The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1901-07-11
Unprecedented Advnnre in Prices
of Its Securities Irnmedi-
ately Results.
STOCK JUMPS $50 PER SHARE.
Regular Quotations Rise From $344
to $500, With $40 Bio on the
Curb-Causcs Assigned
for .Gs Increase.

One Of the most interesting advances in
the prices CT stocks on the local market oc-
CURED yesterday, as a result OF the doub-
ling OF the Mercantile Trust Company's
capital. stock in that institution rising from
SsA to 800 per share. On the curb $40 was
onered for the stock and the rise Is con-
sidered unprecedented in local stock affairs
Festus J. Wade, president Of the COM
panr. ascriSes as reason for the rise the
great gain In the business of the institu-
tion and the prospects for increased busi-
ness in the immediate future. besides the
addition to the surplus caused by doubling
the capital OF the institution.
Bennett Wasserman, stock and bond
broker. said he believed the rise was un-
precedente3 in its way. but that 1t came
from natural causes. Other companies. he
said. show the same tendency to increase
in value when the capital is Increased He
quoted the case OF the Union Trust Com
pany. which increased its capital two
months ago. The price of its stock rose
from SEQ to $50. No trust company, even
in New York, has capital stock of So
100000 he said, as the Mercantile Trust
Company now possesses. and the money
making capacity OF such q concern in
creases greatly with the increase in capital
AT a meeting OF the stockholders of the
Mercantile Trust Company yesterday It was
voted to double the capital stock of the in
stitution. increasing the amount from 81, $780,
900 to 100000 and to pay dividend Of
Fer cent per month on the stock, instead OF
three-fourths Of per cent as heretofore.
II IL proposed to Issue 1900 shares Of a
par value Of $780, which will be sold for 500
each. the extra 500 per share to go into
the surplus fund. The sale Of this additional
stock will give the company capital of
5000 900 ana surplus of Sc. COG, 900. and will
make It the largest financial company in
point Of capital and surplus in the United
States west OK the Allegheny Mountains
When the Mercantile Trust Company was
organized In November, 1883. II Incorporated
with an authorised capital of 1901 600. At
the date OF organization. It sold but $500
shares Of the capital stock, for which was
paid SD per share. On January last, the
directors decided to sell an additional 1900
shares for $26o per share. every share of
which was taken by the original stockhold-
ers. On July 8 1t was decided to sell the re-
mainder Of the capital stock authorized to
Wit. 15,0eo shares. 30 that the full amount
OF the capital stock authorized would be is
sued. Tho price placed upon the stock by
The Board of Directors was 500 per share,
payable ~ follows: Twenty five per cent
20 per cent February /, lso2 and s per cent
June :. 1862. Although only Is 900 shares of
the stock were authorized to be sold 26,00o
shares were Immediately underwritten. The
stock was then offered to the stockholders,
giving each stockholder the right to buy
an additional share for every share that be
held on July .. As a result, practically
every stockholder that is IN the city called
at the once OF the company and signed
for the new stock. so that the underwriters;
wiz get little. II any. Of the new gtock
Other trust companies which have auuhied
their capitaal stock within the last eigh-
teen months are the Lincoln Trust Cora-'
panZ. the Union Trust, the Mississippi Wall
ley Trust and the St Louis Trust Company,
while the Missouri Trust COMPANY has IN
creased its stock several times. The advent
OF the Commonwealth Trust Company early
IN the year II m indication Of the field that
this city affords for such companies.