The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1882-06-01

you will find that they paid for that
stock the full value as shown by the
books. 1t was worth great deal more,
but that is what they paid.
Now, having bought these 5000 shares,
they issued a confidential circular TO
their shareholders, saying that they had
done this thing and would sell TINS STOCK
which had cost and was worth 300
share, for 800 a share. In other words,
they paid out in the purchase of these
5000 shares of stock, $l,320,OOO, ana
they sold the stock to their shareholders
for $5OOOOO. By that means they dis
tributed 1926, 900 of their surplus profits
to their shareholders without calling 1t
a dividend.
In other words it was a sale by the
PENNSYLVANIA Railroad Company or lts
stock in the Pennsylvania Steel COmpa-
nv to the other shareholders OF the steel
cOmpany for S265 a share, for which the
stockholders paid 800 share, and the
steel company paid out of its treasury
S165 share and made it free gift to
stockholders without calling 1T d1Yl-
dend.
The public would never have had any
knowledge of this operation If 1t had
not happened that the estate of John
Edgar Thompson held 1000 of these
shares of the steel company. TEOmp-
vania Railroad Company, and when he
died he held 1000 of these shares. The
income of his estate was devised to his
widow, and the question submitted to
the court was whether this stock, cost
ing 800 a share, but worth 1865
share, should be added to the principal
as stock division, or be regarded as
income and delivered to Mrs. Thomson.
The facts which have stated are all
hvy A1I,v in hf.1n lin
ion, which | hold in my hand, and which
| shall print in full in the Record, and
were all the result of sworn evidence,
the accounting of the books. The Judge
decided that this purchase and sale of
stock was merely cover for a dividend
of 1926, 1000, and that Mrs. Thompson was
entitled to her share of it as such. Now,
| will either have this read for the edl-
ficatiOn of my friend f,Om Pennsy Vania,
(Alr. Kelley,) or | will print 1t i'll the Re-
cord, as he may prefer
After this was all done and they had
divided % per cent. III cash. in addition
to this dividend of $l65 share, which
of itself amounted to 80 per cent. on the
unpuTchased shares, making the diyi-
dend that year n per cent. instead of 67
per cent. as my friend from Kentucky
[Mr. Carlislel figured it out, what do
you suppose they had left undivided?
After the purchase there remained of
uneXpended profits $2461 ,423,51, with
six months profits to be ascertained and
added. Now, suppose those six months
profits were not less than half million
dollars; but L do not know how much
they ere; and l will not state anything
that | do not know; but the uneXpend-
ed profits, after the magnificent dividend
| have mentioned, were $2461 ,423.51-
over 125 per cent. | will read what the
auditing Judge said:
"The auditing judge is of opinion that
the 344 shares are income to which the
life tenant is entitled, upon payment of
the par value of 500 per share; and sub
ject to such payment, they are awarded
to her accordingly"
Now am not going to be hard upon
my friend from Pennsylvania, and the
reason is this: He spoke of me very
kindly at the outset of his remarks, and
made some references to future pOliti
tical pTeferment which might be in store
for me. l presume he really meant
what he said; do not suppose it was
sarcasm; therefore l feel kindly toward
him, and will impute his denial of my
statements to what it unquestiOnably
was-absolute ignorance of the fact.
If | were to make a mlSStatement in
regard to the iron and steel business,
thereby misleading the House, would
be culpable; it would be on my part an
unpardOnable Offense, for 1 have been
over thirty years in the iron and steel
business, and l know. or ought to know
all about it. When l made that state
ment knew what L was talking about
absolutely, and when the gentleman
from Pennsylvania cOntradicted me
knew he did not know what he was talk
ing about just as absolutely. Laugh
ter. The truth is these gentlemen who
are in the habit OF giving him facts and
figures never cOnfided to him the profits;
he did not know the facts. They only
come to him when they are in trouble,
and never tell him anything of their
prosperity. He is chief mOurner in
their Affections, but is not allowed to
partake of the baked meats"