Hearst Consolidated

Publisher William Randolph Hearst has always been the sole proprietor of his vast businesses. Last week he followed up his offer of employe-participation in Hearstpaper profits (TIME, June 30) by offering to the general public 2,000,000 shares of Hearst Consolidated Publications, Inc. 7% cumulative participating preferred stock at $25 a share. Another 2,000,000 shares of this stock will be authorized but not outstanding. The stock will be entitled to participate up to 3% per annum additional in extra profits after $1.75 is paid on 2,000,000 shares of Hearst consolidated common, the voting stock, all of which Mr. Hearst will hold. In exchange for all its common stock, Hearst Consolidated acquired from Publisher Hearst eleven largest and most profitable" of the 24 Hearstpapers: the New York Journal, Chicago American, Pittsburgh Sun-Telegraph, Detroit Times, San Francisco Examiner, San Francisco Call-Bulletin, Oakland Post-Enquirer, Los Angeles Examiner, Los Angeles Herald, Seattle Post-Intelligencer, American Weekly.* Aggregate net profit of these properties for 1929 was $12,854,626.69; their funded debt is $38.547,500. Their net profit from 1926 through 1929 averaged $11,017,873.71 or 3.14 times the 7% preferred dividend requirement.

By holding all the voting stock, Publisher Hearst remains in absolute control of all his papers, as before. But if Hearst Consolidated ever fails to pay four consecutive dividends on the preferred stock, the preferred holders--employes and the general public--may elect a majority of the directorate.

No great friend of bankers, Publisher Hearst made every Hearst office in the U. S. a stock office for handling his operation, putting his securities on sale at one Manhattan, one Chicago, four San Francisco banks only incidentally.

* Famed Hearstpapers not included in the fruitful eleven: New York American, Boston American & Advertiser, Chicago Herald & Examiner, Atlanta Georgian, Washington Times.

This file is automatically generated by a robot program, so reader's discretion is required.