The Hawaiian gazette., 1918-08-13
AMERICAN Factors
TO PAY AILEAST
TWELVE. PERCENT
Announcement WIN Soon Be Made
In Additional Prospectus
Which win Be Issued
INCREASE DEPENDS ON
RATES OF TAXATION
New Executive Orders Apply Es-
peciaIIy To Conditions Which
Were Met Here


Dividend payments Of at least one
percent month commencing with Oct.
ober are embraced in the plans Of
American Factors, Limited. This will
be told in a further prospectus that
Is soon to be issued.
There have been numbers Of requests
for information on the probable divi-
dends which American Factors certif.
rates will pay and the directors and
trustees believe the investing public
should be given all possible inform alton
on the subject and will. therefore, make
the announc ement in the prospectus Of
payments Of at least one percent a
month commencing with October. This
would make the stock pay eight percent
on the basis upon which subscriptions
for certificates are being received
Depends On Taxes
How much more than one percent n
month the certificates can pay will de-
pend chiefly on the new revenue law.
The President and Secretary McAdoo
are both reported to strongly favor an
eighty percent fat tax on excess war
profits. As told in The Advertiser yes
erday the pre'war profits Of Hnckfeld u
Company were $650,OOO, which would
he thirteen percent year on the capt
taliZntiOn Of the new company 49,
BHBed on the capitalization Of Ameri-
con Factors, Limited the earnings and
dividends OF Ha"kfeld & Company offer
interesting possibilities. In Igl7 earn
inRS were more than thirty-one percent
and dividends more than nineteen per-
ent: in 1915 earnings were nearly
thirty percent and dividends nearly
fourteen and one half percent; in 1915
eornings were nearly seventeen percent
and dividends about nine aud half
percent. For the three years the aver
age earnings were twenty seven percent.
Even with an eighty percent fat, tax
on excess profits and on the average
earnings for the past three years Z the
new company would presumably be able
to pay as high as seventeen percent.
If the tax be smaller, the company
could pay Troportionntsly l"rgsr diyi.
! hendR. = ',HTu,'
Ends All Disputes ...,.....,I ..
Points that come up in connection
with Hackfeld & Company, acts Of the
custodian (which Rome were inclined TO
consider nnwarranted and unauthorized,
are specifically ,included in additional
regulations prescribed by the. President
for the alieh property custodian. ono
Of these points was the right to vote
the enemy stock for sale Of the going
business and another was the right 10
vote for dissolution, :, It was held by
some that since the majority of the
stock was held by the custodian his vote
was equivalent to q sale of the business.
Voting Of Stock y r..
Relative to the right to vote the
stock the new regulations provide: "to
vote in person or by proxy shares Of
stock or other beneficial interests in
corporations, unincorporated hssociati-
ons, companies. or trusts upon all
questions at all times and upon all
matters upon which any owner of such
stock or other beneficial interest shall
have the right to vote including the
power of authority to vote for or ag.
ainst and to take part in anv sale, dis
solution, consolidation, amalgamation,
or reorganization of any sort, of any
such corporation, unincorporated asso-
citation, company or trust nr Of it's assets
or any part thereof, and to exercise anv
rights or privileges that may be or be-
come appurtenant to the ownership of
~""h stock or other beneficial interests
with like force and effect and under
like circumstances in all respects as
though the absolute owner thereof" "
Sale Of Business
The right to sell a going business is
provided in the following paragraph:
"The Alien Property Custodian shall
have full power and discretion with re.
spect to property to be sold, and may
sell any property or properties AS an
entirely or in such groups or parcels
and at such time OF times rs he shall
determine, and without reference to the
nrPvious enemy or ally nf "ncmy owner.
ship thereof. Whenever any such pro,
rertv shall he used or employed in the
| conduct or other operation of any mine,
plant. factory. railroad. or other trans
pOrtatiOn facility, mercantile establish
ment, or any sort of going business or
undertaking. the Alien Property Custo.
dian may sell such property as d going
business or undertaking and may. in
rlude not only the tangible property,
hut anv and all patents, trademarks,
trade names, good will, and other in
tangible ricAts and assets; and any
number of such going businesses or
undertakings may be sold together as
above specified" 'H.