Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1916-01-10
FIDELITY TO PAY
EXTRA DIVIDEND
OF TEN PER CENT.
President UzaI II. McCarter An
nounces Action of Big Trust
Company's Directors.
DISTRIBUTION TO BE
MADE IN p. 5. STOCK
Company Had Exceptionally
Good Year-Stock Has Ad-
Vanced to $50.

An extra dividend of 10 per cent.
on its capital stock of $4,000. 600 was
declared today by the directors of the
Fidelity Trust Company. 1t is eX-
planned in an announcement that has
been sent out over the signature of
President Uzal II McCarter that this
extra dividend. which is in addition to
the company's regular quarterly dis
tribution of per cent, is to be paid
not in cash, but in stock of the Public
Service Corporation of New Jersey.
Mr.. McCarter's announcement, which
is addressed TO the stockholders of
the Fidelity Trust Company" is as
follows:
1T is my pleasure to announce that
the board of directors of this COM
pany, at a meeting held today, de-
clared an extra dividend of ten per
cent upon the companY's capital
stock. This dividend is payable Sat
urday, January 10, 1916. to stockhold-
ers of record at the close of business
on December 81, 1916. 1t will be paid
in shares of the capital stock of the
Public Service Corporation of New
Jersey at valuation of one hundred
and twenty dollars $120) per share.
I'm declaring this dividend the
board of directors acted IN accordance
with the policy that 1t adopted last
February. when it announced that
in the future any substantial amount
of earnings in excess OF the COM
pany's regular dividend requirements
in any one year would be distributed
to the stockholders, it having been
determined, after mature delibera-
tion, that the existing capitalization
is ample to meet all the institutions S
needs.
Additional Cash Available.
THE payment of this extra divi-
dend in the stock of the Public Ser
vice Corporation of New jersey is
made from this company'S holdings
of that security. In adopting that
plan the directors were actuated by
the wish TO further increase the Ii
quidity of the company's assets and
thus make available additional cash
money for the Institutions daily
business
1t has been known for some time
! IL local and New York financial cir
ces that the Fidelity had had an
exceptionally good year, and for sew
eral weeks there have been persis-
| tent rumors to the effect chat in
! accordance with the policy which
! they announced last February the
/ directors would declare an extra ulNl-
dend That rumor, however, neither
! President McC'arter nor any OF his
associates would discuss, but it new
ertheless gained ground. and the re-
suit was that the company's stock,
which has for years been regarded as
gilt edged, advanced in price from
around $400 per share to $3.50 per
share. It's par value is 800 per share.
Today 450 was bid for the stock, with
none offered anywhere near that
price.
Among financiers, investors and de-
postors not only in this city, but
throughout the country, the Fidelity
is recognized as the largest institu-
ton of its kind in New Jersey. Start
ing tWunty- -eight years ago, with a
capital of $3.50 600, it now has a capi-
tai of SO 900 900, II surplus of $4,000.
600 and undivided profits of 81 10000
1t has resources of more than $685.
100000 and deposits in its banking
and savings departments of more
than $4,000, 900 In addition to those
departments the company Cocducts
trust, bond, title, mortgage and safe
deposit departments. Its offices oc-
cupy the entire ground floor and the
eighth and ninth floors of the main
Prudential building. The company
has nineteen directors. seventeen Of
ficers ana nearly 200 clerks.