New-York tribune., 1906-06-30
ASK LARGER DIVIDENDS
IRE COMPANIES JOIN. |
Wells Fargo Makes Increase
United States Also Besiesed.

Among the interests which have joined in the
movement 20 get larger dividend return from
their holdings OF Wells Fargo Express Company
stock Il is learned. some of the fire insur-
snoe companies, which are naturally aesirous
OF realizing the largest possible amounts on their
investments. IN view Of the heavy losses which
they sustained IN the San Francisco con-
fagration Both fire and life insurance COM
panies extensive holders OF the stocks of the
great express companies, which have long been
regarded as a safe and attractive Investment
II became known yesterday that a movement
had been started 20 obtain larger dividends from
the United States Express Company as well as
from the Wells Fargo Several weeks ago rep
resenta;ives OF several fire insurance companies
among them the Continental which holds
. 500 shares OF the stock-trust companies and
estates. all stockholders Of the United States
Express Company. called on Senator Thomas c.
Platt. president OF the company, and urged that
the dividend be increased. From 1896 to 1900
inclusive, the annual dividend was per cent; in
1901 il was 3l2 per cent and since then il has
been per cent The company is earning is per
cent year on its Slo.ooo.ooo capital stock and
has q surplus of nearly sl30o0.o00. It is the
only express company paying less than per
cent dividends. and its stock. which has sold as
high as 100. IS quoted al 10 bid and 120
asked.
President Patt's objection TO declaring in
creased dividend was that the company was
erecting skyscraper at Trinity Place and Rec
tor street, which would cost s2.0oOOOO. and that
& was the desire of the management TO pay for
the building. as IL had already paid for the site
out OF current earnings. the alternative being
that some Of the securities in which the surplus
S invested would have TO be sold. The dis
satisfied stockholders. however, threatened TO
appeal 10 the courts and TO the Legislature If
their demands for larger dividends We're refused,
and finally virtual assurance was given them
that the dividend would be increased 10 per
cent. e year.
The directors of Wells Fargo & Co. il was
announced yesterday, have declared semi an
nual dividend of 5 per cent. placing the stock
on 10 per cent basis. The yearly dividend has.
since july. 1902. been per cent. in the form Of
s per cent regular and per cent extra each six
months. The amount Of the increase IS not sat
isfactory 70 the minority stockholders repre-
sented By the Stock Exchange firm OF Walter
Q Stokes & Co, and the effort to have the dly1-
dend raised 10 is per cent, either entirely in
cash or partly in scrip. viii be continued.
The Wells Fargo management has been no
less active than the Stokes interests in the pies
ent contest. One Of the large fire insurance
conpanies IL IS learned. which several weeks
ago agreed TO give 20 the Stokes nc:n a proxy
for The 500 shares OF Wells Fargo stock owned
nv IL received a little later so libe al an o1er
from the management for its holdings mat II
decided 10 sell out Several Of the minor fire in
s1lrance companies however. and al least one
life COMPANY the Manhattan, are understood 10
be cooperating IL the movement Tor n 10 per
cent dividend.