1912-12-12 — Page 5

Page

Cutler Falmer & C

the thine Merchany of the last

INAPIER

JOHNSTONE'S

"

'SQUARE BOTTLE

WHISKY.

UNVARIED FOR OVER

150 YEARS.

THE SAME TO-DAY AS IN

1745.

BEWARE OF IMITATIONS.

SOLK AGENTS IN HONGKONG

LANE, CRAWFORD & CO.,

and from ALL WINE MERCHANTS.

FREE COUPON Entitlog Anyone with RHEUMATISM

(02

THE HONGKONG DAILY PRESS, THURSDAY, DECEMBER 12ra 1912.

THE DEFERRED SHARE SYSTEM.

SOME INSTANCES OF HUGE DIVIDENDS,

[BY A CORRESPONDENT OF THE TIMES."]

The announcement of a dividend equal; to 233 per cent, on the Deferred shares of the Strand Hotel Company is an interest- ing reminder of the fact that sometimes the Doferred share, which is so often the Cinderella of the investment market, is decked out by a fairy godmother in all] the splendours of affluence. It serves alsc to remind us that there are more kinds, than one of Deferred shares. There is the Deferred svare that bas to be content with the droge of a moderate distribution, and there is the Participating Deferred share that "gees halves" in the surplus profits of a superb prosperity. There is the Deferred share created by the process known as share splitting, and there is the Deferred share that owes its origin to the patient modesty of the founders of the company.

"STOCK AND SHARE SPLITTING. - -- --- --- --

In the case of a railway stock, or an Industrial share, the price of which has grown to an unwieldy size, market con- venience may be a good reason for split- ting it into Preferred and Deferred. The success of such a policy depends on Bubse quent conditions. Stocks or shares so dealt with do not always gain in dignity, or, what is more important, in investment attractiveness, by the operation. The Stock Exchange may welcome Deferred or "A securities with varying and uncer- tain possibilities, because they add to the number of counters that encourage speculation; but it does not follow that the interests and convenience of the stock. holders are correspondingly advanced. If to-day it were proposed for the first time to split Midland or South Western Railway Ordinary, the proposal would not meet with unanimous support; indeed, it is by no means certain that it would

to receive propaid our celebrated Treatise, "The cance and eure of Rheumatism, illustrated in colours.not be rejected. The share that has risen

Name...

Address

Only one book to one address,

$370

to 10 or 20 times ite face value is in a somewhat different category. When a share like Rio Tinto or Coats' has appre

profits and consistently high dividends, there is a good deal to justify its division into several equal shares of a smaller denomination. This is not the same thing as splitting a railway stock into Pre 接 fixed ferred Lad Deferred, with

If you have Ehemmatism, cut out the aboreciated to £60 or £10 as the result of large Coupon and send it to us with your same and address plainly written on the blank tires. Return poet will bring you our celebrated book, The cause and cure of Bheumatism," explaining the wonderful treat mout which in ouring no niany thousands of Rhea stic außerors. This treatment we call Magis Foot Drafts, and they are curing very bad cases of every kind, no matter how severe. They are curing ces of 30 and 40 years' suffer. ing after doctors and baths and medicines bad ailed. Send us the coupon to-day and wo.

now that after receiving

MAGIC

dividend (if earned) for the former, and a generally more or less pitiful surplus for the latter.

DEFERRED WITH PARTICIPATION.

our Booklet and reading and thoroughly under. standing our treatment you will not hesitate to accept the offer wo shall make you. Our faith in seas and rarity of its fruite. Such a strong that our treatment will oure you that we want you to write immediately for Bookdot, eo out the above coupon and send it to the Magic Foot Draft Co., Chinn Agency, P. O. Fox 324. Hongkong. thins. Send no money, no stampa, just the scapor and we will send our Booklet by-return of post.......

[1341

Warm Days Angwi.h their pleasures some discomforts. Then it is really refreshing to remove every trace of dust and perspiration by using

Calverts

Toilet Soap

and any day it is a good soap to choose for ordinary toilet use. Fare and cleansing, pleasantly perfumed and antiseptic-for 10% crystal carbolic is incorporated with it... | you will find it not only excellent for the skin and complexion, but also a protection against contagina Your local Chemist or Store sells it in three tablet boxes, F.C. CALVERT & Co., Manchester, Eng

FOR

-71-2-

NERVOUS EXHAUSTION

LOSS

of

MEMORY

and

DEBILITY

feed the REAVES

CHAPOTEAUT'S PHOSPHO-GLYGERATE OF LIME

It increases vital energy and nerve force, cures Naurasthenia, Dyspepsi, tasomania, and nevenus diasuses in adults and children.

IN CAPEBLES, IN WOIE, AND IN- BYRUP

1.13.4]

It is the Participating Deferred share that has the chance of securing the golden plurns. As a rule its capital risk is insignificant in comparison with the rich- share entitled to the surplus or even to a half of the surplus profits is an excellent and often A magnificently beneficial Opportunity for capitalists who speculate in contingent remainders. It is not always, however, a fair arrangement for the Preferred Ordinary shareholders, who have subscribed the bulk of the capital. Let us take a possible instance, Bay the Preferred Ordinary shares in a company amount to £100,000, and the Deferred Ordinary to £5,000; that the former are. entitled to preferential distribution of 10 por cent, and one-half of the surplus, and the latter to the other half of the surplus; then, if the divisable profit for.

WM. POWELL.

LTD.

THENPHONE 346.

XMAS BAZAAR

DOLLS,

NOW

OPEN

FUR ANIMALS,

MECHANICAL TOYS,

THE

Tobacco fakto

Westminster London

Mscufacturers of Cigarilles & Smoking Tobactos

・・・ of the Highest Quality only • · Obtainable of all High Class Tobocconists

WESTMINSTER TOBACCO CO. arc experienced manufacturers of the highest grades of Turkish and Virginian Cigarettes and the most select brands of pipe Tobaccos. We desire to call the attention of all lovers of a really first-class article to their productions. Westminster - Virginia No. 22's.

*

55

No. 44's. Smoking Mixture Tobacco. Sliced Plug Tobacco.

GARNER, QUELCH & Co.,

GAMES,

BALLS,

CRACKERS,

Y

SWINGS,

TRICYCLES,

TOY

Z

W

R

DOLL CARRIAGES, ETC.

PRICES

FEOM

$35

TO

E

$345

0

the year is £20,000, the Preferred will get R

£16,000, or 15 per cent., and the Deferred will get £5,000, or 100 per cent. This does. not seom equitable, having regard to the obvious fact that but for the subscriptions of the Preferred. Ordinary shareholders there would probably not have been a Company at all. It is, of course, likely that the Participating Deferred holder may have to wait for two or three years before he gets anything. He may have to watch the Preferred getting dividends which, though not exceeding 10 per cent., or whatever the stipulated rate may be, show no available surplus for him. He has to wait his time, and there is the chance a chance frequently realized that his turn will never came. He must bow to the conditions of precedency to which he has tacitly agreed. For thus consenting to take a place "below the salt' he is undoubtedly entitled, to special consideration. The question is if the consideration is not in certain notable instances disproportionate to his services and his contribution.

PROFITABLE DEFERRED SHARES,

K

Τη

LAND.

No matter how much or how little you want to pay for a Christmas gift, you won't get anything that will give so much pleasure as a Victor or a Victor-Victrola.

There's one of these instruments at a price to suit every purse, and we'll arrange easy terms if desired.

Stop in any time and we'll gladly play any Victor music you want to hear.

S. MOUTRIE&Co.,

LIMI FED,

EXCLUSIVE DISTRIBUTERS.

bench, entitled to a cumulative dividend,, of 20 per cent., and 1,850,000 Deferred Ordinary of 26. each, entitled to the whole of the sulplus profts after payment of the 20 per cent. to the Preferred and placing £10,000 to reserve. These capital provisions are the result of more than one conversion of subdivision, and were Here is this case of the Strand Hotel; of course accepted by the different classes Company.

The Deferred shareholders of shareholders. The 2s. shares have had have been extraordinarily fortunate. The a remarkable career, as the following fact that the shares are what is called record of the dividends will show:-1907, "privately held" does not affect the 531 per cent: 1008, 033 per cent.; 1909, position one whit. Nothing is implied $5 per cent; 1910, 125 per cent. ; and against the good faith of these favoured 1911, 200 per cent. holders. The conditions were set forth when the company was formed and duly stated in the prospectus, and wore assent- ed to automatically by the Preferted shareholders as conditions by which they were bound. The company which owns the Strand Palace Hotel has an Ordinary capital of £135,000, consisting of £130,000 Participating Preferred Ordinary and £5,000 Deferred Ordinary. The Fre ferred are entitled to a non-cumulative 7. per cont. and one-half surplus profits, and the Deferred to an equivalent amount and then to the remaining half of the prohta. The distribution to the former for the period ended in 1910 was 9.395 per cent., for the year 1910-11 it was 9 per cent, and for 1911-12, it is 9 per cent; and the dividends on the Deferred shares for the same periods were. 241 per ent., 233 per cent, and 233 per cent, respectively. Thus the amount allocated to the Deferred £6,000 is considerably over £35,000 for three years. Theao sizares, of course, were never offered for public subscription.

pany

It will be remembered that in the case of Harrod's Stores the Founders' shares became so valuable that a separate com-

was formed to deal with them. D. H. Evana & Co. is another example of highly profitable results for the Founders' shares, £2,000 in amount. The following dividends have been paid-1908-7; £10; AS COMPRESSOR with ELECTRIO 1907-8, £11 1008-9, E10 10s; 1909-10,-

FOR SALE..

SOME DISADVANTAGES OF THE METHOD. The feelings provoked by the inequality in the two kinds of Ordinary capital are accentuated when, as is sometimes the case, the more profitable shares have been issued to vendors or promoters as fully paid, In a number of comparatively recent picture theatre companies the Deferred shares are really Founders' shares, for which no cash consideration has been ever paid to the company; get they are reaping by far the more bounti- ful harvest and will continue to do so as long as this form of entertainment attracts the public. The holder on these terms reaps where he has not subscribed. Moreover, he often enjoys and exercises voting powers that practically override the Preferred holders and exclude them- from any effective control of the property for which they have found the capital. We do not classify these ventures in the game category as the respectable com- panies already named; and in many cases Deferred Shares are rightfully issued to and held by those who have built up the business and are hostly interested in its prosperity. The case of the picture theatres, however, indicates the dangers that may be connected with this method of capitalization, and that the Deferred Ordinary share may be a pitfall for the anwary.

FITTINGS. Wil £7 175.; 1910-21, 28-66; and 1811-12, THERAPION ZOTOR and

ordinary lighting power by 25 per cent

inure withoudertas cost. - Apply

MANAGER, "Hongkong DaBy: Pross" Ofice Hongkong, 13th March, 1912.

THE WEW PREKCH REN EDY: N° 1:2 1:2 price 2/0 leanditge Chémiata CURES, BLOOD POISON KIDNEY, BRANCHEN URINARY DISKLEIS

£9 s., making an aggregate of 4,595 per cent. in six years! Then there is the Maypole Dairy Company, with its As curiously arranged capital account. issued it amounts to 2635,000, consisting THERAPION of 1,800,000 Preferred Ordinary shares of

EMOTIKO SURE,

ANG 175

TILEPKONI 436,

BOLE · AGENT8.

OU ARE INVITED to come and

inspect our tine Assortment of

DOLLS, TOYS,

and

CHRISTMAS GO÷ÍÐS- Prices from 10 Cents upwards. GRACA & CO.

PEDDER ST. (Hong Kong Hotel maiding)

OVER 1,000 DOLLS IN STOCK,

PRICES

FROM

$35

ΤΟ

$345

Victor

Van

Houten's Cocoa

For Breakfast,

Lunch and

Supper.

Your table is incomplete without it. `Ask your grocer for a sample.

QUEEN

MARY and

[1752

(128

TO LET

TO LET.

ARGE SUBSTANTIALLY - BUILI GODOWN, situsted on Water Front. East Point,

For farther partionlars apply Property Offlos JARDINE, MATHESON & Gồ. LTD Hongkong, 15th August, 1912, 1995

TO LET.

LAGGESFORD,” No. 114, PEAK, Farnish. ed or Unfurnished, from 1st January, 1913, 6 ROOMS.

No. 21, SHELLEY STREET.

No. 6, DES VŒUX VILLAS, 58, THE FEAK, from 1st March, 1913. Premises will be thoroughly repaired, painted and colourwashed.

68, MOUNT KELLET, Partly Furnished, immediate possession to 31st May, 1913.

From 181 February, 1913. MERION, No. 10, PEAK, Furnishad or Unfurnished. & ROOMS, For Fale. GLENSHIFL,” 124 and 125, Barker Road, close to Tram Station.

For Sale. "HARTING and ROGATE“ on part of Kowloon Inland Lot No. 1154,

Apply to LINSTEAD & DAVIS, ... 3rd Floor, Alexandra Buildings. Hongkong, 1th December, 1912.

TO LET,

122

IN 2ND FLOOR, No. 2, PEDDEZ ŠTRENI,

JARDINE, MATHESON & Co., Lrn

Apply-

E

W

NONE ROOMED OFFICE

Apply Property Office,

Fongkong, 23rd May, 1912.

R

OFFICE TO LET.

E

C

Ꭱ

D

TO LET.

1733

[1330

S

1182

ST FLOOR, very central, One Large and

One Small Room, Small Godown.

G. B. A.,

Care of "Daily Prim" Office. Hongkong, 20th November, 1912.

(HOP in ALRxandra BuilDINGS,

Apply→

A. S. WATSON & Co., LTD., Alexandra Building 6.

11354 Hongkong 27th November, 1912.

TO LET.

GODOWN, No. 4D, Praya East, Wanohai,

Apply to-

January, 1913,

KWONG SANG HONG, LTD.,

248, Des Voeux Road Central.

longkong, 6th December, 1912.

FFICES In KING'S BUILDING

FF༔

GODOWN, 102, Praya East.

Apply

THE HONGKUNG LAND INVEST

MENT AND AGENCY Co., LTD. Hongkong. 4b.December, 1912.

IUFCULUM, 136, Barker Road, Furnished

for one year from 1st March, 1913. Apply

LANE, CRAWFORD & Co. Hongkong, 2nd December, 191* 1368

KING GEORGE

...,:::"

CHOCOLATES in Tins,

NEW

Ty but CONSIGNMENT.

WEISMANN, L T D.

802.3

OFF

TO LET.

TO LET.

TO LET

L1390

[12)

FFICE in ALEXANDRA BUILDINGA.

Apply

A.B. WATSON & Co, Lro, Alexandra Buildings.

[1322 -Hongkong, 16/4 October, 1912.

FOR SALE

FOR IMMEDIATE DELIVERY,

TWO NEW STEEL STEAM

TRAWLERS,

Completely fitted with Trawl Winch, Trawls Electric Light, etc.

For Particulars, apply to—

1327]

ON

E. H. HUNTER & Co., Kobe, JAPAN.

SALE

AT THE

HONGKONG DAILY PRESS

OFFICE

NEW AD UP-TO-DATE

PLANS OF THE SI-KIANG

WEST RIVER.

PRICE ONE DOLLAY,

Giving all the Importent Towns on renta

fin CANTON TO WECHOW NAMELEON AND A MATURAL