SALT LAKE CITY, UTAH, .
TO THE STOCKHOLDERS OF ZION'S CO-OPERATIVE MERCANTILE INSTITUTION:
The increase of trade and demand made upon the Institution
by some of its best customers for accommodation, convinces us that
our capital of $1,000,000 is inadequate to transact the large
business of almost $4,000,000 per annum that the Institution is
now doing; particularly when it is remembered that upon some lines
of goods we have to give four months' time after the goods have
arrived here and been sold.
At a meeting of the Board of Directors held on the 15th of
February, the subject of increasing the Capital Stock was referred
to a special committee who have reported, recommending that the
Capital be increased 2,500 shares, and that $135 per share be
charged for this increase, $100 of which will be credited to Cap-
ital Stock account, and the remaining $35 to Reserve Fund, so as
to place the new stock exactly on a par with the old, so far as
reserves are concerned.
In our showing just made of the assets and liabilities of
the Institution, it will be seen that we have a Reserve Fund of
$350,000, to say nothing of the extremely low valuation placed
upon real estate and buildings and on our stock of merchandise;
so I have no hesitation in saying that at $135 per share, it is
under rather than over the actual value of the Stock. Our showing
for the past year is a good one, as good as any we have heretofore
made, and we have every reason to believe that we shall continue
to do a large and prosperous business, and I see no cause why we
should not be able to pay as good dividends as we have heretofore
done, after this increase has been added to the Capital Stock.
It is proposed to allot this Capital Stock pro rata to our present
stockholders in the proportion of 25 per cent of their present
holdings, but no subscription will be received for fractional parts
of a share, excepting from such as now own a fraction and desire
to make up a full share.
A circular has been prepared, which I have pleasure in
enclosing with this, upon which stockholders will kindly notify
the Secretary of the Institution whether they wish to subscribe
and take ths additional stock or otherwise. It is important that
the matter should be attended to by the stockholders as early as
possible and the notification returned without delay. The new
Stock must be paid for to the Treasurer of the Institution, one-
half on or before May 1st, and the balance on or before Aug. 1st,
1891.
Respectfully,
Wilford Woodruff
President.
