Better Than Banks - Los Angeles Herald (Los Angeles) - 17 Apr 1892
BETTER THAN BANKS. TDK LEADING AMERICAN INDUS TKIAL DECLARES ANOTHER DIVIDEND. An Unusual Opportunity for Wide-awake Investors to Secure Shares in a Company Company Whoso Stability and Earning Power Are Unequalled. H. H. Warner & Co., limited, having declared an interim dividend of 4 per cent on the preferred and 5 per cent on the common etocK, dividend checks will be mailed to the American shareholders on April 6th by the Central Trust cornpan cornpan v of 54 Wall street. Iv November last this company declared declared a dividend of 4 per cent on the preferred and 10 per cent on the common common stock. The end of their fiscal year will be July 3lst. In order to secure for onr readers some idea of the amount of dividend that will then be declared, our reporter called upon Mr. Warner, at 60 Broadway, as also to ascertain anything further, in regard to the recent report that H. H. Warner & Co. were about to double their common stock. In reply to the scribe's question, Mr. Warner said : "The dividend which the company has just declared is merely an interim one. Such a dividend is liable to be declared at any time. The company has a very large reserve, and I suppose the board of directors are desirous of (fatting rid of some of the company's accumulations. They, therefore, declared declared ihis dividend, regardless of the one to he declared at the expiration of our fiscal year." "Well, Mr. Warner, what do you estimate will be the amount of dividend the company will pay at the close of the present fiscal year?" "I cannot give any exact figures, but, as near as 1 can approximate, the company company will have fcb >ut 1400,000 to distribute distribute at the end of this fiscal year, in addition to the amount that will have been previously distributed in the course of the year, and I have every reason to believe that the next dividend dividend will be at the rate of, at least, 30 per cent on the common shares. In tact, after paying the regular dividend of 4 per cent on the preferred stock, I believe that the company will be able to pay, if they choose, at the rate of 40 per cent on the common stock ; but tbe corn pan;' may conclude that it is wise to pay but, say, at the rate of 30 per cent dividend on the common stock end use a large amount of their surplus to cancel cancel the c rmaining debenture bonds, which now amount to less than 426,---000, 426,---000, over $300,0 10 of these debentures having been cancelled hot year, besides paying 17f.j per cent on the common gtock. You will see by theee figures that tbe company will make even a better showing this year than ever before." before." "So, Mr. Warner, the prediction that was mace by you a few days ago to the effect that you believed the company would shortly double its common shares is likely to come true sooner than you ant icipated." "No, 1 cannot say that. Ido believe, tbongh, that the capital stock ot the comtni v shares will be doubled during the next fiscal year, commencing August let. I cannot wel l see what is to become of our surplus, unless we pay extraordinarily extraordinarily large dividends —which I do not think wise—or double the common stock of ;he company. You see, our business is growing belter continually, and our common shares only amount to 1,700,---000. 1,700,---000. There ia a blight possibility of being being able to make half as much as that in the future from the Baking Baking Powder alone, which we are now putting upon the market in addition to our present business, which would permit our paying over 50 per cent dividends on the common stock. These facts, figured in connection with the regular profit which has for years been derived from Warner's Safe Cure and Warner's Safe Yeast, almost warrant warrant the belief that we will earn a profit of over $1,000,000 per year. If so this vast sum would all go to the common shareholders, after paying the comparatively comparatively small dividend pf Bperctnt on the preferred etock and the interest on the remaining debentures if not cancelled. cancelled. With the business continually improving and its record since being capitalized into a company of a net profit from Warner's Safe Remedies, alone, of over a million dollars in two years, my prophecy becomes almoßt a reality." "Are you still selling your shares, Mr. Warner?" "I shall sell a few more chares to our patrons, at the rate of $75 apiece for the common and $50 apiece for the preferred, preferred, the par value of these shares being being £10, or about $50 each." "Are you willing to continue to sell your Bhares at this price, the purchaser to have the dividend which has just been "declared of 5 per cent on the common common and 4 per cent on the preferred?" "Yes, I shall sell a few more shares up to the time the dividend is actually paid, at the prices I have just given you, the purchasers to have the dividend. dividend. After the dividend shall haye been paid I do not expect to sell many more shares, but if I am satisfied I can benefit the business by using this means of advertising it, I shall sell a few, but at an advanced price." "Is there anything further you wish to say about the business?" "No; there is nothing further to say, and, in fact, I do not care to say anything. anything. I am willing that the business -diould speak for itself. I claim that it has a dividend-paying record for the past twelve years that very few, if any, businesses can excel. When the revenue sure to result from Warner's Safe Baking Baking Powder is added to that already derived from Warner's Safe Cure and Warner's Safe Yeast, I do not see what there is to prevent it from being ono of the largest dividend-payers of any legitimate legitimate business in this or any other country."