New-York tribune., 1909-11-07
VULCAN FACTS
By JOHN q. WILSON

IN the New YORK TRIBUNE Ias,
Sunday and in other represen,,-
tive journals, like The Philadel-
phia INQUIRER. The Hartford Posr
The New Haven PALLADIUM and
The New YORK HERALD, / went IN
some detail into analyses of the 6nan-
cial affairs of the Vulcan DEFINING
Company. | showed from Official
statements that the Company was
earning upon its preferred stock nor
merely the 7 per cent. dividend to
which ii is entitled but in addition
over 7 per cent upon the Companv's
common stock / made clear the
fact that stock so situated Tits earn
ings aggressively upon a rising
scale) was well worth more than its
face value. Vulcan preferred was
then selling at S. AT the end Of
this week it is still selling at 85.
Meanwhile it has been above 90. But
at the advanced price 1T WAS MET
WITH A BEAR BULLETIN OFFICIALLY
ISSUED BY THE CORPORATION ITSELF
and in response to this official outgiv-
ing this stock has lost the advance
from last week, till at the end of this
week it is stationary at where it
started.
/ avn disposed to consider, diScxss
and chaYacteTize this Official an
noHHcemeHt-G statement carefully
prepared and 1Vith deliberations ut
tered BY the President, Vice-Prss-
dent, and General Manager or the
C0mPdny-iH aVlich IL is set forth
that the C0mPaHys directors haze
the fOIIO1ITHg complaints:
THAT stockholders haze
been iH0ited to transfer
the stock they OapH into
their O1VH names.
2-Thdt stockholders haze
been advised to obtain
copies of the last GAHaI
report;
81 nat stockholders haze
presumed to apply for an
official copy OF the list OF
shareholders.
Such complaints, such protests.
such contempt of the ordinary
rights that belong to stockholders
are almost inconceivable. They
cannot stand. The courts, con-
servators of investment interests,
are bound to intervene. And
(though personally wholly inds-
pendent of such procedure) I am
advised that the courts are to be
forthwith appealed to.
The President, the Vice-Presi-
dent, the General Manager OF any
other insiders" do not "own" a
company when a majority of pro-
testing stockholders insist upon
their rights. In this case nothing
out of the ordinary is requested.
What is requested is merely plain,
honest accounting.
lit is not a sufficient answer to
inquiring stockholders that the
information they seek is with
held because officers of the
Company may have sold their
stock-inadvisedly.
The Vulcan DEFINING Company's an
nual statement (fOr the year ending
March 81 last) covered S25OOOO earned.
And what does this represent? After
per cent for the 81 100000 preferred.
equal TO S1O5O0O, there remains .5O.-
00O. equal to ia per cent, for the 81
100000 common.
Take scOr9 Of standard Z per cent.
Preferred InduStrialS-sucb as are bull
warked by this tested cumulative divi-
dend pOlicy-ranging all materially above
par value-and you will find (hOwever
surprising IL may be TO those who have
not heretofore personally made the cal
culation) that in four out of five in
stances VULCAN DEFINING HAN
THE LARGEST PERCENTAGE OF
ANNUAL SURPLUS above its preferred
dividend requirement.
'u4odH DctluuluS per cent. upon
1tS preferred stock and q per cent ad-
ditiOnal upon its common stock are for
the year ending last NIarch-and that
year included half panic year Present
earnings may be fairly relied upon "a
materially in excess OF the record for
March, 1908, TO March. 19O9-a period
which included those trade conditions
that were reflected in % as a market
value for United States Steel common
stock.
Sueh an exhibit once understOOd-will
De appreciated quickest. il may be. BY
tnOse OF speculative disposition. BUT
1T is TO THE INVESTOR THAT THE
FACTS MOST APPEAI-fOr. aside
from any mere grasplng of Immediate
market profit, there is here revealed the
opportunity TO obtain a most exceptional
interest return-and that's the test. nat
urally and properly. from the standpoint
of the investor who is prudent and legit-
1mately calculating. To such observers
the analysis that appeals is this:
Here IS per cent. preferred stock
upon tchich 10 per cent. diridends hare
accumulated. This accumulation tCas the
result Of policies Of protection (minimi--
mo disbursements and staying strong 7,
CASH during the siege Of panic times.
Ihe per cent. tCas earned 10 iCGs
merely officially deemed lrtSe 10 keep re-