Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-05-12
Twenty Dollars Per Share by
Washington Gas Company.
MEETING HELD TODAY
CERTIFICATES OF INDEBTEDNESS
BEARING 6 PER CENT.
These Certificates to Run Twenty
Years, With Option of Payment
In Five Years.

The extra dividend to be paid to the hold
ers of Washington gas stock is $50 per
share. This dividend of 100 per cent Is to
be paid in certificates of Indebtedness bear
ing per cent interest. The certificates
are to be in the form of what are known
as 5-20s; that Is. they will mature In TWEEN
ty years, but can be called in by the COM
pany and paid at any time after five years
from the date Of issue.
As preliminary to the payment of this
dividend the consent of the stockholders Is
first to be secured. A call for meeting OF
the stockholders to take action on this
proposition is to be issued at once. The
meeting is to take place May Il.
This action, as above outlined. was the
result of meeting of the directors of the
company. held today at the office. There
was full attendance, all the members of
the board being present, as follows: John
r. Mclean. Geo. T. Dunlop, R. H. Colds
borough, James w Orme and Mr. Nell
benny of Philadelphia The session was q
prolonged one, lasting until after 2 o'clock.
One Hundred Per Cent.
AS stated above. this dividend of $50 per
share Is 100 per cent on the par value Of
the stock. which is $40 per share. AS there
are 100. 600 shares of stock, the new divi-
dend will result in the distribution among
the STOCKHOLDERS or $2,O0O,0Oo IN Cert1nca teS
bearing per cent interest.
There is now outstanding 5000, 900 in GER
tifcates, so that when the new issue Is
put out the total amount of stock and
certificates of this company will amount
to S5.S0OO0O
1t is expected of course. that the new
certificates paying, they will, per
cent interest, will sell at premium, prob
ably as high as $12O, as at that price
they will be per cent investment. The
stockholders will of these L.
curities at par, and it will no doubt be
considered that the premium Is a part of
the dividend. In that event 1t Is possible
that the dividend will really amount to
$24 per share, $40 in certificates and 81
which will be the proportion of the esti-
mated premium on the certificates to each
share of stock.
One certificate of 500 will be issued on
the basis of every five shares of stock at
the par value of $40 per share.
The Dividend Anticipated.
The general impression In local financial
circles has been for some time past that
the expected extra dividend would amount
to $50 per share.
1t is supposed that is why the stock on
the local exchange sold recently as high as
9ol2. Since that time. however. there has
been a steady decline, and today stock was
sold for $50.
AS is we'll known. the regular annual
dividend paid is 10 per cent, which is at
the rate of 81 per share. On this basis the
stock pays 4 per cent on $50. There Is a
good deal of speculation as to what will
now be the selling price of the stock.
Dividends in the Past.
According to statements made by Mr..
Cowherd of Missouri. member of the
House District committee, in a speech in
the House of Representatives, May II. 1902
when the bill authorizing the consolidation
Of the WASHINGTON Gas
Companies. and an increase in the capital
stock to s13. 80. 600, was under considera-
tor. the history of the capitalization of the
Washington Gas Company is as follows:
1t was organized in the year 1S4S with a.
capital of $4,000. of which $42, 800 was paid
in and $500 was distributed to the stock
holders. Between 1S49 and 1866 Congress
twice authorized an increase in the capital
stock, once of S300, 900 and once of $3.50, 900,
making the total $500 900. In 1856 the cap
ital stock was increased to $1,000 600 by
dividing 100000 in new stock pro rata
among the stockholders. In 1872 Congress
granted a further increase to $1,000, 600.
Under the terms of the law the extra mill
lion in stock was required to be paid in
cash.
But Mr.. Cowherd said that in 1874 the
company declared an extra dividend of 80
per cent and another similar dividend in
1876, and that the officers of the company
admitted before Senate investigating COM
mittee that these two extra dividends of 80
per cent each had come from the proceeds
of the sale of the S1,OOOOOO of the new
issue of stock
In 1887 the company issued 5000. 900 in GER
tificates of indebtedness, and in 1896 Con-
gress gave authority to issue stock in place
of the certificates, thus making the total
capitalization s2,00o,0OO. as at present.
The Dividends Paid.
In regard to the dividends paid by the
company. Mr.. Cowherd gave the following
information: From 1s4S to 1866 there was
paid each year in cash dividends 7.6 per
cent. and also 100000 in stock dividends,
and on what he called reasonable proof he
believed that $3.50. 900 in addition was paid
In 1867 a 10 per cent dividend was paid, in
1865 the same, in 1869 20 per cent, In 1870 10
per cent. In 1871 10 per cent, in 1872 the
same, in 1873 20 per cent. in 1874 IS per
cent in 1875 % per cent and in 1876 IS per
cent, being an average, Mr. Cowherd said
for 1867 to 1875 of IA per cent, besides the
two extra dividends of so per cent EACH
In 1871 the dividends were 10 per cent in
1873 the same, In 1879 the same in 1880 the
same. in 1881 10 per cent, in 1882 the same
in 1888 a regular dividend of 10 per cent
and an extra dividend of 40 per cent. max
ing. as Mr.. Cowherd said, a total dividend
In that year of $1,000. 900 on q capital of
S2,oOO,OO0; in 1884 10 per cent and In 1855
121a per cent
Mr. Cowherd said that the year 1894 was
the nrst since 1885 that he had record
OF. and then 10 per cent dividend was
paid. In 1885, he added, which Is the last
official report Congress has, the company
admitted paying 30 per cent on its capital
or S2.O0.oOO and 8 per cent on its 5000, 900
In certificate Indebtedness. What is spoken
of as the regular dividend Is 10 per cent
annually on the par value of the stock.
which is $50 per share so that this dividend
amounts to 81 per share