Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1889-01-03
MUST GET A MILLION.
A High Director of the CHARTERS Gas
co. Tells Great Secrets,
EXPLAINING A COMING MORTGAGE.
Only 100000 of That Extra 81 900, 900 in
Stock Was Marketed.
THE OTHER 100000 In THE TREASURY

The CHARTERS Valley Natural Gas Com
pany has issued a legal notice for meeting
of the stockholders of the company to be
held in this city March 6. The object of
the gathering is to consider proposition to
issue 81, 100000 in bonds to pay of the in
debtedness of the company.
In view of the heretofore supposed practi-
cal consolidation of the Charters Company
with the Philadelphia Company, the notice
Of the meeting caused surprise among some
people who heard of the call. The fact of
the Philadelphia Company mortgaging its
plant for 50, SOC, 900 few weeks ago height
ened the effect of this feeling.
For the purpose of ascertaining just what
the CHARTERS Company meant by issuing
bonds when they had consolidated with the
Philadelphia Company, a prominent Char
tiers director and a gentleman who is in
position to know the facts in the case. was
interrogated by a DISPATCH reporter last
evening. He said:
The majority of the people in this city think
that the CHARTERS Valley Natural Gas Com
pany consolidated with the Philadelphia Com.
pany This is not true. We have not CONSOLE
dated, and the Charters Company is Just as
much of a separate company to-day as it ever
was. We only leased our lines to that COM
pany and are paid so much per
annum as rental for them.
For giving the Philadelphia Company our
gas and allowing them the use of our lines, we
receive 80 per cent of the net revenues of both
companies. The Philadelphia Company does
not control our organization. and the only
thing they have to do with the CHARTERS Com
pany is the use of our lines They count up
their net receipts each month, and, after de-
ducting 70 per cent, give US the remainder.
Now to get at the reason for the issue OF the
s., ,0O0, 600 in bonds. About the latter part of
1857, the CHARTERS Company COM
pleted new line from the Murrysville field to
the Lawrenceville district. This line is the
largest in the world, and consists
of one 30-inch and one 2-inch
main. This cost US between 100000 and $780,
600. including the rights of way. etc. At that
time we issued 81 0O0 900 worth of extra stock to
pay for this work. 1t was impossible to get
ldlE Price IOI Tue SJOCk at Tue blLuo, oWlfiS W
the condition of the market and we sold but
sl00, 600 worth. We were left with $4,000 of
stock on hands. and we had to hold it in the
We still hold this stock.
THE EASIEST WAY OUT.
To pay off the floating debt. for the new lines
and other expenses, we now propose to issue
B, ,0OO, 600 worth of bonds. These bonds we ex-
pect to pay off out of the revenue received for
the rental of our lines, from the Philadelphia
Company. AS this revenue will amount to con-
siderable we not only expect to pay off the
bonded debt but also renew the paying of cash
dividends.
We did not stop paying dividends until July
asst, although the lease was consummated in
1855. We expect to be in good finan-
,ial shape again, and will pay dividends as soon
is possible.
By paying of the Indebtedness of the COM
,any we expectto put it in good financial con-
iition This will not only help US, but will also
trengthen the stock of the Philadelphia Com
,any. Our stock has advanced from $50 to S57
YER share within the past three days. This is
titfening up the Philadelphia stock Thelat-
er is advancing upon no other account.
You can say khat this is the inside history Of
he company, And am ready to back up what
have stated at any time. The proposed issue |
# 81, 600 600 worth of bonds Is for no other pur-
'ose than to pay off the floating indebtedness. |