Clinch Valley news. [volume] (Jeffersonville, Va.) 18??-2019, 1890-03-07
A NOTED BANK.
HIS STOCK IS ALL OWNED. EY
OLD NEW YORK FAMILIES.
Although the Par Value Of the Stock
Is 500. Each Share is Worth
$a5eo-It Pays Yearly Div,-. ,
l dends OF $50 Per Ccpt.

'ititl lIC- : 7 ~ ie 49,. ..u-
Every now and then there is an an
nouncement in the newspapers of the sale
of II few shares of the Chemical Bank
stock. In the Inst three years there have
been about half Il dozen of, these sales,
and they have been OF especial interest
to very rich men always on the alert to
invest their surplus wealth. To the poor
man, even if he Slances at the announce
incnts of the sales, and the prices realized
for the stock of the bank, they are of no
particular interest, except to inocuatc his
fancy with the possibility that ut some
time in the dim future he too may be able
to be numbered among the owners of
Chemical stock.
Three years ago the shares of the bank
sold in the neighbprhood of $4,000 share.
~ few days ago ten shares were sold ut auc-
ton Oh the Real Estate Exchange for $3.50
snare. Starting first with the state
mcnt that the shares have Il par value of
500 each, jus. as most other banking
and railroad securities have, why is that
people pay $3.50 for a piece of litho.
graphed paper which says on its face that
it is worth only 500? In the words of
II
ing of the sale of ten shares mt 5456) n
share, lis this not altogether IL fancy
price, or, perhaps, a fashionable price for
the stock! II so, why will people pay
so much for it? Is it because they think
it is smart to own little, and they like
to tell their friends that they do? II not
fancy price, tell me why it is worth 50
much; is it because OF the big surplus, or
because of the dividends, or WHAT"
This is pretty good line of questions.
and yet it is II marvclously Interesting
fact that every one of them CONVEYS by
inference the correct explanation Of the
causes for the high price for the shares.
II is true that if there is any fashion in
financial circles it is considered the cor
rect thing to- own few shares of
Chemical stock Wel-known and
vcracious authorities are responsible for
this statement, rs they also are for the
additional one that "many men like to
die with ten shares or so of Chemical in
their strong box" The shares arc
Autographed on no better paper than
that used for the shares of other banks.
The Chemical building on Broadway lisa
modest structure. OF the thousands who
pass 1t every dry, comparatively few
know that it is there Save for the
occasional announcements OF Il sale of a
few shares OF the stock little is heard of
the bank. The officers of the bank seem
also to carry the modcsty or, to speak
more properly in II financial sense, the
conservatism of the institution into their
daily lives. On a snap-gucss not ten per
of Al.
Stock Exchange could tell the name of
the President, and possibly not half of
that number could tell that the admins.
tration of the banks affairs is conducted
by but five directors Yet when tinancicrs
know that few shares Of the banks
stock are advertised for sale they flock
to the scene and bid with nlacrity and
vigor.
1t should be explained that these sales
only occtr when the affairs Of the aforc-
said man who wanted to die with few
shares of the stock in his strong box
are In the process of settlement
by the executors of the will or
the heirs themselves. There arc onl7
5000 of the shares, which, ut par value
of 800 share, make the capital stock
va liz ohhh SOou,ooI nc SnIrCS are
held by I'D New York families. Yet
with its sr,all capital stock. the last re.
port Of the bank S officials to tho proper
authorities shows that in round numbers
it has sd, 400 in its possession This
vast amount is made up of the surplus or
undivided profits, amounting to So ,O56,-
600, the capital stock of $500, 900. and
the deposits of patrons amounting to
S24, 76S, 700. As the bank is rcauircd
by the National Banking act to keep in
its vaults twenty-five per cent. OF its
deposits, the total available funds of the
bank are S24 1872, 525 This vast amount
in parcels is lent to bankers, brokers,
merchants, and manufacturers on sound
collateral. 1t is turned over and over
many times year and at all sorts of
rates of interest. This is done so sue
ccssfully that the bank now pays out in
dividends $3.50, 900 year in twenty live
per cent. payments every two months. or
total Of $50 per cent. year. This.
OF course. is on the par value of the
stock, and thus ii is clearly demonstrated
that on the ten shares which were sold
the other day at S456O II share, and
which cost the purchaser S45, $50, and
which represent par value of $1,000,
the annual income is $500. The prob
lem as to the net income on the actual
value OF the stock at S4560 share IS
then easily demonstrated to be about ). 81
per cent. ycar.-Ms,a Yori' Sun.