The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1899-03-08
BIG ELECTRIC
COMBINE.
United Company Will Alb
sorb AlltheC Corporations
in Hudson and Essex.
PROPOSITION TO THE PEOPLES co.
New Corporation With {
Capital Of 500, 900, 900
to Control Northern
New Jersey Concerns.

New Jersey Concerns.
A meeting of the promoters OF the
United Electric Company of New Jersey,
was held yesterday in the office of the
Essex and Hudson Gas Company for
the purpose of furthering the details OF
the big combination, which will absorb
the electric lighting and heating interests
in this section of the State. Vice Presl-
dent Carrot A. Hobart and Randall Nor
gan, who is said to have helped to en-
gineer the deal for the capitalists behind
the United Gas Improvement Company,
b. NJ. Stanley, A. B.. Carlton, of Eliza
beth; Uzal H. McCarter and J. E. HUI
shizer were at the conference.
Mr.. McCarter represented the Fidelity
Trust Company and Mr.. Hulshtzer acted
in a similar capacity for the New Jersey
Title Guarantee and Trust Company.
These two companies will receive the
stock OF. the selling concerns on deposit
and give receipts for the same.
The general details of the combine were
expressed after the conference in the fol-
lowing statement
THE Peoples Light and Power Com
pany has a capital stock of S, 900, 900. The
per cent additional stock at par, giving a
total capital of $500, 900. They have been
notified that they must put up twenty per
cent. in cash to participate in bonds at
Sis on the 500 or 81, $50 of four per cent.
bonds at par for 1000 worth of stock, with
the twenty per cent. assessment upon it,
they will add to each 81 600 stock 1920 in
cash. For this they will get s1,925 worth
of four per cent. bonds. They will also
have the privilege of subscribing for stock
of the United Electric Company at thirty
cents on the dollar on a basis of twenty
five per cent. of their holdings in the stock
of the Peoples Company.
LAS the United Electric Company in
tends issuing SIT, 800, Geo worth of bonds at
four per cent. the Peoples Light and Pow
er Company will get for its property plus
the payment of 81, eco, 900 by the stock
holders, ss,625, COO worth of four per cent.
borGs.
1.-The Hoboken Electric Company and
the Elizabeth Electric Company will get
the balance, or 81. 1925, COO worth of bonds
for two plants hat ave just been enor-
mously watered and that are unable to
pay more than fixed charges on bonds.
These will be unloaded for almost as
much as the PEOPLES Light n Power
Company get for a concern that had no
bonded Indebtedness, and that, it is I'M
derstood earns between sewn and eight
per cent. annually.
'.The bonds of the Hoboken and Eliza
beth companies have been selling for 500
and the stock, which pays no dividends,
at. $50 on the $100. The Peoples Light
and Power Company's stock has been
selling readily at s132 on the $500, based
largely on its intrinsic alu If a person
bought 81, 600 worth of Peoples Light and
Power Company stock at S132, to partici-
pate in the four per cent. bonds of the
United Electric Company he would be
obliged to pay a subscription of 1920, or
to get $1,925 worth of bonds would be
obliged to give up 81, $40. As the Peoples
Light and Power Company's stock has
been paying five per cent. n earning
between seven and eight per cent, it
would most reasonably follow that $1,64O
invested in the company now should ulti-
mately get a return of at least five per
cent, or $50. The s1,925 worth of bonds
at four per cent will pay only ST."
The basis of the proposition of the
United Company to the Peoples is that
after the issue of the $500, 900 of new stock,
an offer will be made by the United Com
pany of 81, $50 worth of it's bonds for each
81, 900 worth of the Peoples stock surren-
dered with a cash payment of 5000 in adj
dition. Each stakeholder will also have
the right of buying an amount of the
stock of the United Company at $50 per
share. equal to al. least % per cent. of his
present holdings of Peoples stock.
The $500, coo raised by the issue of adj
ditional Peoples stock will be used to
purchase new electrical apparatus for
that company and erect a new building
on it's property on the river bank in this
city, as recommended by the executive
committee and approved by the directors
Some of the money will be used on the
Jersey City and Orange plants.
Though no vote was taken on the propo-
sition 1t was the prevailing sentiment ex-
pressed informally at a meeting of the
directors of the Peoples Ligh and Power
Comapny Monday afternoon that the
offer of the United Electric Company OF
New Jersey to buy out the former cor
poration should be accepted. h terms
proposed by the new combine are briefly
that for the surrender of every $1,000
worth of stock at par and upon payment
of twenty per cent. additional the holders
were to receive 81, $50 of gold, four per
cent. ffty-year bonds of the recently Or
gained company.