The Coconino sun., 1925-02-06
CERTIFICATION OF INCOR-
PORATION OF
]. c. PENNEY COMPANY

Continued from Page Six)
days notice by mail to the holders of
record of the first preferred stock to
be redeemed, at One Hundred Five
Dollars ($105) per share and an
amount equal to accumulated divi-
dends to the date of redemption.
Any shares of first preferred stock
purchased by the corporation or call
ed for redemption shall not be reissued
or resold and shall be cancelled.
Article vi
CLASSIFIED COMMON STOCK:
% The classified common stock
of this corporation shall be divided
Into classes; each class shall be desig-
aated by a distinct number and by
name indicating the locality of the
store, to establish, operate or main
tain which, the consideration re-
ccived for the issue of such stock
shall be used. In the event of classi-
fled stock dividend based on the sur
plus of a store being converted into
capital for the use of.on or more
stores, such capital shall be deemed
iSsu anee of stock within the meaning
of this paragraph.
(2) The holder of each class of
classified common stock shall be en-
titled (subjcct to the rights of the
holders of first preferred stock and
in preference to the holders of class
A preferred stock, and of all other
common stock, whether classified or
u-lclassified, to have credited each
year to the book value of their shares
on the books of the corporation the
same proportion of the net profits
earned by the corporation, through
the operation of the store. against
which such class'of classified common
stock shall have been issued, as the
par vaLle Of such classified common
stock bears to the total store capital
in such store They shall also be en-
titled to be credited with their proper
proportion of the income specified in
Article XIV hereof. All dividends.
whether stock or cash, declared and
distributed at any time by the Board
of Directors out of current profits or
accumulated surplus so credited to
the book value of .Sae holders of each
class of classified common stock shall
be Paid only to the holders of such
class OF classified common stock, IN
proportion to their holdings in such
class. The classified common. stock
holders shall be entitled to no other
or further dividend. The term store
capitaI' as used in these Articles
means the consideration, or Tin the
case of a stock dividend the amount
of surplus converted into eapitaD, for
which the classified common stock of
any store shall have been issued, not
however, in excess of it's par value,
plus the amount of the moneys set
apart out OF the general funds of the
corporation for the opening fnainten-
anee and operation of said store. The
terra "operation Of the store" as used
in these Articles shall include any use
incidental to the business of the cor
poratien or of any store thereof to
which the moneys invested in or set
apart for said store, or acquired BY
said. store as surplus, shall be put.
(3) In every case-(A) Where the
store capital in any store has become
impaired through losses, or (B1
Where any store has debts and obll
cations over and above its assets, all
the classified common stock of every
class owned by each stakeholder in
said losing or indebted store, shall BE-
subject to special assessment to re-
store said capital or pay said debts
in the discretion of the Board Of Di-
rectors. In all cases where the Board
Of Directors is unable to collect from
any Classified common steckholder or
stockholders, in such losing or in
debted store, in and by the method
prescribed in this paragraph ~, such
proportion of the amount necessary,
10 restore to par the store capital OF
said store, or to pay the debts and.
obligations of such store, as the par
valne of his or their shares IN such
store bears to the total store capital
then the portion of his or their share
of such assessment which the Board
of Directors is unable to collect, shall
be pro-rated among all the remaining
classified common stockholders IN
such~ store and the general funds OF
the corporation representing the book
value behind the class A preferred
stock and the unclassified common
ste ok, in accordance with their respec-
tive investments of store capital in