New-York tribune., 1920-01-25
directors Pave
Way for a Huge
Crucible Melon
shareholders Asked to Ap.
prove Plan Which Would
Make Possible Payment
of Stock Dividends on
Common

Directors Of the Crucible Steel Com
n.ny Of America have recommended to
..ockholders that the authorized COM
ron stock Of the corporation be in
cyeassd from 25.o00,000 to $4,000 900.
he new stock to be distributed to the
;nrior shareholders from time to time.
\, the board may elect" The addi-
tienal stock recommended to be au-
,horised At q special meeting called for
ysbruary is would enable the company
% declare stock dividends on the com
mon shares sggregating 200 per cent.
Publication yesterday Of the proposal
II the Crucible directors to cut a
luscious melon was followed by SEN
.ational rise in the common stock.
which advanced to a new high price
:sr the year at 22A%, and closed at
e2iA, an advance of 11M points over
-idays las. sale on the Stock Exchange.
On Friday, when rumors were current
the. important developments were i'm.
n,ndng in Crucible's affairs, the stock
gained nearly s points, making a jump
Of nearly is points in the last two days.
In letter TO Crucible stockholders
RS. Wilkinson, chairman of the board,
stated That the directors had consid
cred the advisabiity OF distributing
large cash dividends to the common
stockholders, but had finally determined
70 convert the company's big surplus
into fixed capital. He said that the
proposed capital increase is less than
the actual amount OF surplus belonging
70 the common stock. His letter fol-
lows;
Your company during the last four
years OF large business and good earn
ngs, after paying its preferred divi-
dend, has added to its surplus a large
amount. while no dividends have been
paid until recently on the common
stock. This surplus, under the charter
Of the company, belongs to the common
stock. and may be paid to the common
shareholders from, time to time, as the
board may direct. While ali other
established steel companies during this
period of prosperity we're paying divi-
dends on their common stock. your
management used the earnings belong
ng to the common stock for the pur-
pose Of further extensions and accumu-
atlng further working capital.
The present officers and board Of
directors, after carefully considering
the advisability OF disburslng large
cash dividends to the common stock
holders or keeping the present surplus
in the business, have decided to rec
ommend an increase in the common
capital stock by the amount of $50 ,000,-
COO, which is less than the amount OF
The surplus belonging to the common
stock. ard to issue to the common
stockholders additional shares of com
mon stock from time to time as the
board NAV elect
by this plan the large surplus will
be converted into fixed capital sub
ordinate to the preferred stock, thu.
Increasing the security and value of
The preferred shares and giving to the
COMMON. stockholders additional shares
n leu Of the distribution of the sur
,lus By way Of dividends. This will
trengthen the condition of the com
,any and, in the opinion Of the board
# directors, will be to the advantage
II the preferred and common stock
holders.
"a conservative policy will be adopt
ed in issuing this stock which will be
in line with that previously outlined
by your present officers and directors,
who will see that your interests are
guarded accordingly"
For the purposes OF the special
meeting to be held on February IS il
was announced that the company's
books Will close February 6 and reopen
February II.