The Washington herald., 1912-10-22
nyi. 4. rLeMINe.

The National Savings q Trust Com
pany, one OF the most conservative and
yet aggressive banking companies OF the
city, has DECIDED that its VIII hereafter
pay its shareholderS 10 per cent divi-
dends annually. or s< per cent quar-
ferly. Heretofore the shareholder have
been content with 6 per cent annual
distribution and have permitted the
surplus earnings to go to undivided
profits.
The National Savings & Trust Conn
pany last year earned over q per cent
on its capital stock.
The institution was chartered by Con-
gress January y. 1861. It started pay
ing dividends in 1892, on per cent
basis. the Increase to 8 per cent was
made Immediately thereafter and It has
been the object of the directors and Of
ficials to accommodate an undivided
profits account practically equal to its
capital. before making the dividend In
crease.
The increase in dividend distribution
ives not unexpected but the shareholders
will be pleased to find that It is to be
10 per cent annually.
The National Savings & Trust Com
pany has just planned great building
improvement, as reported exclusively in
The committees interested in securing
a location for the various financial
bodies met at the Union Trust Com
-pany yesterday afternoon. number
eof locations were considered. the COM
mittee made progress but did not reach
a decision. Another meeting will be
held in the near future.
H. D. F." wishes information on the
earnings of the National Metropolitan
Bank during the past year.
From September 1. 1911. to september
T. 1917, the latest figures at hand, the
National Metropolitan Bank earned
s7a,7s4 Its net funds increased from
S5,3so9ls in 1911 to S. foe. 96S In 1872. The
bank earned LIS per cent on its net
funds: 5.09 on capital and surplus and
better than $40 per cent on capital.
These figures do not represent the
actual growth. the steady progress OF
the Metropolitan to a sound and sue
cessful foundation. During the last
year it has been necessary to write on
some old accounts this done the bank Is
now clear and free from incumbus and
ready to go on under the most careful,
Yet aggressive management to future
successes.
H. d. F." also submits this prob
lem:
Il would also like to inquire about
the prospects of the Capital Traction
Company as an improving investment.
This company increased its dividend
rate from to 5 per cent and then to
per cent several years ago. Since
then the distribution has not been in
creased. 1t would seem as IL the vari-
Gus extensions made in the past few
years should more than pay the inter-
est on the bonds issued to pay for their
cost and Furthermore the passenger re-
ceipts on the road as a whole must have
shown a steady increase each year, but
nothing has been reflected in the way
of an increase in dividends"
The writer is unacquainted with III.
D. F. 1t Is a fact that the Capital
Traction Company has been putting Its
property in the best possible condition
that It has been generous in writing Off
to the Improvement of the property, and
has attended to its financing for years
to come.
Its prospects are good but the chances
for any increase in the matter of divi-
dend distribution in the immediate fu-
ture are not good.
The third question submitted by III.
D. F. will be answered tomorrow
morning in this column.
There are two. distinct manner oil
proxies. One the proxy that repre-
sents the confidence of the shareholder
in the officers of the company in which
he is Interested. that honors the good
and faithful servant with reelection for
the good work that he has performed
The other Is the baneful proxy-the
one that serves to perpetuate in ofhce
certain interests that have little or nc
personal interest in the corporation over
which they preside-that serves to keeI
the officers in group and the fa'
salaries equally closely corraled.
The bsneful proxy is largely the re-
suit of habit; of Indifference of inability
of the shareholder to attend the annua
meeting and thereby know exactly wha'
is going on.
There are men who are paid salaries
to conduct certain lines Of corporate
activity who have comparatively little
interest financially in the properties. fre-
Quently no interest whatever. and thos'
men are perpetuated in Office by the
overwhelming proxy votes of large
shareholders who understand the svaiut
of the man for the position.
In the early days stockholders voted