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Bulletin HASKINS & SELLS 87 A New Angle ODDITIES relating to capital stock having no par value are not uncommon. Queer conditions attaching to offerings of such stock have been so frequent that one is no longer startled by peculiar provisions surrounding them, no matter how absurd such provisions may be. There was noted recently, however, a somewhat original restriction attaching to what may be called old line preferred stock. In a statement of the preferences, rights, privileges, and restrictions or limitations attaching to the six per cent. cumulative, participating preferred stock of a certain utility company, the following appeared: "In case any stockholder of preferred stock shall at any time desire to sell or otherwise dispose of any such preferred stock, he shall give written notice thereof to the company at its main office; and the company shall have the right within thirty days after the receipt by it of such written notice to purchase the preferred stock described in such notice, upon the payment of an amount equivalent to the par value thereof and the amount of any unpaid dividends accumulated thereon to the date of purchase plus a premium equivalent to 5 per cent. of such par value if dividends of not exceeding 6 per cent. in the aggregate shall have been paid on the preferred stock during the period of twelve consecutive calendar months next preceding the purchase thereof, * * *. No preferred stock shall at any time be transferable by any stockholder unless he shall have first given the said written notice to the company, nor unless the company shall have either consented in writing to such transfer, or shall have failed to exercise its right to purchase the said stock within thirty days after the receipt by it of the said written notice." In justice to the company, it should be said that this stock is provided largely with the idea of offering it to consumers of the company's product. The point involved is the effect which the provision will have on the transferability of the shares. It is apparent that such stock will never be traded in freely, and doubtful if it could be listed on stock exchanges. Book Review Sanders, Thomas Henry. Problems in Industrial Accounting. (Chicago, A. W. Shaw Company, 1923. 643 p.) As might be expected, this book deals largely with the subject of costs. It gives a good idea of the various cost problems which arise in connection with manufacturing operations, and contains a vast amount of illustrative material having to do with cost accounting methods and technique. Most of the problems have been collected by the Harvard Bureau of Business Research, which has spent large sums in research work. The book in question is essentially a case book, and should be found especially valuable for teaching purposes. The text, in so far as it covers the theory of cost accounting, is rather meager, but the problems are clearly stated and furnish an excellent basis for study. Not the least value of the book is that it sets forth the problems of various lines of industry as well as groups the problems under classified headings corresponding to cost factors. Among the industries covered are mining and lumbering, hardware and metals, machinery and tools, food products and chemicals, textiles, and rubber and leather. The bibliography furnished is extensive and well selected.
Stocks -- Accounting
Haskins & Sells Bulletin, Vol. 06, no. 11 (1923 November), p. 87
|Source||Originally published by: Haskins & Sells|
|Collection||Deloitte Digital Collection|
|Digital Publisher||University of Mississippi Libraries. Accounting Collection|
|Identifier||HS Bulletin 6-p87|