The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-06-21
FEDERAL Steel INJUNCTION.
Years Dividends on Preferred In Hand he
fore Amy Was Declared on Common.

Years Dividends on Preferred In Hand Be
fore Any Was Declared ON Common.
The news that Walter Il. Kern OF Phiadel.
phis. who holds twenty five shares OF the pre-
ferred stock OF the Federal Steel Company.
which wore transferred to him Oh Juno 9, had
fled at Camden on MCn0ay a bill with Vice
Chancellor Reed asking.the court to restrain
the company from paving any dividend on
the common stock at present. came as sur
prise to Wall street Yesterday. II caused sell
ing Of Federal Steel common. which was weak
as a result. closing at n net decline for the
day OF ~ points.
The Federal Steel Company has q capital
.tock OF S2OO. 100000. divided equally between
preferred and common. The company s.tirec-
tors on Friday last declared a quarterly dv-
dend upon the common stock Of !. Dor cent.
payable on July 20. The Nice-Chanceor
has granted to Nr. kern 4 Temporary inJunc.
TO show cause on July why a permanent In
junction should not be issued restraining the
Gayment OF t any ,n aiyidends Is, IN m the common
year. In his bill Mr.. Kern states that the char
ter OF the company provides that the holders
COVE non. cumulative DIVIDEND S at he rate OF
= per cent; year Tor the fiscal wear beginning
paid in prefcrence to any DIVIDEND on the com
mon stock during this year. lie maintains
not be sd n9 after the ose Of Stq he
year ending Dec, |. 1899, and then out OF the
surplus profits. the existence OF which he SAYS
cannot be ascertained until the end OF the
Wall street, generally inclined Yesterday to
courts decision Would be adverse to Mr. s
Kern. Gossip noted that the action came at
an oppcrtune time for the bears in the stock
On behalf Of the Federal Steel Company 1t
was said thnt the comnany has earned more
for the year. and the amount required to pay
the three unpaid dividends on this stock, has
tons as they mature. Out Of the surplus now
on hand the dividend on tn" eommCn was de-
G SesSe With Ge "a 5TPS1 n
during The rast OF the year was to he used to
pay the dividends on tho common stock as
e, H. Gary, President Of tho Federal Steel
COMPANY. said Yesterday that the clause Of the
yding tor dividends on tho preferred for a
tulI year there shall remain any surplus net
5TSs Of ' 6 ~" m be
The dividends alrandy declared in favor of
the Federal Stee. COMPANY bv It's constiuent
comrancS. together with accumulated inter-
eat on it, surplus. amount t" upward Of S3,T7G,,
3aliRaoof From IN. fHn4 the company paid Arr
the rrecrred stosk am S to oF SH H'G ?n
June 4 Hm II: GHa 54S H,"T4 q
Of !, per cent lon the preferrcd stock. amount
ing to SNS.Dl5 and also set aside as srecia
sPr 5Hs fw Wear OF
cent. each on the preferred stock. ~ .5NT $50
and II so declared Dividend of = per cent on
the common stock
The resolution unanimously adoptel by the
Board ~ Directors Is aS follows
"H,spet. That froN the tuni created rs and from
the dividends declared upon the capital stock ut the
Minnesota Iron 9 .Iulau,, the lilnln,S steel Com.
pAny aud the Elrlu. lrNci AM Eastern halfway
Company, held and owned bg THIS cuurany to-
Reth"r with 'uuula'yi interest If tins c0lAyamy
there be set asil" and held tho sum Of IHf a.
special fund for the paymcut # a dividend 0f "
per cent ON the preferred capital stock uf this com
". y. An IL NItFf nj Nor
1874 aud further dividend ~ ~ per cent on the
prefer, ed capital stock Of this pany, amounting
10 SIuS"l PAYABLE in January, luuu and that srr
i"rd hr nsed for III" payu emf If such dividends aud
for no other purpose.
" Rrioir'd, Further, hat from said fund hr-t
above named, There b" lath q quarterly Dividend Of
le per cert upnn IN. li efyrr. ID capital s'urh ot
ths COMPANY, tt' dag Z" 10, 4. q arcl ana pay all,
july IN. lNn'
Au"Nr uam"t .tn'r h' Io,d lLr u.NI!, nj ~ n, ue
cent tins nh' - lv declared Euou the common
s,pitNi stock Of tins company, PAYABLE July 20
lcHu,' w