The Washington times., 1930-07-07
BIG EXCHANGE
LISTING TO
Be MADE:
Speculative Feature in the
Additional Participation Of
Net Earnings Is Noted
BY w. S. COUSINS
Financial Editor, International News
Service


the simultaneous offering in all
sections of the country of an is
sue of 100000 shares of class
AT per cent cumulative preferred
stock of Hearst Consolidated Pub
licationS, Inc, at $25 a share.
In addition to returning the
investor a yield of 7 per cent,
the stock carries with it a highly
attractive speculative feature in
the additional participation up
to 10 per cent Of the net earn
ingS of the new corporation. Mar
reliability will be facilitated by
the listing of the stock, when
issued, on three of the important
exchanges of the country. The
offering marks a departure in the
business policies of William RAN
dolph Hearst. who, after a sue
cessful record of ~ years in the
publishing industry, opens the
door for public and employe par
ticipation in the earnings of the
profitable enterprises he has
created.
Recently Organized
Hearst Consolidated Publica.
tions. Inc. the vehicle through
which the investment referred to
is to be brought directly to the
investing public. was recently or
ganiZed to acquire II newspapers
of nationwide prominence and
highest standing, with combined
daily and Sunday circulation of
approximately ten million copies.
The gross revenue from the
operation of these newspapers
in 1929 was $85,273,739; net pro-
fit before depreciation. interest
and taxes $18, ,140,983 and net in
come $12,854,626, equivalent to
3.67 times the dividend require
ments on the preferred stock.
The newspapers included in
this group are among the leaders
in their class in the most i'm
pcrtant centers of population in
the world. The New York Even
ing Journal, with a daily circula-
ton of $4,000 copies, is. con-
ceded to be the most widely
circulated afternoon paper in
America. The Chicago Evening
American, Pittsburgh Sun-Tele-
graph, Detroit Times, San Fran
cisco Examiner and Call-Bulle
tin, Oakland Post-Enquirer, Los
Angeles Examiner and Evening
Herald, and Seattle Post-Intelli-
gencer are titles familiar to
newspaper readers in their re-
spective cities and recognized
mediums of advertising for pro-
greSsive business concerns. The
American Weekly has attained a
circulation of more than five-and
a-half million copies a week.
Systems Studied
After a thorough and ex-
haustive study of the various
plans of enploye and customer
ownership in operation in this
country and in Europe. William
Randolph Hearst has endeavored
to incorporate into Hearst Con-
solidated Publications. Inc. the
best elements of them all, realiz-
ing in that policy a valuable asset
in the broader financial interests
of both patrons and employees of
his various enterprises.
Hearst Consolidated Publica-
tions, Inc. will be capitalized at
500, 100000 All of the 100000
shares of common stock will be
issued to the star holding cor
poration, in consideration for the
transfer of important publishing
properties. A total of $4,000. 900
preferred stock class a will be
sold to the public. and of this
amount $1O,000,000, or 100000
shares, will be reserved for the
officers and employees of the
Hearst enterprises. To encour-
age and to facilitate subscription
to this block of stock, Mr.. Hearst
has made a special concession to
employees permitting purchase of
the stock on the partial payment
plan.
Directors. Listed
Directors of the new corpora
ton are William Randolph Hearst,
George Hearst. William Randolph
Hearst, jr., John Francis .Ney-
Ian, Edward H. Clark, Arthur
Brisbane, David E. Town.
Based upon the successful opera
tion of an expanding enterprise
entering close to the daily activi-
ties of 12O,00O,OO0 American peo-
pie, as we'll as the inhabitants of
other strategic sections of the
civilized world; backed by the sue
cesSful record of one Of the
worlds most successful money
makers in the publishing field and
embracing group of valuable
properties equipped with the
finest in printing and publishing
mechanism, Hearst Consolidated
Publications. inc, per cent PIE
ferred stock offers the American
investor a valuable equity in a
profitable industrial venture, with
an income yield of from Z to 10
per cent on his investment.
Stock subscriptions are being
handled through National City
Company. Bank of Italy. Crocker
First National Bank of San Fran,
cisco and Anglo and Paris Ma.
tional Bank of San Francisco. also