The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1899-03-07
TERMS or CORNER.
For Sl0,000,O00 Securities
100000 Cash -Sl7-
100000 Four per
cent Bonds.
ELECTRIC COMBINE ORGANIZED
Election of Officers Today in
-Newark-Limited Stock
Offered
fspeclal 70 ..rhe Jersey city News."l

Especial 10 Inc Jersey CITY News.
NEWARK. March z, 1Ss9-The United
Electric Company of New Jersey, which
was Incorporated last Saturday, with au-
thority to issue $40, 900, 600 stock and $40,
! 000, 900 bonds, p~erfects its organization in
this city today. so far as the election OF
officers and directors are concerned. b.
M. Stanley, president of the Essex and
Hudson Gas Company, and Philip N. jack
son, president of the Peoples Light, Heat
and Power Company, have been mention
ed for president of the new concern, but
their interests in other corporations oc-
cupy so much of their time it is not prob
able that either will accept.
In tina event the President of the new
company will be some one closely identi-
fled with the United Gas Improvement
Company of Philadelphia. The latter con-
Germ is the prime mover in the new COM
pany, and with its Incorporation complete
the Philadelphia concern will have abso-
lutte control of all the gas and electric
companies north of Trenton, the same as
it has at present of most of the companies
south of that city. The companies to be
absorbed by the new company are:-The
Peoples Light, Heat and Power Company
of this city, North Hudson Electric Light
and Power Company of Hoboken, and
Consumers Light, Heat and Power Com
pany of Elizabeth.
These companies at the present time
control practically all the electric light,
heat and power companies of North Jer-
sey and their amalgamation means a
consolidation of all their interests.
The Peoples Company has an author
lied capital of 500, 600, 900, of which only
IS, 900, 900 has been issued and it has no
bonded Indebtedness. The basis on which
its stock will be absorbed is payment of
$175 par value of the four per cent. bonds
of the new company for each $1o0 par
value of the Peoples stock surrendered,
together with a cash paymen equal to
twenty per cent. of the par value of such
stock.
In other words, each holder of $1,000 par
value of Peoples stock by s~urrendering
the same and paying $500 additional will
receive 81, $50 in four per cent bonds of the
new company.
In addition thereto he will have an OPP
ton to purchase $3.50 worth of stock of
the new company, par value, for $75, or
at the rate of $50 a share. Each holder
of 500 par value Peoples stock can, by
surrendering the same and making a cash
payment of $3.50, receive SITS bonds and
$25 stock of the new company. AS the
stock of the Peoples Company is now
selling at 1892 per 800 par value, the stock
surrender and cash payment would mean
a net profit of $4,000 on each 500 par
value of Peoples stock surrendered, pro-
vided the new stock and bonds maintain
a par value.
The Hoboken company has a capitaliza-
ton of 100000 and the Elizabeth COM
pany 81, 900, and a combined bonded in
debtedness of a like amount. Because of
the latter their stock valuation Will be
reduced one-half. or to 81, 800, 0o0, making;
with the bonds, a total of 1850, 600, and
that amount will be paid for on a basis
similar to the price paid for the Peoples
stock. Assuming that all the stock and
bonds of the three companies will be
transferred to the new concern the net
amount of bonds issued in return will be
ST., 5000 OF this amount So. 625. 600 will be
pany and s7,S75. 900 for the Hoboken and
Elizabeth concerns. The entire $40, 600, 600
authorized will be issued and s.: 100000 will
be Held in the treasury or sold for adj
ditional purchases or extensions.
In addition the new company will have
81, 000,0 900 cash received in connection with
the transfer of stocks, or, in other words,
for the SIT, 500, 900 bonds issued the COM
pany will receive 81, 600, 900 cash and $40, 000,-
600 par value securities of the old com
panies. Should the old stockholders exer-
else the option to purchase an amount of
stock equivalent to twenty-five per cent.
of their holdings at $50 a share, it would
mean a further payment of $3.50, 900 into
the new company's treasury. Articles of
Incorporation of the new concern were
filed both at Jersey City and at Trenton
yesterday morning.
Vice President Carrot A. Hobart spent
the day in this city looking after the pre-
liminary details of the organization of the