STUDEBAKER ORDERS 25% STOCK DIVIDEND

The New York Times
December 6, 1922
(Excerpt from an article of the same title, non-automotive content removed.)

Directors Will Ask No Increase of Capital to Meet the Distribution.

Directors of the Studebaker Corporation at a special meeting in this city yesterday declared a stock dividend of 25 per cent. on the common stock, payable Dec. 29 to stock of record Dec. 16.  No meeting of stockholders will be called to approve an increase in capital to make possible the dividend distribution, as there is an authorized capital of $75,000,000, of which only $60,000,000 is now outstanding.

"The earnings of the corporation and its prospects are such that the management believes the present rate of 10 per cent. dividends on the common stock will be continued on the new capitalization," the statement read.  It was further stated that the Directors will capitalize $15,000,000 of net earnings which had been invested in plants, equipment, improvements and other developments to provide for expansion.