The age-herald. [volume] (Birmingham, Ala.) 1897-1902, 1899-06-03
PLAN OF ELYTON co.
REORGANIZATION
VIII be Able to Liquidate Taxes
and Floating Debt,
PRIOR LEAN INDEBTEDNESS
Will be Retired and Adequate Provis-
ions Made for Working Capital
Holders of First Mortgage
Bonds Will Control

The plan for reorganzing the Elyton
company, of Birmingham, formerly the
famous old Elyton Land company, and
which in boom days was the synonym of
wealth and prosperity. has just been pub
lished in pamphlet form, and was made
public yesterday. This reorganization was
agreed to by the stockholders and bond
holders on October 4, 1888.
The committee appointed for the purpose
of outlining this plan consisted of William
Halls, Jr., chairman; Augustus w. Kelley,
Alexander d. Seymour, Thomas G. Jones
and William T. Hardie. Wheeler H. Peck
ham was the counsel for the committee,
and c. C. Rawlins was the secretary.
The fundamental features of the plan in
volye the Organization of new company,
and contemplate the retirement of the $12S,-
900 Elyton Land company per cent. divi-
dend trust bonds and the reduction in
amount of the Elyton company first mort
gage per cent. bonds from si,641,O0 to
$3.50 900, and the reduction in amount of the
capital stock from 100000 to 81, 300, 600
the raising of 100000 cash by an assess
ment of per cent. on the capital stock of
the Elyton company. $4,000, and by tho
pany to be organized, 100000; the creation
of S550,000 per cent. prior lien bonds UNI
der a suitable sinking fund provision. and
the creation of $7OO,O0O preferred stock,
Debts and Per Cent. Bonds to be Raid
All of the old dividend trust bonds,
amounting to Sl2S 600, will be paid in cash
at par and all of the existing debts of the
company will be paid off.
A new company is to be organized with
81, sos, 900 of common stock, 100000 of per
cent. non-cumulative preferred stock, $780,
900 of first mortgage per cent thirty-one
year gold bonds.
The stockholders of the Elytoh company
will be assessed 5 per cent. on the par
value of outstanding stock, amounting to
81, 900 900. This per cent. assessment, to-
gether with funds raised in other ways,
will leave the company working capital
of $2i1, 900 in cash.
The dividend trust bonds will be paid i'll
cash, the face of their bonds. and prefer
red stock for their accrued interest
Stockholders who come into the reorgani
cation will receive on each share of 500
and So assessment paid thereon $50 in COM
mon stock, and So in preferred stock in the
| new company.
The holders of the per cent Elyton
bonds will receive 30 per cent in new first
mortgage per cent. bonds, 80 per cent.
in preferred stock and 40 per cent. in COM
mon stock.
For past due coupons on the Elyton 5
per cent. bonds the holders will receive 30
per cent. in new first mortgage bonds, 80
per cent in preferred stock, 50 per cent in
: IL, azI
Provision is made in the reorganization
plan for underwriting the new first mort
gage bonds and assessment ON the stock of
non-assenting or defaulting stockholders.
The syndicate to be organized for this pur-
pose shall also have the power to furnish
such money by underwriting bonds or
otherwise as may be necessary to carry
out the PLAN
The new company may develop its prop
erty by erecting buildings and selling the
same on the installment plan.
May Improve Its Property
The new mortgage shall contain sink
ing fund provision to the effect that there
shall be applied out of the proceeds Of all
land or property sold 80 per cent. for the re-
tirement of prior lien bonds, and 20 per
cent. for the retirement of the new first
mortgage bonds. The sinking fund clause
shall also provide that after the prior lien
is extinguished, then the first mortgage
bonds shall have the benefit in the sink
ing fund under the same provisions to the
extent of So per cent, and the preferred
stock to the extent of 25 per cent. of the
proceeds of land and property sales.
Stockholders will have until June 20
eli ,,1a
Advantage Of Plan
Under the plan the new company will be
able to liquidate the taxes and floating
debt, and to retire the present prior lien in
debtedness; to reduce the fixed charges to
a safe limit and also to save a large an
nual expense; to make adequate provisions
for future working capital requirements
and to reinstate existing securities upon
equitable terms in the order of their prior
ity
While it is recognized that the land COM
pany VIII be a liquidating concern, it is,
nevertheless, the opinion of the committee
which got up the plan that in working out
the liquidation it will be impossible to
take advantage of the improved condition
of affairs in Birmingham, and Of the IA
clities it will posses as new and solvent
company to accomplish much in the direc-
ton of constructing houses and selling
them, with the lots at a profit, as a part
of the future operations of the companys
business.
1t will be seen that the holders of the
Elyton company first mortgage per cent.
bonds will control the new company be-
cause their preferred and common stock
will greatly AVOID voting power, all the
stock acquired by the old stockholders.
OEDonMhI