Cab Manufacturing Co., for the first time in its history, cut its dividend rates, from 41c. a share per month to 21c.--or from about $5.00 to about $2.50 per share per annum. Ac-compaying the announcement was an unusual statement from President John Hertz.

The Hertz companies had a very remarkable history in the Chicago stockmarket. The favorites of local speculators, many of whom became rich thereby, the shares of the Hertz companies sold at constantly higher prices. Frequently Mr. Hertz has declared that his stocks were selling too high, but speculators paid scant heed.

When the Yellow Cab and Yellow Manufacturing stocks were brought on to Manhattan and listed on the Manhattan exchanges, many expected to see a further rise in price. Wall Street, however, was not only unenthusiastic, but downright rude and subjected them to a severe drubbing.

Now Mr. Hertz abjures all this: "I have had a bitter lesson. I was pitch-forked into the stockmarket; now I am going to pitch myself out of it. ... I have done nothing for the last six months but worry over the stockmarket action of our securities. I had an eye glued to the tape most of the time and missed many a good night's sleep. I am through with this forever. . . . Surplus earnings from now on are go- ing to be ploughed back into the company."

Mr. Hertz's own holdings of his stocks are now greater than they were a year ago.