Arizona republican., 1922-01-26
s. P. OFFERS PLAN
FOR ITS EMPLOYEES
TOPURCHASE STOCK

The Southern Pacific company has
announced a plan for the sale of its
capital stock to its employees. the
plan to become effective after Feb
ruary 1. The stock is to be paid for
in monthly installments, the COM
pany to advance the funds required
to purchase and carry the stock.
The par value of the stock is 500.
The first dividend on such stock
was $3.50, paid in October /, 1906.
The dividends the next year were
increased TO $5.35 q share. since
which time the dividend has been $6
a share.
The market value of the stock has
ranged between a low price of $73.75
a share and $S3.25. At say $50 a
share. the dividend at the present
annual rate of Sc would yield 7is
per cent. The company, however,
neither represents nor guarantees
the future market price nor the
dividend policy.
The stock is not treasury stock.
The company has no stock in its
treasury 1t is all in the hands of
the public so that the company will
have to go into the open market for
all stock which the employees may
company's only purpose is TO in
terest the employees in the system
and provide them with a convenient
and safe means of investment. 1t
is also made plain that no employe
will be Disseminated against be-
cause of his purchase or failure to
purchase stock under this plan.
The plans follows:
/. The Company, upon the re-
quest of an employe, approved by
the head of his department Will
purchase for account of such en-
ploye one or more (but not TO ex-
ceed fifteen) shares of Southern Pa
cific Company's capital stock.
2. Requests for such purchases
must be made in duplicate on the
form provided by the Company for
that purpose and delivered to the
employees immediate employing of
ficer. by whom it shall be trans
mitted without delay, through the
proper channels to the Controller OF
the Company at New York.
g. Upon the day of the receipt
By him of such request, if practic-
able otherwise upon the next busi-
ness day following such receipt, the
Controller will arrange for the
Treasurer to purchase the desired
stock at the market price Tor odd
lots on the New York Stock Ex-
change, and the employe will be
furnished with a statement of the
cost.
a. The Company will advance the
money to pay for the stock and
charge the amount so advanced to
the employe, making no charge,
however, for its services IN connec-
ton with such purchase.
5. The stock so purchased snail
be held by a trustee, or nominee. Sc
lected by the Company, as security
for the advances made in paying
for such stock until such time as
such advances, together with inter-
est on deferred payments at the
rate of six pei, cent. per annum,
are paid in full, after which the
stock will be registered in the en-
ploye's name and a certificate there
for delivered to him. The Company
will pay all stamp taxes required IN
| the transfer of the stock TO the
/ employe.
| 6. All dividends accruing to the
stock so held as security Tor such
advances, payable While the STOCK
is so pledged, shall be paid over
| to the Company by such trustee Col
I nOminee) and credited TO lne dCCouu'
of the employe to apply toward the
repayment of the advances. ana the
/ interest thereon as aforesaie.
Z. In addition to the credlt al
| lowed on account Of DIVIDENDS COL
| lected as set forth in paragraph
| 6, the employe shall pay the Com
pany on account of said advances
and the interest thereon, the sum
of five dollars ($5) per month iol
/ each share of stock purchased, salo
| payments to be deducted from pay
roll for the first half of the month
If stock is purchased on a request
approved by the head of the de-
partment on or before the 10Th ol
/ the month the first payment shal
| be deducted from the payroll iol
/ the first half of that month.
/ the purchase is made on reques'
! so approved after the 18th of tins
month the first payment shall DC
/ deducted from the payroll Tor tnt
! first half of the succeeding month
/ Such monthly, deductions shall con-
| tinue until the aggregate amount
( thereof. together with the dividends