The herald-advance. (Milbank, S.D.) 1890-1922, 1910-10-14

of Improvement in revenue, are chief
ly: % A lump sum of 100000
francs, to be paid to the government
IN 1913; CD three per cent. of gross
takfngs to be paid each to the prince;
and (3) 100000 francs a year for the
next four years to be spent on road
making-a mere feabite that will
scarcely have any effect at all.
The burdens imposed on the com
pany in 1898 and since seem at first
sight considerable; but a review of its
history shows that they have hitherto
been borne with ease For the year
1S7l-2-the accounts are made up to
March 81 Of each year and it's dividend
coupons detached in May and Novem.
bert paid dividend Of no more
than $3.50 francs or 61a per cent. on
its nominal capital: the company had
just made fair start after the Fran.
co-Prussian war; but by 1882 the
dividend had been increased to 64
francs or 12.S per cent, and ten years
later still for 1912, it stood at 235
francs, or AZ per cent on the origina!
share.
Dividends Steadily Advancing
| Let us now see how it bore the
heavy burdens imposed upon it in
1898, which we can only do reliably
by observing the advance or setback
of the dividend.
Turning now to the dividend rec
ord for 1S9S-9-the year when the com
| pany pledged itself to pay 10,0OO,00t
francs down and spend /, 100000 francs
on public works. including a theater-
the dividend stood at 275 francs, or s.
per cent. on the original capital.
It was further handicapped, as no,
| ticed above, by the South African war,
and the dividend next year dropped to
220 francs or A per cent, and the year
after that to 210 francs, or AZ per
/ cent, a lowWater mark 1t has since
never touched During the next two
years it stood at 225 francs, or As per
cent, and then began to rise rapidly,
the figures being as follows: 1904,
295 francs, or So per cent, 1oO4-5, 32O
! francs, or GA per cent; 1866, $50
francs, 70 per cent.-highwater mark:
l906-S, two years, 290 francs, 5S per
cent 1908-9 800 francs, 60 per cent. :;
| 1909-1910, 315 francs, GO per cent
There is little doubt that the COM
pany could, had it chosen, have dis
tributed much larger dividends than
those noted of late years. But" says
the Ranque Henry Dupont in a recent
circular referring to this matter, "the
directors have made a point Of entire
ly amcrtising all the expenditures on
improvements and gradually accumula-
ting the sum Of 100000 francs to he
paid 10 the prince in 1913 The series
Of public works prescribed is now al
most completed.
Profit in the Peace Of Europe.
"On the other hand the prolongatiOh
| of the concession made last November
more than compensates for the new
! burdens to be assumed since then.
The ten years added to the conces-
sion reduces the annual sinking fund
appropriation by almost 16O O0O,0 900
francs, While the new annual charges
only mean about 100000 francs"
That this last calculation is pretty
accurate appears from that fact that
three per cent. on 3S,492,OOO francs,
the gross profits for 1909-1O. works out
at 1,154,700 francs; the road to Nice
takes 100000 francs annually for four
years; the annual loss on gas is a
trifle of $4,000 francs and the pension
fund takes 1000 francs, in all 1.479..
/ 76O francs
Deducting this from the amount by
which the sinking fund appropriation
is reduced-namely 100000 francs
positive annual gain to the company
of about 10000 francs is apparent
According to this calcuation the com.
pany has made an excellent bargain
with the prince and the only rock
ahead in the distant future is the in
crease of his percentage from three
to eight in 194S
All that the company has to do is
to await with equanimity the in
creased amount that will surely be
gambled away during period OF In.
creased trade prosperity 1t has nc
serious competitor to fear; Corfu and
Egypt are too far distant to interfere
with it; Spa and Ostend disappeared
in 1903, and the Italian parliament
lately rejected the proposal to legal
ize gambling stations along the Italian
Riviera. If the peace of Europe IL
maintained, the company's profits
must increase. for the gambling in
stinct of mankind is not to be eradi
Gated, and Monte Carlo is the worlds
gaming center.