Officials of the Bank of the Manhattan Company yesterday declared the first dividend on the shares issued for the 100 percent. Stock dividend declared several weeks ago. On the entire capital stock, which is now $10,000,000, as compared with the previous $5,000,000 the bank declared a quarterly dividend of 3 percent., with an extra dividend of 1 percent. On the old stock the company paid 24 percent., or 6 percent quarterly. So that the present dividend on the aggregate new and old stock, is greater by 8 percent than the dividend declared heretofore on the old shares alone.
The formal announcement of the dividend was contained in the following statement: “A quarterly dividend of 3 percent on the capital stock of this bank has been declared payable
Jan.2,1922, and also an extra dividend of one percent, payable out of the earnings which have accured since July 1, 1922. payable Jan.2, 1923 to stock holders of record at the close of business Dec. 20, 1922. Transfer books will not close.
So far as the regular dividend is concerned, the rate on the new and old stocks is the same as paid here to fore on the old stock. The announcement specifically states that the 1 percent quarterly dividend is an extra one and there is no statement signifying that this extra dividend is to continue. The quarterly dividend rate on the old stock was 6 percent. So that this has been cut in two; just as the capatalization has been troubled, which makes for an identical dividend return. The extra dividend of 1 percent on the present capitalization means actually an extra dividend of 2 percent on the old shares and this is divided into two by the issuance of the increased capitalization. Two shares being outstanding where there formerly was one. On the presumption that the extra dividend is continued the return on the present capitalization.
