The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1899-03-09
ELECTRIC
LIGHT DEAL.
Opposition to the Sale Of
Stock Of Peoples to Uni
ted Companies
PROMOTERS ANNOUNCE PLANS
Smaller Plants Will Be In
creased and Cost of Light
Will Be Reduced-Jer-
sey City Stock.
PROMOTERS ANNOUNCE PLANS

New Jersey have been printed and some
of them ave been delivered to the OIL
GERS of the company. A meeting OF the
promoters of the company began at three
O'Clock yesterday afternoon, at the offlce
of B. NJ. Stanley, president of the Essex
and Hudson Gas Company. The con-
tracts with the New Jersey Title Guar
antee and Trust Company of this city
and the Fidelity Trust Company of New
ark were signed. Both companies Will
give collateral trust bonds to the deposit
ors of the stock of the various CONSOLE
dating companies.
The taking in of stock by the new COM
pany will begin tomorrow morning if the
contracts are signed this afternoon, and
no doubt is expressed but that they will
be.
The meeting yesterday, which was con-
tinued until late in the afternoon, was
for the purpose of considering what form
of receipts or trust certificates shall be
given. The agreement, also, to be reach
ed between the United Electric Company
and the United Gas Improvement Com
PAM of Philadelphia in regard to the
trust companies, was a matter of consid-
Grafton. Randall Morgan represented the
United Gas Improvement Company, j. E..
Hulshizer the Jersey City interests, Uzal
H. McCarter the Fidelity Trust Company
and A. B. Carlton the Elizabeth concern.
Messrs. McCarter, Morgan, Hulshizer
and Stanley were present at the meet
ing this afternoon. The collateral bonds
are given on the stock in order that the
enterprise may not be blocked by any
refusal of the present stockholders to
part with their holdings.
The three incorporators of the United
Electric Company met in Jersey City
yesterday and elected themselves tempo
rary officers of the company, as follows:
William J. Davis, president; Frank M.
Stillman, vice president, and Thomas ].
George, treasurer.
The permanent organization of the COM
PAM will be effected as soon as the sub
scriptions of stock to the new company by
the stockholders of the three consolidating
companies have all been taken in. One of
those intimately interested in the big deal
said this afternoon that it was under
stood that A. B. Carlton of Elizabeth is
slated for the presidency.
Thousands of dollars worth of the stock
of the Peoples Light and Power Company
has been put upon the local market yes
terday and today. The stock has been Of
uSlGu III DUCKS Ol lTOm tell OF Twenty 10
400 or 500 shares each. Yesterday many
blocks of the securities changed hands at
1882 and s131 per 800.
According to the stories told by men
who are in a position to speak authorita-
lively. the dissatisfaction expressed by
shareholders has rather surprised the pro-
motors of the United Electric Company,
who apparently went ahead with their
nlao Nc q @ +bo,ob axrarxyfbirr mould ba rioin
sailing.
The prediction was made today that the
opposition to the transfer may assume
such proportions as to practically force
the United Electric Company people TO
modify their proposition and make addi-
tional concessions to the holders of Peo-
pies Light and Power Company stock.
Shares of Peoples Company stock are
said to represent a large portion of the
entire savings of numerous small holders.
and the prospects of being called upon 20
purchase ten per cent. additional stock
and then put up in cash twenty per cent.
of the entire par value has not pleased
some of the small holders, in spite of the
SITS in bonds on the 500 of stock offered
in exchange.
Seemingly, the most Objectionable fea-
ture of the new company's proposition is
the assessment of twenty per cent of the
par value of the stock held. The condition
will affect the smaller holders to a
greater degree than the more wealthy
owners, for the reason that the former
may have more difficulty in raising the
necessary money. No provision is made
for the sellers of stock taking from the
new company a smaller amount of bonds
in lien of tho rash qSSaSSmapf TT sepm99
to be a case of put up the money and
surrender stock: sell the stock outright
and lose future income, or hold on to the
securities.
1t is proposed to make the New Jersey
Title Guarantee and Trust Company of
Jersey City the trustee for the United
Electric Company, and the latter will ex-
ecute to the trustee a collateral trust
mortgage for $40, 600, 600 on the securities of
the companies absorbed. This collateral
trust mortgage will be given to secure the
new bonds of the United Electric Com
pany.
The difference between a collateral trust
mortgage an da general mortgage is that
the latter would be a lieu upon the real
estate, plants and other tangible assets of
all the companies comprising the new
COlQDlIldllOu, Wn4lC II It0SN
mortgage being based upon the secure
ties of the companies concerned, its value
as a security for the new bonds would de-
pend Upon the value of the original secu-
rites themselves. Collateral trust mort
cages are given in many fnanciering
schemes, a local broker said today. but
he added that they are never as popular
with investors as the first mortgages that
include real estate.
Mr.. Joseph E. Hulshizer, Jr., Of the
Title Guarantee and Trust Company, said
this morning, that there was nothing new
in the situation. He in speaking OF the
combine said
II am financing the affairs of the three
companies that are to be consolidated
into the United Electric Company. They
are the North Hudson Light and Powe
Company, with a capitalization Of ~
DOC. 600; the Consumers Light and Power
Company, of Elizabeth, with a capital
szation of $1,000, 600, and the Peoples
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