The Savannah morning news., 1904-08-03
INCOME BONDS
EARN DIVIDENDS
FINE SHOWING OF CENTRAL.
SECONDS GET PER CENT, PARTI-
CIPATING FOR THE FIRST TIME.

BY Declaring Both Dividends the
Road Practically Assures Per
Cent. in Future on the First In
come BOnds-TOtnI of $34OOOO for
Distribution Among Holders of
Two Classes of Sccurities-AnnuaI
Report viii show Increased Earn
inEs and Decreased Expenditures.
BY declaring a dividend OF per
cent. on the first income bonds and
a dividend of 2 per cent. on the second
income bonds. the directors of the
Central of Georgia yesterday told the
story of the unequalled prosperity of
the road for the year ending June 80,
1904.
OF the first income bonds there are
100000 worth outstanding, and on
these there will be a dividend of $780,
OOO Of the second income bonds there
are $1,000. 900 worth, making a dividend
of $4,000. According to the terms un-
der which these bonds were issued
they are to bear per cent. interest
when earned, payable Oct. 1.
First Dividend on ends.
This is the first time a dividend has
ever been declared on the second in
come bonds, which were issued in
1895 While the announcement had
been discounted in advance TO very
large extent, to-day there will be quite
an advance in the first income bonds,
it is believed and a more moderate
increase in the seconds. The action
yesterday practically assures a div
idend of per cent. next year. This,
coupled with the fact that for the
year ending June 80, 1902, there was
a dividend of per cent. declared on
the first income bonds, had demon
strated the ability of the road to pay
the full interest on this class of bond
ed indebtedness.
Yesterdays quotations for the firsts
in New York were at so. gain of u
over the day previous. Based on the
selling price, the dividend of per
cent. on the face value was therefore
equivalent to a real dividend of about
Ga per cent. On the seconds the diVi-
dend on a basis of each dollars in
vestment was about 4A per cent.
Net Earnings Increased.
At the meeting of the board of di-
rectors the annual report was submit
ted, showing both an increase in gross
receipts and a decrease in eXpendi-
lures. AS a result there was quite a
material increase in net earnings, as
evidenced by the decision to declare
a dividend on a class of Indebtedness
never heretofore reaching that distinc-
ton. There yet remains the third in
come bonds, with a face value of $4,
100000. Whenever there is something
left from the net earnings after pay
ing the per cent. on the tirsts and
seconds. this last class will be made
dividend producer.
Many Bonds Held Here.
While the flrsts and seconds are
somewhat widely distributed, many of
them are held in savannah and more
in other parts of Georgia, for the
Central has been the pride of the state
ever since it was first built, even
though some years no dividends were
paid on the income bonds at all. In
many cases the loyalty of the holders
prevented their sale, and now they are
reaping the fruits of their policy.
Besides those held here and in Geor-
gia, many are held in New York by in
dividuals and by the companies seek
ing investments.
President Hanson Says Its Good.
In speaking of the splendid showing
made by the road, Maj. J. f. Han
son, president of the Central of Geor
gia, said:
LAS can be seen, the earnings of the
road were greater than ever before
participated before in dividends. The
property is in fine shape l am glad to
state.
THE annual report has not yet been
printed, and when this is done. it will
be given out The directors were
pleased with the showing made"
The following members of the board
of directors We're present at the meet
ing yesterday afternoon: Maj. ]. r.
Hanson, president; Col. Alexander r.
Lawton first vice president; w. c.
Bradley, Columbus j. w. English
Jacques. Macon; Jos. Hull and George
j. Mills, Savannah; Ross c. Smith,
Birmingham; u. b. Harold Ameri-
Gus.
Effect on Market.
In speaking of the probable effect of
the dividends on the market, members
of the firm of Demere & Hammond,
brokers, said:
I'VE anticipate that trading will be
brisk tomorrow in both classes Of Sc
curities. There will be a slight ad-
vance in the seconds, and a larger one
in the firsts.
This will be due to the fact that bv
declaring a dividend on the seconds the
ability of the road to earn the full 5
per cent. on the first has been shown
conclusively, so that investors are sure
of receiving 3 per cent. on the firsts
again next year, and in all probable
ity for many years to CONS
Many of the Centrars bonds are
held in Savannah"
The same gentlemen thought the Of
ficers and directors of the road were to
be congratulated on the secrecy that
had been maintained as to the prob
able dividends. both in New York
and elsewhere, as this kept the market
steady. As illustrating this 1t was
stated that Yesterday in New Yorlr O
following sales of these securities had
been made: First incomes. 5000 at so;
second incomes 5000 at 4215, 10000 at
42A and 5000 at 42s, third incomes,
5000 at 261a.