Regular quarterly dividends were paid also on
the 5% First Preferred Stock, Series A, and on the
5lA% Cumulative Voting Preferred Stock, Series A.
Dividend payments totaled $5,296,820 on all
classes of capital stock in 1958, compared with
$5,232,995 the year before. After dividend payments, $4,806,370 of the year's net profit remained
to provide for the continued growth of the Company,
compared with $4,830,623 for the previous year.
Class B common stock of -Savoy-Plaza, Inc., not
owned by this Company. Accordingly, 8,022 shares
of 5H% Cumulative Voting Preferred Stock, Series
A, and 6,418 shares of common stock of this Company were issued. Certain holders of the stock of
Savoy-Plaza, Inc., dissented and have subsequently
perfected their legal rights, and appraisal proceedings are pending to determine the fair cash value of
their stock. As a result of this merger, the corporate
structure of your Company was further simplified.
The book value per share of common stock of
Hilton Hotels Corporation on December 31, 1958,
was $21.64, compared with $20.35 a share at the
close of the previous year. Book value, of course,
reflects, among other things, the original cost to the
Company of its assets, less accumulated depreciation. It does not reflect the rise in recent years in
the fair market value for such assets. To illustrate
this, The Conrad Hilton is now carried on our
books at $8,661,193, but could be sold for several
times this amount in today's market.
Common stocks of major hotel companies are
currently being accepted by private and institutional investors as attractive vehicles for income
and capital growth. Over 500,000 shares, or 13 per
cent, of Hilton common stock are presently held by
investment trusts, banks, and pension funds.
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