The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-12-13
FEDERAL STEEL DIVIDEND.
PER CENT. OS LHE BREEERRED
ron SIX MONTHS DECLIRED.

Dividend on the Common to Re Paid mt
til. Rate of . Per Cent. After the fenr
Close. Iflcnfion of Bylaws AMI
Maybe the Delay Can he Avoided In 1900.
A dividend OF 3 per cent. on tho preferred
stock was declared yesterday by tho directors
OF tho Federal steel Company. The dividend
which Is payable on Jan 20 will make the iuIi
q per cent paid for the year. The transfer
books OF the com pany will close for the divi-
dend on Dec. 20. reopening onsJan. w. Follow
ing the meeting OF the directors President f.
H. Gary made tho following ofiicial state
ment:
Under the law and the provisions OF the
charter. no dividend can be declared on the
common stock until the close OF the calendar
yenr The results OF business up to jan. l..
1000. can bc closely estimated and they are
auch that IL Is the expectation of the directors
M unanimously expressed by all present Mt tho
meeting. to declare dividends on the common
stock az soon after Jan. !. andin such manner
Ms may he legal and In conformity TO the rules
of the Stock Exchange on basis oil per
cent. per annum commencing the second
quarter Of 1Ns'. This can he done after re-
serving to the contingent companies from net
earnings prior to Dec ~. 1892. upward Of
SiWO.OOO."
II was also stated that the directors have
dend meetings the first Tuesday OF each
month IL was learned from another source
that at the meeting Of the directors in January
when the matter OF dividends upon the com
mon stock will come NJ. destination OF "
rsr cent will be made either in the form OF
likely. in the shape Of two dividends. one OF =
prr cent and the other of "a per cent.
The idea would hp both to observe the rules
of the New York Stock Exchange and TO see
Tbe = per cent. dividend would represent the
dividend for the second quarter 81 lSM. the
payment Of which was enjoinnd thnt ni : :, per
cent being for the two remaining quarters
Since the Court complications over the matter
the transfer hooks Of the company have been
closed "a to tho company's common stock.
properly entitled to the dividends shall get
Closing of the WI" books ks" are still entitled to the
onjoined dividend Of - PER cent: Those who
the remaining dividends for the year OF "a per
cent.
nG ,orE 1 taE - about oT
while u per cent. on the preferred stock takes
about 81. lOO.OOO n total OF about Si.sOo.OOo
"pt Of total net earnings for the year oil about
As to the declaration OF dividends upon the
opinion Of the company's officers that technic-
nilva dividend cannot b. declared until January
on, IL bs V asTnpes ,or i% bens prevented
Nv he construction of the New Jersey law by
,unction case Here Is the way tina New Jer-
soy law reads: q,
- The directors ~ every corporation created
under this act shall in Jpnuary in each year.
unless some specific day or day@ for that pur-
pose be- fixed in its charter or bylaws. and in
ihat case on the DAYS 50 fixed after reserving
over and above it, capital stock paid in
ne a working capital for said corporation.
ny tho stockholders. declare n dividend among
III stcc kholers ~ the Who'll" NJ its accumulated
Profits exceeding the amount So reserved aud
nav the same 10 such stockholders on de-
nIand. provided that the CORPORATION NAV in i's
srti1ratc ot incorporation or in its bylaws
Give The directors power 10 fix the amount to
be- reserved n = q working capital
II l. hoped bv the ufiicer~ Of the Federal steel
COMPANY that the New jersey gislRture will.
NJ its winter session. simplify its method for
declaring dividends set forth in the law, and
amend tha law So as to make II loss cumber-
loma. allowing. as IN other states, the decla-
ration Of dividends 10y the directors out OF the
Profits AZ any time. instead OF nccessltating a
wait until the end Of the year.