The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1898-03-02
THE DROP IN ADAMS STOCK.
What the Circular Issued BY the Com

THE DROP IN ADAMS STOCK.
What the Circular Issued By the Com
pany Says.
Adams Express company Stockhold-
ers, of whom there are many in New
Haven, received the information yes
terday that hereafter the dividend on
the stock will be 4 per cent. year
stead of s as hitherto, the company
paying also per cent. on the bonds
issued recently as a gift to stockhold-
ers. In consequence the stock dropped
from 116 to 100. The circular issued by
the company says:
To the Shareholders of the Adams Ex-
press Company:
The managers and the trustees sub
nit this explanation in connection with
the dividend lately declared and the is
sue of bonds to the shareholders.
Taxation in many states has of late
years become so burdensome as to be
out of all proportion to the business
transacted therein or the profits deriv-
able therefrom. The board of manag-
ers have, therefore, determined to re-
duce the amount of surplus assets
| owned by the Adams Express company
and to distribute a portion thereof
among the shareholders by way of
dividend. To that end there has been
set apart and transferred to the Mer-
camille Trust company property equal
| to 500 per share, which will be repre-
sented by bond issued to the share
| holders, bearing interest at the rate OF
| per cent per annum, by semi-annual
| coupons of 2 per cent each, payable In
| March and September, the principa
being payable in gold in fifty years
from March /, $685. These bonds will
be of the denomination of $1,000 and
$500, and will be secured by and repre-
sent a distributive or pro rata interest
in securities and property so transfer
red and assigned to the Mercantile
Trust company, as trustee. The divi
dends on the shares will hereafter be
declared semi-annually, June and De-
cember, and not quarterly. The man
ayers confidently expect to continue
these dividends at the rate of 81 pei
| share per annum, thus with the inter
est payable on the bonds, equaling the
| IS per annum, thus, with the interes
payable on the bonds, equaling the s.
per share per annum heretofore paid
Under the form of the organization
of eur company as an unincorporatet
association or partnership, the share
| holders are personally liable for it:
1 debts. To protect the shareholder!
| against this personal liability, funt
was created forty years ago, which
| was added to and accumulated as thu
1 business of the compny developed ant
| ir,nrQo cad N nrHpr n pnntinnp thii
| necessary protection to shareholder
against personal liability, the deed o
4 trust securing the bonds provides
among other things, that the securi
ties and property held by the Trus
company shall stand as indemnity Il
the shareholders against this persona
liability as well as security for TIL
bonds. The title to the property AM
securities, however, has been absolute
ly transferred and assigned to TIL
Trust company, and whatever surplu
may be ultimately realized thereon viii
be distributed pro rata among the hold
ers of the bonds at maturity.
/ Each shareholder of record on tn
closing of the books February IL, 1895
is entitled to receive at the rate of $40
in bonds for each share standing in hi
name.
1t is desirable that the articles o
association be amended so as to ex
tend the term and duration of the com
pany until after the due date of TIL
bonds, and to authorize the manager
and trustees to purchase shares o
holders desiring to sell at O. price no
exceeding the fair value thereof, an
20 .a;o 1o fr, honofif. N
the company.
A receipt for the scrip Representing
the bonds and consent to sue
amendments are herewith enclosed, AN
these should be signed by stakeholder
of record and promptly returned to tn
treasurer in the enclosed stamped en-
velope.
Scrip will be exchangeable for bond
at the office of the Mercantile Trus
company on and after May 1, 1898, whe
the engraved bonds should be read
for delivery. Scrip for fractione
amounts of bond may be combine
for exchange into such bonds.
The treasurer of the Adams Expires
company will purchase at par for cas-
scrip representing amounts less tina
$500 allotted to any shareholder.
The Mercantile Trust company wi
be notified that any shipments of bond
for shareholders, not in excess of the
distributive shares, will be forwarde
over the lines of this company free
charge.
} BY order of the board of managers.
LEVI G. WEIR, President.
New York, Feb. %, 1898.