Wages, Taxes, and Dividends
1950 1951 1952 1953 1954 1955
i _ _ Dividends
sale of The Mayflower Hotel, Washington,
D. C, for $12,800,000, plus adjustments
for current assets. At the closing, which
will take place on April 2, 1956, your
Corporation will receive $1,000,000 in
cash, 250,000 shares of the capital stock of
Hotel Corporation of America at a price
of $6 per share, now quoted on the New
York Stock Exchange at $7,375 per share.
The purchaser will assume the first mortgage of $4,850,000 and the balance of the
purchase price will be represented by a
note, secured by a second mortgage payable in installments over a period of ten
years. Your Corporation will realize a
profit of approximately $5,800,000 on
this sale after taxes at capital gains rates.
Your Corporation has also entered into
an agreement extending the lease of The
Plaza Hotel for an additional period of
four years at substantially the same rental
as is being paid under the existing lease.
On January 28, 1955, the quarterly dividend rate on your Corporation's common
stock was raised from 35 cents to 50 cents
per share. Dividends at the new rate were
paid on March 1, June 1, September 1
and December 1, 1955.
Regular quarterly dividends of $1.25
per share on the 5% first preferred stock
Series A and $1.1875 per share on the
4/4% first preferred stock (convertible)
Series B, were also paid.
Dividend payments on both preferred
and common stocks in 1955 totaled
$3,780,749. The balance of the net profit,
totaling $5,324,011, was retained for use
in the business.
Long Term Debt
On December 31, 1955, the outstanding
consolidated long term debt of Hilton
Hotels Corporation was $75,022,446,
compared with $80,326,701 a year earlier.
Analysis of the changes is shown in the
Significant among the changes was the
issuance of $7,978,900 of 4^% fifteen
year convertible debentures through an
offering of rights issued to former stockholders of Hotels Statler Company, Inc.
The funds derived from the sale of these
debentures were applied toward reducing
the $20,000,000 loan from The First National Bank of Boston by $8,000,000.
With the sale of The Jefferson Hotel on
December 29, 1955, the hotel's indebtedness, then amounting to $1,768,964 was
assumed by the purchaser.
In addition to the required payment of
$350,000, an extra payment of $350,000
was made in 1955 on the outstanding