The evening times. [volume] (Washington, D.C.) 1895-1902, 1901-04-11
RIVAL OF TEE STEEL TRUST
The Pennsylvania Company Ac-
cepts Reorganization Plans,

Capital to &C Increased to- 10000
OOO-DecTarntTon Made That the
Concern - 10 Have No Conrec-
ton With the Morgan Combine.
PHILADELPHIA. April 1.-THE plan
TOR the reorEa IMITATION OF the Pennsylva-
MA Steel Company by increasing the capt
tai to $5o.aa0ga1 has been unanimously
accepted by the stockholders out
OF the 5u.0Jd shares Of common stock
45.t5l were voted in favor Of the plan. as
were I2.9i9 ont of the loco shares Of pre-
.ferred stocN- There were no votes against
the proposition. and no opposition is an
tfcipated from the holders Of the shares
not voted
In fact. about s. per cent of the stock
had been deposited with the Girard Trust
Company with signed assent. hut the syn
dictate Of bankers who are to capitalize
the company under the reorganization
plans objected to any opposition which
might lead to litigation That no further
trouble is anticipated was stated after
the meeting by John Lowber Welsh. rep
reseIting the banking syndicate, and by
President Morris. Of the Girard Trust
Company. both IF whom stated that the
reorganization will begin at once
1t Is the intention TO extend the business
OF the company's two plants. including
the Maryland Steel COmpany's plant at
Sparrow Point. TO pay for the purchase
of the Spanish American COmpany's ore
plants at Daiqutrf- Cuba. 10 purchase 9TH
er ore mines. and TO establish coke plants.
so as to make the company independent
It MAS also positively stated that the re-
organization is net in the interest of the
Morgan syndicate nor any other comb
nation, but is simply to furnish enough
capital to run the plants o. the Pennsyl-
vania Company at their full or an in
creased capacity
The reorganization plan adopted yes
Jerday provides for new company with
the same title. to have an authorized cap
ital of Sz5.0l3.00V in per cent noncumula-
tive preferred stock and SO 090. 600 in COM
mon stock, all Of a par value of 500. al
the property Of the present company is to
be transferred to the new company. which
viii issue $165G0.d10 of the preferred shares
and $10,I50,e19 of the common stock, the
properties being SUBJECT TO the existing
bonded debt, Se,5O0,0O0. The remaining
shares. SS50J,000 preferred and S14.250.00
common stock VIII remain in the treasu-
~ Of the company
The stock issued will be distributed as
follows: The present preferred shares.
81 500. 600, viii receive new preferred shares
mon shares 90 per cent. $3.50 900, or one
preferred and one-haIf new common for
each share OLD preferred while the IS. 1903
present common stock VIII be replaced by
$5.UJ9,Ug9 new common stock, or dollar fOr
dollar. The plan further provides for the
sale of $4,000, go of preferred and lo,O19,-
900 Of common stock to the banking syn
dlcates, DreXel * Co, Dick Brothers q,
Co, and E. B. Smith & Co, for s., 10000
cash; =, GoJ, 00J Of which is TO be used TO
retire as much of the present bonded debt
Nc cal he hFr =
This viii leave 100000 for a working
cash capital with which TO make better
ments and expand the plan. The reor-
ganlZatlon Involves practically payment
to the underwriters OF commissions
amounting to $l000.GJ0 in cash and Sl,e0G,-
Cos IN common stock
At yesterdays meeting James F. Sulli-
van presided. Secretary Barker acting as
secretary Of the meeting The only oppO-
sition developed at any time was by H E
Kohn. representing BachTnan & Co, hold
eTS Of 300 shares common stock, and 3.
Eisenals, holding 100 shares: who at first
opposed the following resolution, winch
VAS a formal proposition to make the
transfer legal
Resolved. That the stockholders of tie
Pennsylvania Steel Company hereby ac-
cept the offer Of John Lower Welsh TO
pay S5.90e.o00 for all the property and as
sets OF tie company, he agreeing TO take
-such properly ana assets over, subject 10
the payment Of all debts and that the
board OF directors be instructed TO accept
such o1fer and 10 lake steps to carry the
zsale into feet
Mr. Kohn objected on the ground that
the amount offered did not represent the
fun equity of the stockholders in the
plant, which President FELTON,. in his cir
cular letter had valued at so. eco 600 In
reply President FELTON,, Mr.. Morris, Mr..
Welsh, and President Harrah, OF the Mid
vale Company urged the adoption Of the
resolution Mr. Morris related the his
tory OF the company since the receiver
ship in 1898, and urged that unless new
capital was injected the company would
be threatened with further eLabarrass-
ment- Sir Welsh stated that there was
nothing in the syndicate plans in which
the stockholders could not participate ez-
cept the underwriters commissions and
he stated that If the shares Mr.. KOFn rep
resented were voted for the plan ne would
agree 70 try to arrange that the owners
might have the alternative 10 take either
cash or stock for their holdings. the alter
native to be continued until the value in
the new securities be determined in the
market Mr. HarTah. who had examined
the plant. also urged the necessity for the
increased capitalization. without which
he argued. the plant viii greatly depreci-
ate II value. President FELTON, spoke in
similar vein and both Kohn and EiSeman
voted in favor Of the plan As most OF
the stock was voted on the assets by
Trustee bingham B. Morris. there was
comparatively small number Of the 3l9
owners OF common and rs owners Of pre-
ferTed stock present
GOOD FOR RHEUMATISM
st se+ FaT yras taken vrifh -erc Seyera A.