The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1906-10-05
Pullman Cars Are Shown to Be
3 Bonanza.
Stockholders Profit 243 I-2 Per
Cent in Eight Years.
80 PER CENT.
approximately "a Millions
Awaiting Distribution.
Gossip and Matters OF Interest
in Railroad Circles.

The Pullman company has a surplus
now of approximately $24, 600, 600. The
last annual report showed So. 151, 946. 1t
is presumed. in the meantime this
amount has been increased by sub
stantially $2,0oO,0O0. Talk of the divis-
ion of this surplus, which is equal to,
say, % per cent on the outstanding cap
ital, $74, 900, 900, has led to rise Of 30
points in Pullman stock, which has
been selling at around 260. This surplus
has been accumulated in eight years
and the earnings Of the company have
made an unusual record in that per-
iod.
In August. 1898. the then surplus was
capitalized by the declaration of
stock dividend of so per cent and a
cash distribution of 20 per cent. The
capital was then S36, coo 0O0 so that the
stock dividend increased the total to
$54s0o0s000. To show what the holders
Of the $36, 600 outstanding stock in
1898 received then and have received
since IS to disclose the extraordinary
profits In the sleeping car and car man
ufacturing business. The sleeping cars
have returned on an average 10 per cent
of the profits.
received in 1898 81, 200, 600 In cash, being
the extra 20 per cent dividend; they re-
ceived the regular dividends and they
received $18, 600 900 of stock as a bonus.
Since 1898 they have received in divi-
dends 6212 per cent on the par value
of the $50, 900, 600 which they then held.
and they have received 81 per cent in
dividends on the $18,000000 of gift stock.
In cash this has amounted to total Of
$40, $4,000. But this is only a portion
of the profits. The SIS 100000 of stock,
which cost nothing had market value
yesterday of $3.50 per share, so that the
e41-r- ~r~aI7z
$z6, 800 000 In cash, therefore, the mar
ket value of gift stock the total reach
es $87, 100000 in eight years.
Over 243 Per Cent in Eight Years.
Expressed in percentages, the cash
received in the period mentioned has
been equal to 1880 per cent of the prin-
cipal. The market value of the gift
stock has been equal to an additional
/ 1870 per cent, or a total of PAS. 50 per cent
in profits in eight years. This is an
average of 30.43 per cent per annum,
and besides, as indicated, there is now
| in the treasury 30 per cent more These
figures may be summarized in the fol-
From August. 1893 to August. 1906:
Received In extra cash dividend,
R ee Pse ee N regular dividends. 400V00
621h per cent ...a.-.......... SO, $50, 900
Present market value, sls.oOOoe0
gift stock s-.s.-..----..--t Il, S0V,VO0
Total cash and market value. So. $50, 600
| Total per cent in cash received. 1875
stock -. 1900
Total per cent received. 24350
Average per cent.in cash per an
/ mum --.-s.-- 444o
Average per cent in market value
/ gift stock per annum, years.. 16 .
Total average per cent par
annun, years .-...--..--..-.. 30 43
The inventor of the Pullman palace
car had at the time of his death realiz-
ed from his inventive genius and indus
try a large fortune. He left a large
estate to his heirs. The comfort the
sleeping car has conferred has been
great but the rewards have surely been
commensurate.
The difference between the $54, 0o0-
/ 600 owned by Pullman palace car stock
holders and the $74, 900, 600 of stock now
outstanding was issued to the stock
holders of the Wagner Palace Car COM
pany in 1900. At that time also the
name of the company was changed
from Pullman's Palace Car company
to the Pullman company.