New Britain herald., 1928-12-13
Of This Amount 1000 Shares Increase Is Voted Now
20 WARRANTS FOR
 ONE FULL SHARE
2 Per Cent. Cash and 5 Per
 Cent. Stock Dividend Stockholders Act Dec. 20

An increase in the authorized capl- tai of the City company of Hartford, Inc, from $1,0O0,000 to $2,000,000 and a dividend of 2 per cent, includ- ing ? per cent. in cash and per cent. stock dividend, were recommended at a meeting of the directors today. The resolution to amend the charter and to declare the dividend will be acted upon at . special meeting of stock holders on Dec. 20 at 12:30 p. m.
 The plan calls for an authorized capital of $2,O00, 900 by increasing the present 10000 shares of outstanding stock It $25 par to 80,O00 shares of the same par value. Upon approval of this recommendation, the directors will declare . dividend of ' per cent. of which 2 per cent. will be . cash dividend and per cent. a stock divi- dend, both payable to stockholders of record of Dec. 20. Each share of stock will entitle the holder to one twentieth of share of the new stock and warrants will have a cash value of about $4.50, which with the 50-cent cash dividend, will mean cash value equivalent of $5 a share.
 The City Company of Hartford, Inc, a securities corporation, is man. aged by officers of the City Bank and Trust company. Its officers are: Pres ident, LeRoy w. Campbell; vice-presi- dent and counsel, Frank A. Hagarty; treasurer, Alfred W. Jacobs; secre- tary, Clayton c. Chase; assistant treasurer, Ernest s. Warner; and as- sistant treasurer, Allen I. Balch. Fred P. Holt is chairman of the board.
 Letter to SteekhoIdsss
 The company sent the following let ter to stockholders today:
 "The directors have today passed resolution recommending to the stock holders that the charter of the cor poration be amended to provide that the authorized capital stock of the corporation shall be increased from S1,0OO,OOO to $2,0OO,0OO. Upon the approval of this recommendation by the stockholders, the directors will de- clare dividend of 2 per cent. of which per cent. will be a cash divi- dend, and per cent. will be a stock dividend, both payable to stockholders of record December 20, 1928, checks for the cash dividend to be mailed on or about January 2, 1929, and war rants for the stock dividend to be mailed on or about January 15, 1929.
 "On December 20, 1927, this com- pany received payment of $250,0Q0 for its first issue of stock. The stock was heavily oversubscribed and an ad- ditional $25OOOO was issued and paid for on January IS, 1928. June 9, 1928 another increase of $500, ,000 was made. All stock was issued by this company at par value, s25 per share, free of any premium charge or under writing expense.
 "This furnished the company an average paid in capital for the twelve months period of about $725 ,00O. After deducting all expenses other than income tax, . net profit has been realized of $153,900. This represents actual profits taken and has no ref erence 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 s1,0O0,000.
 Realizing that this type of invest ment administration is subject to variable results contingent on security market conditions, it was the opinion of the directors that the declaration of a dividend should be literally based on the results obtained, but, neverthe- less, should not be a heavy charge against the operating funds of the hot $nr kA templated division of the dividend in- to 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 one-twentieth of share of new stock. Should a holder wish to sell his war rants, they will have a cash value of about s4.50 per warrant. In addition, each share of stock, as of record De cember 20, will be entitled to 50 cents cash dividend. In reality this means a cash value equivalent to 8 per share, which is equal to 20 per cent. return on the par value of the stock and about 5A 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 for a committee, will purchase all or any part of such warrants at S4.5O per warrant. Such warrants will be used to increase the holdings of employees, officers and di- rectors of the City Bank & Trust company. Those wishing to adjust rights to even up holdings, will have access to the usual investment house channels.