PACKARD DOUBLES STOCK.
The New York Times
November 21, 1922
A Hundred Per Cent. Dividend Goes to Common Shareholders.
Special to The New York Times.
DETROIT, Mich., Nov. 20.—Directors of the Packard Motor Car Company this afternoon declared a 100 per cent. dividend on the common stock payable in common stock Dec. 16 to owners of record of Dec. 9. The Directors consider that a portion of the accumulated surplus should be permanently invested in the business to care for needs created by its rapid expansion.
The stock dividend follows closely a dividend of 5 per cent. in cash, which was distributed to owners of the common stock on Oct. 31 last.
Application has been made for a listing both the common and preferred stock of the Packard company on the New York Stock Exchange, and it is likely action on the matter will be taken by the Board of Governors of that organization within a few days. The stock for some time past has been traded in on the New York Curb Market.
Payment of a 100 per cent. stock dividend by the Packard Motor Car Company will cause an increase in that company's common capital stock from $11,885,100 to $23,770,200. Inasmuch as the authorized capital stock of the company is $30,000,000, no special meeting of stockholders will be necessary to approve an increase in capital to make possible the distribution of such a large stock dividend as was declared yesterday. The general balance sheet of the company at the close of 1921 showed a profit and loss surplus, after payment of all cash dividends, of $15,923,896, indicating that a fair surplus will still remain on the books after the transfer of $11,885,100 to capital account. In addition to the common stock there was outstanding, according to the last annual report, $14,789,800 of preferred stock and $9,853,500 ten-year 8 per cent. gold bonds.
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