The comet. (Johnson City, Tenn.) 1884-1916, 1892-12-22
by the Courts in Hoffman vs.. Ware

by the Courts in Hoffman vs. Ware
housing Company.
"It so happened that suhstqu nt'y
became President of the Company
and had to Join in working un Ter it
myself.
"How satisfactory it proved is, per-
haps, best shown by the facts that,
whereas the Company had heretofore
steadily defaulted in its devidends, it
has since not only never failed to pay
at least per cent on its preferred
stock then issued, but is now paying
IA per cent on both it and the ordin-
AIRY stock, both classes selling on a
parity, and in the naighborhood Of
$40 per share of $50 par value, or
$940 for a stock Of the par of that of
this Company.
"Of course, these results have not
been reached without hard work, care
ful management, and good fortune,
But it is not too much to assume from
the fact that they have resulted at all
that the plans resorted 10 is not defec-
tive.
al have no hesitation in saying that
the prospects when first became as
ISOLATED with it were far less inviting
than those of this Company, as pre-
sented by you to me now.
] THE PLAN OF DECENTRALIZATION.
"The plan therefore, which l pres,
ent, and urgently request that you au-
thorize at this, the very first meeting
at which | take part, in order that our
stockholder' may know that we have
promptly and earnestly taken up the
wor kof building up their property, is
shortly, this:
"That we may conserve our present
investments and at the same time Sc
cure a ready capital that will enable
us to conduct our business and enjoy
the highest credit. / recommend that,
without impairiug our valuable char
tered right of making the issue OF this
or the common stock larger if we
should find it for the best interests OF
our stockholders, we now issue $4,000.
600 of preferred stock on the terms
that, in addition to have full voting
power, its holders shall be entitled
out of each years earnings to receive
6 per cent. dividends before the ordin-
ary stock receives anything; and that,
after like amount shall have been
earned and paid, in any given year,
upon the common stock, then any fur
ther dividends shall be at the same
rate upon both but that, to prevent
the confusion of having two clases Of
stock, unnecessarily, the company
shall have the right to redeem the pre-.
ferred, stock, by exchanging for it
share for share, of the common stock
or pangs par for it, as the owner may
elect, whenever it is shown that the
entire capital OF the company is un-
impaired, and that it has both earned
and paid two consecutive dividends al
rate not below 7 per cent. on both
stocks.
"By that time there will be, as haf
been proved by the case of the Ware
housing Company, practically no diff
} ference in the value of the stocks, botf
bringing an equal premium.
+" Finally, that as the privilege o
, subscribing to 6 per cent. stock
which will have at the very worst, two
or more dollars of capital back Of it tt
) earn interest on one, will, no boubt, bI
} valuable, / recommend that we frs
: offer to our own stockholders the righ
, to take at least two shares of preferred
at par for every OF common now helC
a by them F.; and should they wish more
} because of the fact that the Compan,
cannot take the allotment on its treas
: ury stock, suggest that each stock
e holder subscribe for the full amour
| he desires, and thatany surplus abov
| the two shares for FIVE he distribute
: between them before it is offered t
/, any ne els, IL proportion TO tn
Y amounts which they may have res
g pectively subscribed for
o "a moments consideration will COZ
vince you OF the value OF such stock
S and | am, therefore, satisfied that an
s other method of sale would be unfai
= to existing stockholders.
"This is nodoubt sufficient matte
= for disposal at q single meeting hut
a feel that ! shall be pardoned for &C
! ding that have not asked for capita
4 mereIy that may have it idle; bu
e on the contrary, aveincantempatio
'e M almost completed plan for the bus
n ness ot the Company, which | hol
d shortly to submit fr ynur own al
o nrnyAl and which. ! am sAli.lied ca