OFFICERS* DIRECTORS~' NORTHWEST AIRLINES, INC. ~f!lle/wd 1 9 5 a Regisfrar: THE CHASE MANHA TT AN BANK, NEW YORK, N. Y. Transfer Agenfs: BANKERS TRUST COM PANY, NEW YO RK, N . Y. *As of February 25 , 1959 GENERAL OFF I CES : 1885 UNIVERSITY DONALD W. NYROP President MALCOLM S. MACKAY Executive Vice President FRANK C. JUDD Vice President-Operations and Engineering LINUS C. GLOTZBACH Vice President-Personnel GORDON M. BAIN Vice President-Sales PAUL L. BENSCOTER Vice President-Orient Region A. E. FLOAN Vice President and Secretary PHILLIP T. DROTNING Vice President-Public Relations C. L. STEW ART Vice President-Plans WM. J. EIDEN Treasurer AL ROY D. Pl EPGRAS Assistant Comptroller DONALD H. HARDESTY Assistant Treasurer FRANK J. SCOTT Assistant Secretary DALE MERRICK Assistant Vice President-Properties CROil HUNTER Chairman, Board ol Directors, Northwest Airlines, Inc. JAMES H. BINGER Vice President, Minneapolis-Honeywell Regulator Co. 2753 4th Avenue So., Minneapolis, Minn. HADLEY CASE President, Case, Pomeroy &- Company, Inc. 285 Madison Avenue, New York, New York MORTON H. FRY Partner, Rifer & Company 40 Wall Street, New York, New York TED R. GAMBLE President, Mount Hood Radio and Television Broadcasting Corporation 140 S.W. Columbia, Portland, Oregon JOSEPH T. JOHNSON President, The Milwaukee Company 207 E. Michigan, Milwaukee, Wisconsin MALCOLM S. MACKAY Executive Vice President, Northwest Airlines, Inc. St. Paul, Minnesota CL YOE B. MORGAN President, Rayonier, Incorporated 161 East 42nd Street, New York, New York DONALD W. NYROP President, Northwest Airlines, Inc. St. Paul, Minnesota ALONZO PETTEYS Vice President and Director, Farmers State Bank Brush, Colorado C. FRANK REAVIS Partner, Hodges, Reavis, McGrath &- Downey 26 Broadway, New York, New York ALBERT G. REDPATH Partner, Auchinc/oss, Parker &- Redpath 52 Wall Street, New York, New York WILLIAM STERN President, Dakota National Bank Forgo, North Dakota LYMAN E. WAKEFIELD, JR. vice President, First National Bank Minneapolis, Minnesota ALBERT J. WEATHERHEAD, JR. President, The Weatherhead Co. 300 E. 131st Street, Cleveland, Ohio AVENUE, ST. PAUL 1, MINNESOTA NORTHWEST AIRLINES , (NC 1885 UN I VERS I TY A V ENUE ST . PAUL I , MINNESOTA Februa ry --+. I 95Q TO OCR STOCKHOLDERS: In 195 your Company continued it progre and a compli hment at an accelera ted ra te . . orthwe t Airlines had record r Yenue a pproxima ting 102.000.000. an increa e of _2 per cent over 1957. t the ame time operatino- co t increa e wer controlled o that the income before taxe and property di po al. and the net profit aft r taxe were th e highe t in the Compan ,'s hi tory. The income. before taxe and property di po a I. wa 10.651,000, an increa e of more than two and one-half tim e th e l 957 comparabl e fi o-ure. The net income for the yea r ,,a $5.614,000. an increa e of 16.5 per cent onr 1957: however. 1957 includ ed profit of 2.929.000 from the dispo al of property. a compared with only 62 .000 in 195 _ The amount of gro revenu e carri ed throuo-h to income. before taxe and property d i po al. and n et profit place :\'orthwe t Airline among the leader in the . S. tra n port indu try on a comparative ba i .. Your Company flew l,-+0 743 .000 re,enu e pa senger mil during the yea r, a gain of 17 per cen over 1957. I\orthwe t' 195 revenue pas enger mile total for the dom e tic route ''"a up 17 .5 per cent. It was the first tim e in :\1 orthwe t" 3- -yea r hi tory that it generated more than a billion revenue pa eno-er mile on it dome tic ystem in a ingle ea r. Internationally. , orthwe t fl ew a record total of 297. 80,000 re,enue pa enger mile in 195 . up 14.7 per cent over 1957. The increase in the volume of m ail. expre sa nd freight were very o-ood. The fin ancing program for the acqui ition of Douo-la DC- pure-jet and Lockheed Electra pro p- jet airplane wa complet d. Contract w ere completed with the manufa cturer for five DC-8 and ten Electra . The e initial purcha e prepare :\Torthwe t for the jet era . The purcha e contract provide that fourteen pi ton-type airplane will be 'trad ed-in or old to the two manu- facturer a the new jet equipm ent i received. ;\"orthwe t' ca h generation from th e .. trade-in" will approxima te 10.-31.000. The fa ct that :\1orthwe t fin ali zed the jet purcha e contra ct in 195 . rather than two to three year ea rli er as wa don e by other m ajor airline-. ha re ulted in certain benefit to our Company. Korth,Ye t ha rea liz d a ub tantial aYing in intere t co t on the down paym ent it would have m ade if th e equipm ent had been ord ered ea rli r. Another ub tantial am ount of money ha been a,ed on th e interest for progre s payment . :\Torthwe t ,vill receive ad,anced-de ign version of the DC- and th e Elec tra : both airplane will ha,e impro, d fu el tank ca pacity OYer the original de ign now being manufa ctured. The ten Elec tra will be deli,ered during the period July- December 1959. Pre-inaugura tion training i goino- forward a nd thi - fleet will be in operation thi year on a tim ely ba i _o that tra ffic di,er ion will be nominal. The fiH DC- will be delivered during the period March- eptember 1960. The fir t advanced-de io-n er ion of the DC- will be deli,ered to :\'orthwe t in . larch 1960-a pproximately JOO day follo,,ing the delivery of the fir t certifi ca ted DC- with the J-75 jet engine. The DC- will be in ervice on the long- haul routes of :'\orthw t in the econd quarter of 1960. The tim e pacing between th e intro- duction of the t,Yo different jet fl eet m ake for the mo t ord erly and economical tran ition. On December 6. 19-5 your Company beo-an operation on it new route bet,veen ::vlinnea poli / t. Paul. ilwaukee and Chicago to T.ampa. t. Peter burg/ Clearwater and . Iiami. Thi new route extension will do much to correct the probl em of ea onal imbalance ,vhich ha existed for a long time, and to reduce the fir t quarter lo e experienced by >.orthwe t in the pa t. The additi onal aircraft r quired on th Florida route durino- the winter vaca tion month will be tran ferred to the northern tran. continental route during the pea k traffic umm er m onth . 1959 ,,ill be another yea r of good o-rowth fo r :'\orthwe t Airline . The revenue from the ne" Florida route will be reflected in the re ult for the entire yea r. The entire fleet of ten -1-00-mile- an-hour Lockheed Elec tra will be int egra t d into the dom e tic route y tern to further improve en-ice to the m ajor citie . . orthwe t " ill continue it program of impro,ed air en ice which h a, been well received by it cu tomer . v\'e are o-ra teful to the tockholder . customers and employee of :'\orth,,e t . .\irline. for heir continued up port durino- 19- . Annual Report to Stockholders EARNINGS Profit for the year 1958, after taxe v;a 5;613,687. or 4.06 per hare of common tock out tanding, com- pared with a profit of 4 818 971; or $3 . .56 per hare on fewer out tanding common hare in 1957. The e figure includ profit on di po al of property and equipment, after taxe ; of 627,5'"4 in 1958 and $2,929;095 in 1957. REVENUES Operating re,enue reached an all-time high in 19.58 of 101 957)72, 22 % abO\e your Company' previou peak year 19.5 7. Pa enger revenue in 19.58 also reached an all-time high of $81,115,900, an increa e of 22% over the 1957 total of 66,674 383. . mail revenue increa ed 22 c to 9,264 889 while foreign mail revenue increa ed 26 o to 963,319. Expre freight and exces baggage re, nue wa 8,667,510, up 15 c . Charter and other transportation re,enue ro e to 1,945,554. Many factor account for the ub tantial gain made by your Company in 19.58. Improved pa enger ervice and the fir t full year of ' Imperial ervice" increased public acceptance of our en-ice. The addition of more modern Douala DC-6B and DC-7C equipment provided greater capacity and expanded chedules. Added re,enue al o wa aained from the fare increa e granted b-~, the Civil Aeronautic Board and, during December from our nev, route to Florida. Another factor wa the continuing improvement of your Company' aggre ive program of ale , adnrti ing Gleaming hotels stretch northward along Miami Beach , one of the nation's finest winter vacation areas, now served by Northwest Orient Airlines. OF NORTHWEST AIRLINES, INC. and promotion to timulate not only bu ine s tra,cl, but va ation travel on a year-round ba i . Thi program emphasized Hawaii and Florida and, with Ala kan tat - hood a reality, called attention to th 49th State as a prime vacation area. All of these factor enabled your Company to lead the U. . aviation indu try in percentage increase in revenue pa enger mile flown in 1958 over 1957. During 1958 your Company flew 1,408,742,516 rev nue pa sengcr miles, a 17% increase over the 1.205. 764,597 rev nuc pa enger miles flown in 195 7. EXPENSES Operating expen e increa ed 1.5 % to $89,918,822 in 1958, compared with $78 448,916 in 1957. Although, a. in 195 7, co ts of labor and material ro e harply, depreci- ation charge increa ed 57 %, and available ton mile flown increa ed ub tantiall , your Company again reduced unit expen es through efficient operation and careful cost control. During 1958 the co t per availaLle ton mile decrea ed to 25.82 cent , a reduction of 6% from 27.43 cent in 1957. CREDIT AGREEMENTS Bank A greement- The Credit Agreement dated as of ovember 15, 1956 wa liquidated on December 30. 1958 and replaced by a new Credit Agreement dated a. of ovember 28, 1958 and effective on December 30. 1958. The loans out tanding under the Credit Agree- ment dated a of November 15 1956 in the amount of 34,250 000 were paid in full out of the proceed of loan from insurance companies. The new Credit Agree-- ment is with a group of fifteen bank . Banker Tru t Company ew York, i the lead bank. Under the new Agreement, the Company may borrow to a maximum amount of $32,500,000 through J une 30, 1960. The note i ued bear a final maturity date of December 31. 1965. Your Company i obligated, howev r, to make payment thereon at the rate of 6,000,000 per year com- mencing in 1961 ($8,500 000 in 1965), with 25 % of the annual payment being payable on each .June 30 and De ember 31, and 50 o on each September 30. In addition to the annual payment in the event cumulativ net earning plu flight equipment depreciation after .January 1, 1958 exceed certain tated dollar amount . the Compan i obligated to make additional payment. to a maximum of 3,000 000 on each June 30 in the year 1961 1962 and 1963, and a ma,-ximum amount of 4,000,000 on June 30 1964. If the maximum additional payment are made on each J une 30. the loan will be fully liquidated on J une 30, 1964. The commitment fee on the unu ed balan of the credit to and including June 30, 1960. i at th,., rate of one-half of 11c per annum. Intere t on out tanding loan i at the rate of 4% up to and including J une 30. 1960. and at the rate of 4% thereafter. There have been no borrowing again t thi o-reem nt a of the dc1 te of thi report. Insurance Com/Jany A areemenl-As of ovember 28, 1958, your ompany al o ntcrcd into a long-term redit arrang ment with a group of twclv in urancr com- pani s. The total amount available under this Agre - mcnt is $40,000,000 against whi h $34-,250,000 had 1 n borrow cl as of D ecemb r 3], ] 958, and th - balanc on January ] 5, ] 959. AmorLizaLj n payments will com- rnenc jn O tobcr 1966, with fin al payment due O Loi er 1, 1978. NET WORTH Th ' nc;:L worth of Lhc Company al th end f J 958 was $4-8,224-,344 of whi h $26.77 p 'r share was app licable Lo each of the 1,373,620 shares of ommon stock ou L- slanding as of December 31, ] 958. This compares with a net worth of $33,065,292 at th end of J 957, of whi h $24.05 p r share was applicabl' to each of the ] ,34-3,120 shar s of common stock outstanding at D ec mb r 3], 1957. Earned surplus was $16,560,267 at the end of 1958, compared with $12,057,070 at the end of ] 957. DIVIDENDS AND STOCK CONVERSION R egular quarterly clivicl nds of $.20 a shar w r paid n common stock on February ] , May 1, August l and ov mb r ] , 1958. A similar clivid ncl also was paid on F bruary ] , ] 959. Divid nds on the 4.60% Cumula- tive Preference tock w r paid regularly on quarterly clu dates. A final dividend was paid on this stock c;ulslanding as of ovember 26, 1958, covering the last Lwo months of the y ar, at which time all of th re- maining 26,195 shares of the original issue of 390,000 shares were call cl. In D cemb r ] 958, your Company offered to the public 457,873 shares of $25 par value 5 o 'onvertible Cumulativ Pref rr cl SL ck. 'xisLin~ slockhold rs suh- scrib d 98% of the issu , and your Company re -~v cJ net pro ceds of $1J,011,337. ROUTES Domestic n D c ,mber , 1958, yo11r 1ompany b ga n perating its n w Flori la ro11L , providing the first through-plan, s rvi c- I etwnn ScaLLle/Ta oma, Minn apolis/, 'L. Pau l, Milwauk c and oLh r norlhw 'SL cjLi s on th, n hand, and T ampa, SL. P Lcrsbur / Clearwat r and Miam i on th, th r. Initial Lraffi r spons has clcmonslral cl thaL this major route addition h Ids gr al promise for in creased rev nu s and a mor fav rablc s as nal balan in th Corn pany's Lra!Ti . The: present FJ rida c rLificatc re 1uir and between Seattle/ Tacoma and Ne\, York. Durina 1958 contract \,ere awarded for the con- truction of the major portion of the new O\erhaul> operation and headquarter facility at I\ old-Chamber- lain Field> and ,,.-ork i on _,.hedule ,,ith occupancy of J-75 jet engine ready for fina l inspecfion of the Praff and Wh itney facfo ry. The J-75 , larger than the J-57 , will give Northwest's DC-Bs added powe r and performance. Phenomenal growfh-fypical of Florida-is i!lusfrafed in fhis aerial view of Sf. Petersburg. The cify now sfrefches from Tampa Bay (fop) fo fhe Gulf of Mexico. Dredged fi lls (foreground) rapidly are filling wifh waferfronf homes. maintenance and merhaul areas planned for October of this year. Th General Office building now under design will be under construction by mid-summer and, when completed in 1960 will permit consolidation of all Twin Cities operations at the new location. Careful pace planning and election of building material have produced ubstantial contruction saving . An agreement with the Port of Tew York Authority ha been executed, an architect selected, and the design i in progres for a terminal facility at ew York Inter- nati?nal Airport which will be shared with two other earner. PERSONNEL The excellent progress made by your Company during the year 1958 wa due in large mea ure to the devoted effort of Iorthwe t killed and loyal employees. In Norfhwesf 's strikingly handsome Miami sales and fickef office is an im portant archifecfural addition fo that city's downfown area. If is located in the new First National Bank building af 300 Southeast First Sfreef. 1958, as in the past several years, the turn-over rate for all employees was far below the separation rate for industry in general and lower than the average for the air transportation field. Of the total employment 6,081 employees were located in the United States and Canada. Over 90% of the 414 employees assigned to overseas stations were foreign nationals. Although the industry experienced a number of pro- longed work stoppage , Northwest reached amicable collective bargaining ao-reements with all segments of its work force without loss of a single man-day due to labor disputes. These contracts provide for rates of pay, rules, working conditions and fringe benefits in line with other carriers of comparable size, and orthwest con- tinues to maintain and improve its relations with its personnel. Tampa's International Airport is one of the finest in the nation. Terminal was enlarged during pasf year fo handle increasing traffic out of th is im portant Florido indusfrial and vocation city. STATEMENTS OF INCOME NORTHWEST AIRLINES, INC. Year Ended December 31, OPERATING REVENUES 1958 1957 [~~i ~;dgc\~ ~ ~ .1 . ;1;; i::: :: : : : : : : :: : : : : : : : :: :: :: :: : : :: : : :: : ::: :: : : : : : : : : ::: : : : : : :: :: :: : : : : : : ::: : :: : : :: : : ::: : : : : ::'l F reign ma ii ..................................................................................................... . E:--.:c , bag_;ag .............. ......... .................. .................................... ...................... . Freight and xpr s, ......................................................................................... . Ch rt r and oth r tr. n~ I ort tion ................................................................... . Other .................. ............................................................... ............................... . OPERATING EXPENSES flying tion_ 'l _9,7+7 .029 !\ ' 1t 17.089. 70 P 1 \ic ........... .... ............................................................................... .0,),).9_9 . \ a traffi \icino-.. .......... ............................................................... 12.-07 .2 ~9 R n , ale. \. rti, ine>.................... .............................................. 10.75,).+89 Admi an ,d. ............................................................................. 5.5 7 ,).O_ l Prc)\is r dep n. 1 __ amount harg d to oth r account 29,, _- 1 ->8, 'l 7- l "7 ................................................................. .. 'l l 2.0 8.3 0 OTHER DEDUCTIONS AND INCOME Tnt r , t on lonrr-tcrm debt. ............................................................................. l,+18.715 th r incom . I mi,c lbn ou. dcdu tion ........... .................................... 3 1.-+98 INCOME BEFORE TAXES AND PROPERTY DISPOSALS ............ 10. l,Lu TAXES ON INCOME (in ludinrr d err d l , :-.:cs '.1.98-1.550 1958. " 1.7 0,000 1957. ari ing from a 1 rated dq rcci;1tion m thod,) ...... 1.1 5.000 NET INCOME FROM OPERATIONS....................................................... ~-9 1.1 :n PROFIT FROM DISPOSALS OF PROPERTY, I .-_ applicabl in- come laxc, 200.000- 1958. 312.2 10- 19 7............................................ _7 .55~ NET INCOME FOR THE YEAR ................................ 'l s. 13.687 c, notes to (i 11a11 cia/ .,tat c111 e 11t . .39_ .l+l .8o- .88,765 70)50,736 OTHER EQUIPM ENT AND PROPERTY at cost .................................. $ 15,728.646 I.rs all0\, anrf' for ckprr-,iation.................................................................... :J.9 l 2.'1~H $ 5,H l ,3 12 DE FERRED CHARGES narnr,rti/rd trainiwr and , '7 ,222,224 LIABILITIES AND STOCKHOLDERS1 EQUITY December 31 , CURRENT LIABILITIES 1958 1957 Acrnunts payahk, collc;cliom as agr-nt, etc .................................... ., ............... $ Salaries, wag s and va a Lions ........................... ........... ................................... . Air travd ard drpfJsits ................................................................................... . nredc::erntd Lick<;t liability ...................... ... ............. ....................................... . fncornr taxes cstirnatcd ............ .................. .................................................. .. TOTAL CURRENT LIABILITIES LONG-TERM DEBT , ote A 9,TH ,51F3 3,77''.i,fJn2 1, 164,, 5()() 1,0'1-H,600 2/J6(J,6 I > >% notcs payable to ins1 1rance cornpanics .................................................. $ ~H.2S0.(J(J(J 4 o/c. notes payabl to banks ................................................. ...................... . DEFERRED INCOME TAXES arising gcncra lly frorn accrl('ratcd drpr<< i,J tir,n rnrthr1ck ....................... $ ::i.2(fj.()(J() STOCKHOLDERS' EQUITY -. l < in sr rirs: 51/4.o/r '% Sr-rir<; ''.i(J,S2 7 shans ( rrdrrrnrd dw ing 1918 ; .... : .. ......................................... .. Cc1rnrn.................................................................................................. l r,,)f,(J)f-';7 COMMITMENTS AND CONTINGENT LIABILITIES See 11oter lf) finan cird .statnnent c $ a, 111,099 ''.i 13( ,l) I , l 21 ,'J7S 7)9>,5 17 1,72H, 1~1 ~ 27/J()(J.()()() ~ l .2f';(J,(J(J() I '1,'1 '1 1,2()() t>.H f '1.M 7 I 2JJj7/J7(J $'11.(Jf/i,292 . 7(,,222.224 STATEMENTS OF SURPLUS NORTHWEST AIRLINES, INC. Year Ended December 31, CAPITAL SURPLUS 1958 1957 Balance at beginning of year ........................................... .' ......................... ..... $ 6 813,847 Additions (deductions ) arising from: Sale of shares of Common Stock under option agreements in exces of par value .............. ............ ........ ..... .......... ........................................... . Redemption of shares of 4.6% Series Preference Stock. ......... ... .... ......... ( Cost of issue of 5 % Convertible Series, Cumulative Preferred Stock .. ( Transfer from earned surplm to restore deduction in prior years for part of dividends paid on 4.6% Preference Stock ... .. .. ...... ................ .. . 109,188 6,495 ) 435,488 ) Balance at end of year ........................... .. .. .......... ........ ......................... ........ $ 6,481,052 EARN ED SURPLUS Balance at beginning of year- ote F ........ ........... ................ .... .......... .. ....... $12,057,070 Add net income for the year.. ......... .................. .. .................. .. .......... ............. 5,613,687 $17,670,757 Deduct: Ca h dividends on: 4.6% Preference Stock- $1.3417 a hare in 1958, $1.15 in 1957 ...... $ 36,003 Common Stock- $.80 a hare ... ............ ........................... ........ ............. . 1,074,487 $ 1,110,490 Transfer to capitttl surplus- ee abo\'e ........ ......... ....... ... ........................ .. . $ 1,110,490 Balance at end of year. ...... ..... ................................ ............ .. ................... ..... $16,560,267 To the Sto ckh olders and Board of D irectors orthw est Airlines, Inc. Saint Paul, Minnesota S ee notrts to finan cial statem ents. ACCOUNT ANTS' REPORT $ 6,246,750 3 187 3,285 560,625 ' 6 813,847 $ 8,915,549 4,818,971 $1 3 734520 $ 42 345 1,074,480 $ 1,116,825 560,625 $ 1 677,450 '12,057,070 We have examined the financial statements of orthwest Airlines, Inc. for the year ended December 3 1, 1958. Ou r examina tion was ma de in accordance with generally accepted auditing standards and accordingly included such tests of the accounting records and such other auditing procedur~s as we considered necessary in the circum tance . \Ve had made imi'ar examina tions for preceding year . In our opinion. the accompanying statement of financial position and statements of income and surplus present fairly the financial position of orthwest Airline . Inc. at December 3 1, 1958 and the results of its operations for the year then ended, in conformity with generally accepted ac ounting principle applied on a ba i con istent with that of the preceding year. Furth r, it i our opinion th at the five year summa ry of income present fa irl y the informa tion ta ted therein . Saint Paul, Minnesota February 13. 1959 ER ST & ER1 ST Certified Public A ccountant 1 NOTES TO FINANCIAL STATEMENTS NORTHWEST AIRLINES, INC. December 31, 1958 ote A-Long-Term Debt For the purpose of equipment financing (Note E) the Com- pany, a of ovember 28, 1958. entered into l ote Purcha e greement with twelve insurance companies and a Bank Credit Agreement with 11.fteen bank . The ote Purchase Agreement provide that the insurance companies will loan the Company $40.000,000 ( of which $34,250,000 wa taken down in 1958 and $5,750.000 on Janu- ary 15, 1959). The note are payable $3,000,000 annually beginning O ctober 1, 1966 with the balance of 4 000,000 due October 1, 1978. Certain optional prepayments at par are permitted. The Agreements contain other provision with respect to redemption as a whole ( but not from borrowed funds) at premium ranging from 7% to 1 %. The Bank Credit greement prO\ide for a loan to the Compan of $32,500,000. on a revohing credit basi through June 30 1960 at 4% and thereafter as a term loan <1t 4%. The loan i pa\able $6 000.000 annually in -years 1961 through 1964 and $8 500,000 in 1965. The . greement may require additional inking fund prepayments ba ed on income of the Company. The Company has agreed, among other thing . it will not permit (a) its working capital at any- time to be le than certain specified amounts (excess amount approxima ted $6,810,000 under the mot re trictive provi ion of the Agree- ment at D ecember 31. 1958 ): and (b) it funded debt to ex- ceed certain percentages of net tangible a et , net worth. and depreciated value of flight equipment. ote B-5 % Convertible Cumulative Preferred Stock This tock eri s has ,oting right : i entitled upon olun- tary liquidation to $25 a hare plu a<;cumulated unpaid di,!- dend ; i convertible on or after . pnl 1, 1959 on the baSIS of 25 a Preferred hare into ommon tock at a conver ion price of 26 a hare, subject to _adju tment i_n certai1; event and i redeemable a a whole or 111 part at pnce rangmg- from $27 a har before January 1. 1960 to $25 a hare ;ifter D e ember 31. 1973. togethrr in each case with ,iccrued dividend . otc - R trictions on tockholder Equity Th 1 'ote Purcha e . greem nt and the Bank redit gree- nwnt e tabli h an aggregate dollar maximum for the declarn- tion and payment of ca h divid nd on Common to k. and for the di tribution on. redemption. purchas or other acqui i- tion of hare of any cla of apital tock. . t Decf'mber '31, 1958 approximately 4,794,000 of earn d urplt1. wa available for