The San Francisco call., 1896-09-11
Organization of the San Fran
cisco Gas and Electric
Company.
CAPITAL, TWENTY MILLIONS.
Allotment and Reservation of the
Shares Now to Be ISsuei With.
out Exchange.

A meeting of the directors of the San
Francisco Gaslight Company was held
yesterday afternoon at the Office of the
corporation on First street. A notice has
been published calling for a special meet
ing of stockholders on Monday, October
g. The purpose and object of the meet
ing is to consider and act upon the propo
sition to diminish the capital stock of the
corporation from $4,000, 900, divided into
10000 shares of the par value of 500 each,
to $500, 600, divided into 100000 shares of
the par value of So each.
The steps now taken to diminish the
capital stock of the company without re-
ducing the number of shares will be
understood when the details of the con-
solidation with the Edison Light and
Power Company are considered.
From a circular letter which the presi-
dent, Joseph B. Crockett, has addressed to
the stockholders the following extracts are
made:
For some time past there has been
sharp competition in the lighting business
between the San Francisco Gaslight Com
pany and the Edison Light and Power
Company The boards of directors of the
two com panies, realizing that possibly in
the future this might lead to serious loss
TO both companies, and that the business
of furnishing light and power should be
controlled by one management, and thus
effect large saving in the general man.
agement, establish more uniform rates
between gas and electricity and in many
other ways curtal expenses, have deemed
1t advisable to form new CONF mpany, to be
known as the San Francisco Gas and
Electric Company, and to transfer to this
new company all the property of the other
two"
Mention Is made OF the patient investi
cation of the affairs of both companies,
the exporting OF the books and the inspec-
tion of machinery and this general plan
OF consolidation is recommended.
1.-The new company, 10 be formed from
the other two companies. to be called the
San Francisco Gas and Electric Com
pany, capital stock $40, ,000, 600. of which
100000 will be issued 10 the stock
holders OF the San Francisco Gas Light
Company, 81, 750 900 to be issued to the
stock holders of the Edison Light and
Power Company and ST. 066, 666 to be placed
in trust in the hands of = trustee selected
by the directors of the new company
which said stock is to be placed in escrow
for the purpose of redeeming the out
standing bonds of the Edison Light and
Power Company. All the remainder OF
the stock is to be held in the hands OF the
company, and VIII not be issued unless
necessity REQUIRES the same for the en-
largement, extension or improvement of
the plant"
1t seems that when certain bonds of the
Edison Light and Power Company were
issued the holders were given an option to
exchange the bonds for stock within a
period of ten years Five years time has
elapsed, but during the next five years
some OF the bondholders may elect to
take stock, hence the reservation OF ST.
066, ,666. The unissued stock, amounting
TO $6, 183, 334 may be issued In the
future should the expansion of the City
require an enlargement of the plant and
extension OF lighting facilities.
The San Francisco Gaslight Company
having but its current monthly debts to
pay could dlsincorporate and go out of
business, but as there are real estate and
other assets, such as the property at the
foot of King street, remaining in the cor
poration 1t will not disincorporate, but
will reduce its capital stock to $780, 900,
which is sufficient to carry the real estate
unsold. The stockholders will formally
consider this proposition at the meeting
on October 26.
President Crockett's circular to the
holders OF the stock OF the gas company
says: ut will be necessary for all the
stockholders OF the San Francisco Gas
light Company to surrender their present
stock and TO receive in exchange therefor
an equal mum ber of shares OF stock of the
San Francisco Gaslight Company repre-
senting the real estate interests, the pal
value OF which will be So per share, and
also to receive the same number of shares
OF the San Francisco Gas and Electric
Company"
The president holds that with econom-
ical management the new company will
be able to earn and pay fair dividend
and gradually be able to reduce the price
OF light to the consumer.