New Britain herald., 1928-12-13
Cash, Stock
 Dividend By CityConnpany
Generous First Anniversary Payment Equal to zo% on Par-More Capital to Be Authorized

The City Company of Hartford, Inc, the security investment company paralleling the City Bank < Trust Company, having the same officers, has declared its initial dividend, the first payment to be equivalent to 20 per cent on the par value. The direc- tors voted payment of 2 per cent, 2 per cent in cash and per cent in stock. At the current market of $110 for stock the stock distribution is equivalent to $5 . share. One new share will be distributed to each 20 held fractional warrants pro rata will be issued. The dividend will b& pay able to stock holders of record Decem- Der 20. The cash didivend will be mailed January 2 and warrants for the stock will be issued on or about January 15. To provide for the stock distribution 1t becomes necessary to increase the authorized capitalization the maximum of $1,000, 900 now being outstanding. Right to issue stock up to $2,OOO ,O00 will be sought. A special meeting of stockholders will be held December 20.
 The stockholders meeting to act on the recommendation to increase the authorized capital will come exactly one year after the date of the initial payment of capital into the company. On December 20, 1927, subscriptions to the amount of $250,00O were re- ceived and because of the heavy over subscription, an additional $250,000 was issued and paid for January 15, this year. An increase of $500,000 was paid in on June 25. All the sub scriptions were paid at par $25, free of premium and without any under writing expense.
 Favorable Rssults ia Year
 A communication to stockholders by President LeRoy w. Campbell sets forth . statement of results as fol- lows:
 "The company had an average paid in capital for the twelve months period of about $725,00O. After de- ducting all expenses other than in. come tax, a net profit has been real- ized of s153,900. This represents ac- tual profits taken and has no refer- ence to securities on hand whose to- tai market value is in excess of cost. The profit is equivalent to 21 per cent on the average capital employed dur ing the year, or 15.39 per cent on the present capital of $1,0O0,000.
 Realizing that this type of invest ment administration is subject to variable results contingent on security market conditions, it was the opinion of directors that the declaration of a dividend should be literally based on the results obtained but, nevertheless, should not be a heavy charge against the operating funds of the company. That accounts for the contemplated division of the dividend into part cash and part stock.
 "Upon approval by stockholders, each share of stock held as of Decem- Der 20, 1928, will entitle the holder to 20 of a share of new stock. Should holder wish to sell his warrants, they will have a cash value of about $4.50 per warrant. In addition, each share of stock as of record December 20, will be entitled to $50 cash divi- dend. In reality this means a cash value equivalent to $5 per share, which is equal to 20 per cent. return on the par value of the stock and about 5H per cent. return on the present market price.
 "For those who may prefer to sell their warrants and thereby convert their entire dividend into cash, the undersigned, acting as committee, will purchase all or any of such war rants at $4.50 per warrant. Such warrants will be used to increase the holdings of the employees, ohicers and directors of the City Bank < Trust Company. Those wishing to adjust rights to even up holdings, will have access to the usual investment house channels.
 "No fractional shares will be is- sued. It requires 20 warrants to ob- tain one full share. These warrants must be converted into stock not later than 8 p .m., February 15, 1929. Con- version will be made by the transfer agent, the City Bank < Trust Co.,, trust department"
 The success of the City Company of Hartford, Inc, has been followed with much interest in the market. The stock reached a high at 135 earlier in the year, and during the past few days there has been activity in the market in anticipation of favor able action just taken. Fred P. Holt is chairman of the board of the City Company of Hartford as well as the City Bank 4 Trust Companv