Viewing page 56 of 98

This transcription has been completed. Contact us with corrections.

106
have already large incomes have to lose over 50% on addition income surtaxes, and then reinvest the remaining half in exactly the same government securities in which our Company is now investing its surplus funds. Nor do I consider our surplus too large in comparison of other well run companies. The method of putting aside in surplus at least 1½ or 2 times or more what is paid in dividends runs the very method any pioneer business like ours ought to follow. This was our attitude long before the war and long before taxation hit us so badly.
I suggested to Hays that we declare a 33⅓ stock dividend. This would allow those of our stockholders who prefer money, to sell their stock.- I would
[[end page]]
[[start page]]
107
even go as far as our Company loaning money on their stock at low interest the latter - to be deducted from the dividends. But he is against this. I believe that all of them witnessing the prosperity of our company want to be in a position to buy more stock and the stronger the financial position of our company is the less chance there is for them to buy stock. The more stock dividends we declare the less valuable becomes the stock. I cannot blame Hays, Schleussner, Townsend and others for [[strikethrough]] getting [[/strikethrough]] trying to get more stock but at the same time I do not see why this should be done to the detriment of the best interests of our enterprise and of our larger stock holders. I shall try to devise some other ways for satisfying them.