The Washington times., 1930-01-09
REPORT BY WICK
SHOWS SMALL
SHR|NKAGE

NEW YORK, Jan. 9.-The
Wick Financial Corporation, which
was organized late In the spring
OF 1929 by the Wick Chemical
Company, shows in its annual
report as Of December 81 a
shrinkage in its common stock
Of only 80 cents q share from
the par value of $40, despite the
tact that it did not commence
business until June 10 and was
operating less than five months
before the stock market col
1apSed.
Total assets Of $l3,276, ,s52 in.
clude investments of $l2,O69, 800
valued at cost These invest
mentS at the December 81 clos
ing prices had a market value
Of $11.539, ,845.
With investments valued at
cost the book value of the stock
at the end of the year was
$lO.O8 per share and with the
years closing prices as the basis
OF computation the book value
was $3.50 per share. This figure
was arrived at after all expenses
incidental to organization had
been charged off. The balance
sheet shows no deferred charges
or liabilities.
In his report to stockholders,
President H. s. Richardson states
Gnat although the six months in
which the corporation has been
operating has seen the culmina-
lon OF the greatest bull market
n history, followed by the most
drastic decline in security prices
That has ever been known. the
book value Of the common stock
at current prices represents about
81 per cent Of the capital paid in
oy stockholders, or q Shrinkaee
pf only 8 per cent.
He also calls attention to the
act that in addition to unin-
vested funds Of $1,134,172.20, the
corporation has investments in
United States Government, short
eerm and other bonds Of nearly
1000, 900, which gives it around
&5,0O0,O00 of funds which are
practically equivalent to cash.
This is about $3.77 per share of
Che outstanding common stock.
Authority to purchase and re-
Nre 100000 shares of the corpo
ratton's stock at a price not ex-
ceed1ng $3.50 a share will be
asked Of the stockholders at
their annual meeting on January
28. Explaining this request, Rich
@rdSon states:
such q purchase would give
an immediate profit to the cor.
pOratiOn Of $1.18 per share
on each share of stock DUR.
chased. A comparative ANALYSIS
Is given, in the annual report.
OF the book value Of $9.68 per
share and the price Of $3.50
per share at which 1t is pro-
posed to purchase stock for
retirement. This analysis shows
that Of the total book value
of S9.68, $3.77 is represented
by cash or its equivalent, and
$5.S1 by preferred and common
stocks.
at is evident. therefore, If
stock is purchased for retire
ment at $3.50 per share, the
corporation is buying partici
patton in S5.91 worth of securi-
ties for $4.73, or at a discount
Of 20 per cent from December
81 market value Of these secu
rifles"
Stockholders will be asked to
approve the action of the di-
rectorS in granting an extension
to the Wick Chemical Company
until May Is Of it's option to pur-
chase common stock at $40 q
share. The stockholders also will
be asked to waive their rights
to subscribe to an additional 4OO,-
600 shares and to authorize trL
board to issue such stock in their
discretion at not less than $40
& share.
A complete list Of security hold.
tngs is given in the report to
stockholders. The corporation
held, on December 81. 101,2 ,226
shares of common stock.
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