The Washington times., 1905-12-27
CRAP HOPHONE COMPANY
TO ISSUE MORE STOCK
Announcement Not Received With Much
Favor by Local Stockholders
and Price Broke.

The circular. which has just come to
hand fro mthe Office of the American
Graphophone Company, Notifying the
stockholders that at the annual meet
ing. to be held on Monday January s.
two propositions will be submitted to
them-one to increase the capital stock
from $1,000 coo to $4,000, 900 by the issue
Of 50,OJ0 shares of the common stock of
u par value of $100 per share. which the
directors will be allowed to dispose OF
at such price below par as they may
be able to secure. and a second propo-
sition to increase the par value from
SO TO 500 per share, is not received
with extravagant favor by stockhold-
ers in this locality.
1t is recalled that but little over one
year ago. or, to be accurate. in June
1904, the capital was increased to 5,OOO,-
COO, and figures were then given show
ing the wonderful success of the COM
pany and the large increase in its busi-
ness, which required large additional
capital to provide for. The annual
statement of September 80. 1904, shows
that the capital stock then issued
amounted TO s2,59S, 400. while that of the
year following showed an increase OF
81, ,251, ,z90 leaving still Si,1501O0 still Unis-
sued, and in the treasury Tor such uses
should be remem bered that statements
! Of the vast increase OF the business
were freely made.
The statement OF September 30, 1905,
also showed a surplus of 81. .027. 1886, and
that the only moneys that might be re-
quired independent of the manufacturing
necessities was approximately S4oJ,V'J
( for coupon notes and debentureS running
to 192S which. however, were converu-
BILE into stock at any time at the option
of the holder and mortgage OF $4,000
on the factory real etSate that had eX-
I iSted for several years.
In three months il would appear that
a necessity haG arisen for this intended
| large increase of the capital, notWlth-
standing the amount of stock remaining
| in the treasury together with the sur
| plus account aggregated over $2,cOO,VVO
/ The dividends paid on the two series Of
stock for the year ending september 81
totaied s171. Ella. of which the preferred
! received at The rate of per cent ana the
common 4 per cent on par
When announcemnt was made on the
Stock Exchange of the proposed condi-
tions OF the circular some vigorous
criticism was heard, and the common
stock Immediately sold down to IS.
while the preferred was promptly fur
nisned at and less, and a strong will
( lingness to supply additional amounts
! had it been possible to have secured
reasonable bid. There were also sew
eral members who did not hesitate to
say that II might De wise 10 Strlhe II
from the list as the course of the
stock for several years past had been
one Of great disappointment TO nearly
/ everyone who had become interested
/ in it.
/ An interesting fact connected with
/ this stock as that although il has regu-
/ larly paid dividends OF Z per cent on
/ the preferred for more than ten years,
during the past four years il has never
| sold as high as its par value
The company was organized in 1857
I with a CAPITAL stock of 1920, 600, and
shortly thereafter the stock sold above
I $50 per share When il was first listed
on the stock exchange it became very
] active. and large transactions were re-
: corded around SIS per share. Later on
the price went as low as $l-00 per share
| and n reorganization of the company
was effected, which again brought the
4 stock into prominence. though it never
reached the high figures of its earlier
| days