Garden City Telegram from Garden City, Kansas on February 13, 1964 · Page 8
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Garden City Telegram from Garden City, Kansas · Page 8

Garden City, Kansas
Issue Date:
Thursday, February 13, 1964
Page 8
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Two Sides to Bell Stock Move *y SAM OAWSON AP Bo*ln**» N»w* Anllyst NEW YORK (Af) - Mother Bell is out to raise one and a quarter billion dollars by selling more stock to those already owning shares. There are othet ways a corporation can raise money. Each has its advantages and drawbacks. And some years one fund-raising plan is more in fashion than others. On the face of it selling more stock would seem the least painful. But it isn't always so. First, the terms have to please the present stockholders. They see each share's portion o( company assets diluted by that much, at least theoretically. And the offer mustn't upset the market for the old shares. American Telephone & Telegraph seems sure to please the present stockholders with its offer. Each one owning 20 shares Feb. 18 can put up $100 in cash and get a new share. The price of existing shares rose Tuesday on the stock market after the announcement and closed $146. This makes the offer attractive to the "Wost cautious owner. The directors obviously felt the spread between $100 and $146 would assure success of the offering. Second, when new shares are issued, there are just that many more outstanding on which stockholders will expect dividends—now and in the future. And a corporation doesn't get an;- tax credit for money paid out as dividends as it does for money paid out as interest on debt. AT&T also raised the dividend rate from 90 cents a quarter to $1. Its total outlay for dividends will rise by 40 cents a year on both old and new stocks as long as the rate is maintained. The directors obviously feel money raised by the sale of new shares can be used to expand facilities that will easily justify the. extra payment. But this dividend obligation, *ven if only implied, often deters corporations from offering new stock instead of raising money other ways. These include borrowing from banks, issuing bonds, debentures, or convertible debentures —bonds which can be changed into common stock—or issuing lOUs in the short-term money market. Interest paid on various forms of borrowing is charged as an expense before taxes. And since in a sense the federal government is paying half of this interest—tax payments can be cut by that much — many corporations find this the most painless way to raise funds espec- Ctt.t telegram . Nbnerf 13? If 44 Young Hobby Club Dip-Painted Covers For School Books By CAPPY DICK T If you would like to make some marbled paper covers for your school books, here's I how to do it: ' Get some plain paper that has •<••* glossy surface and cut it to -the size that will fit one of your •irooks. Also get a small amount •of enamel paint. Almost any col- "or will do — green,, ' yellow, red and even black. Find a large pan or a bucket Clean it and fill it with clear •water. Place a few drops of enamel on top of the water and stir it gently with a small stick until "the paint has been separated 'into a web of fine lines. Be sure all the drops of enamel have been broken up. Dip the paper slowly into the water edge-first as the boy is doing in Figure 1, then slowly lift it out, holding the naper vertical as you do so. The idea is to let the swirls of paint cling to both sides of the paper. Hang up the paper where nei- •ther side will touch anything. • Eet it dry. When you are sure Mrhe paint has hardened and will 'not smear, polish the paper with a little paraffin to make the surface smooth. -' t-Your marbled cover Is thnn ready to wrap around your school Ibook. •TOMORROW: Directions for ! Making • Funny Sock Doll I .^Whether buying or selling, use ^Telegram Want Adi! Paint Film on Water Chinese Notionalists Ordered to Hold Fire TAIPEI, Formosa (AP)—The Chinese Nationalist commander of Quemoy has ordered his troops to hold fire against the Chinese mainland for the next three days unless the Reds start something. The order was designed to enable civilians and Red troops along the mainland coast to celebrate the Chinese lunar new year, which begins Thursday. Red China announced it was withholding artillery fire against tht offshore islandi during the holiday period. Somalia Orders Cease-Fire on Bolder MOGADISHU, Somalia (AP) —Responding to a peace plea from U.N. Secretary-General U Thant, the government of Somalia has ordered an immediate cease-fire in its border fight with Ethiopia. Both Prime Minister Abira- shld All Shermarke of -Somlia and Emperor Haile Selassie of Ethiopia hailed Thant's appeal, but "each accused the other of border violations. ically when money market conditions make borrowing easy and comparatively inexpensive. But borrowing has its draw- I backs, too. First, the interest j has to be paid, even if half of it can be considered a tax benefit. Second, eventually the loan must be repaid. And the money found to repay it. AT&T, on the other hand, is under Bo obligation to repay the $100 to a stockowner who buys one of the new shares. Except for the dividends and the spreading of assets over mote outstanding shares, the big new financing is like money found. The phone company nas used many ways of financing its huge growth. Its last offering of common stock was some 11 million shares in February 1961 at $15 a share, at the same ratio of one for each 20 already held. It also has borrowed through debentures, both straight and convertible, and has tapped the market for short-term loans. It all depended on the state of the money market at the time— and the state of the stock market. In today's bull market, with popular stock average indexes hitting record highs, sale of more common stock couldn't help but look attractive — to a company whose stocks are in demand at well over the $100 mark. Some of the world's oldest known vestiges of flowering plants were found several years ago in Colorado's San Juan Mountains. Eighteen-inch fossils imprinted on red rock show a palm- like growth that flourished 165 million years ago. Local or LMM Distance MOVING Cad III 6-7471 DAVIS Von ft Storage Company A 8AQ CniQ WOULDN'T 0E $0-BAQ IF IT WEREN'T FOR THE ASVtCC OF A -> Att >AUr$tQft;U ACCI06NT OR A SIRE WON'T B£?$0 BAD E!THe^ IP*YOU USTEN TO SOHg ADVICE FROM A 'jf?ROF£$SI(tH« AL IHSUflANCE HANI - * """ COHE IN OrGAil FOR OURSU ' INSUR^ PREMIUHS A«€ 'HQRg TflAN 4MST THE A Pie£E flP^PAPPftl --"<WK/^ * <•<- >i CHEVROLET makes all types of quality trucks CHEVROLET T9l9phom your Chwrobt cfci/tr ttout my typ* of truck 111 N, MAIN SCHREIBER MOTORS, INC •AIM N CITY t-1117 WHAT IF SHE CAM60VKTO WHAT IF SHE SAI010ME. MICKtY MOUSE DMHtoM I* Xtof Tmt'im UMt Pro*«faM WHY IS (3OOFV STAKING AT THOSE WORMS? ME SEEKS WKP6CTION IN HIS NEW BUSINESS, BEETLE BAILEY STANDING IN THE \/ OUST SUOvYS CHOW-LINE LIKE )/ VDU WHAT A EVERYONE ELSE /\ R66ULAR 6UV ETTAKETT AND JUST WHAT IS THIS YOU Pur OU/3 PHONE ? J I BOUGHT IT.' I IT'S FOR HOMES \ TEEN-AGE. V DAUGHTERS/ DONT TOUCH \ THE PHONE/— \ IT'LL. ANSWER J THCCAU.- THIS IS A — err* is NOr HOMCi'-THW IS POGO SNUFFY SMITH OL' BULLETS GOT PAW" WHAT'S THAT^ LEETLE NOSE •**"•• w " 1 " 1 ** I"™ GOOD GAL!! THAT DONE IT" I'MMQMN'OUT IN TH'BARN!! DAOBURN DOG DOIN 1 I'M DOCTORIN' IN MY BEDSTID? STEVE CANYON PONT >W THIN* «HE MY MOTHER HAS BEEN HUiT IN AN AUTOMOBILE ACCIDENT DOWNSTATf... HAIN6*,CAU. MY DATE AND MX. HIM H6 WILL DEIVE M6TDTH6 'PLACE... ANNIE, DONNA! HELP ME ...AH-MISS BOYP, ' ADVISE YOU TO GET HERE jyJfiWS THAT WS MUtT BTTWSB NT WHEN TNB VOTE \* ANNOUNCED IN CRPER Tp BE CC0WMF P «NOW IAU. OVMM? YES, I HEARD YOU, OFFICER THE RYATTS CAN'T ILONPJ! HERBSTHE LOAFOF BREAD YOUASKEPME TO BRING HOME, BLONOIE p IN PIONEER TIMES, ( WIVES HAD TO GRIND | V THEIR OWN FLOUR • . \J ANP BAKETHEIRl OWN BREAP

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