Omaha daily bee., 1911-04-16


the stockholders, likewise secured by an
other Fat surplus. and, like the first issue.
paying per cent in interest Dividends on
the stock have since been maintained at
p per cent and there has grown up another
surplus OF nearly s25O0O.oo which must
soon he disburssd. Meanwhile the property
actually employed for express purposes has
grown TO but something more than S.
OOooO
RiprninR Melons.
Moreover there is another large fund
slowly but surely accommodating in connec-
ton with the 1901 bond distribution This
1907 gift 20 the shareholders was in the
form Of a bond issue secured by the de-
post Of stocks and bonds Of other corpora
lions formerly owned by the company it.
self The deed Of trust provides that II
the income from these stocks and bonds is
more than enough to pay interest Of per
cent a year on the S2tOODOoO of Adams
Express bonds the surplus shall accrue
and be distributed in 1877 among the holders
OF the Adams Express bonds. AS matter
Of fact there is computed excess income
derived in this way OF $751; $3.50 year,
and by 1917 this will have mounted up to
more than Sc OO0OoO. not allowing for COM
pound interest Here is 80 per cent extra
dividend being nourished along toward ma
turity. If there is any better example OF
being able to eat ones cake and have it
too / have yet to hear of 1t.
The Adams and American are easily the
two most important of the express com
penies and control or have controlled at
various times all the other important COM
panies with the exception OF the Pacific.
The American Company.
Since 1868 the capital of the American
has stood at $lS,OO0OOO, this stock having
been issued in exchange for the shares OF
the original American Express company
and the Merchants Union Express company
under articles of merger and association
dated November %, 1863 The company's
books show that $59O0.0OO was the value
Of the assets taken over at that time.
There was Sls3,Sl9 in cash, t1,26i,O2S in
securities. S2.2O0,3O0 in real estate, less a
mortgage Of $505,143 and Sl,26O.OO0 in equip
ment making a total of 81, 10000. New
stock was sold which realized 5000, 900 in
cash, making total Of s5,3OO0 900 in assets
for the $1s00O,O00 of stock. No new stock
has been issued since 1868 and no further
cash has been paid into the treasury except
from earnings.
From its own balance sheet we find the
company now has less than 100000 In
real property and equipment, all of which
does not represent property employed in
the service, because the item real prop
erty' includes real estate investments
VIII an original investment in cash and
property Of but one-third the par value OF
its capital stock the American Express
company now pays dividends on this stock
OF II per cent a year. and for many years
paid g. and 10 per cent. Moreover, it has
accumulated from its earnings a fund OF
more than S20OOO,00O which is invested in
readily negotiable stocks and bonds the
yearly income on which amounted to ST.
l7SOOO in 1909. Among these securities are
such high grade railroad stocks as Chicago
Northwestern, Northern Pacific New
Haven, New York Central and Union Pa
clfic.
Six years ago the substantial assets of
the American Express company had grown
from {5,300IO00, the amount fixed in the
articles OF association, to six times that
amount. These assets, let me repeat did
not represent new capital put into the
business, for none whatever was put in
but were accumulations Of earnings over
and above funds required to carry on the
business and pay dividends of per cent
upon 900 of stock. Even the associa.
tion's own shareholders failed to. see the
need OF such treasure.
Wells, Fargo a Co.
For many years before his death e. H.
Hartman dominated Wells, Fargo & Co,
long one Of the richest of the express COM
panies, as one man has rarely dominated
any business. But the Hartman estate
was less ambitious than Hartman himself
and early In 1910 the American Express
company acquired large interest in Wells
Fargo Co. Originally known as the
Holiday Overland Mail and Express COM
pany and capitalized at 100000 In 1872
Wells, Fargo & Co. was one of the few
express carriers to take the corporate form.
Its capital stock of S. 100000 is reported by
the directors under oath as having been
fully paid up, and no one can contradict
this assertion, for the company adds: "Ex-
listing records do not show whether paid
in cash, real estate, securities or equip
ment. and no person now living is able to
give these details" The former chairman
OF the Texas railroad commission says only
$4,000 was EVER paid in cash for the S.
10000 stock, but there is no conclusive
evidence on this point.
With S5,OOO,OOO stock whose original value
none living knows. as a starting point
Wells, Fargo & Co. increased its share capt.
tai to S6,25O,0OO in 1873 and to $780, 900 in
1893 This 100000 of new stock was issued
solely for the purpose Of securing a con-
tract from the Southern Pacific railroad
Part OF the stock was sold and the pro-
ceeds given to the Southern Pacific; the
rest was given directly to the railroad com
pany. In neither case was any cash or real
property added to the express company.
On its 100000 OF stock, only a part Of
which represented cash or property, Wells,
Fargo & Co. was able to pay dividends
ranging from to per cent a year from