Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1901-03-21
DIAMOND STATE STEEL co.


Provisions Of New Plan That is ia he SUBJ
0@ h mitted to Stockholders.
The plan submitted to the stock
holders of the Diamond State Steel Co.
Is substantially as follows;
IL is proposed 10 form q new COM
pHny, which shall issue 81, $50. coo of Z
per cent preferred stock and 81, 600, 900
OF common stock, each having par
value OF $40, full paid; and 81, 600, 600
4 per cent 100-year fret mortgage bonds,
redeemable at 102 at any interest
period. The bonds are to go to the
Diamond State Iron Co., in return for
which the plant, including the real
estate, is to become the property of
the new company. The present steel
company nov operates the plant by a
lease, the rental being $40, 900, the
same as the interest of the new bonds.
Z Of the 50, $50, GOO new preferred stock,
$50, 600 ia to be Sold at par for cash.
The remaining S1,S75, 600 preferred
stock and 81, 100000 common stock are
to be exchanged for the present Dia-
mond State Stse shares. The dis
position of tho $500. 600 common stock,
the remainder of the 50, 600, 900 issue,
is planned az follows: 1915. 600 to be
given, share for share, to the subscribe
ers for the 1916, 600 preferred stock
which is to be sold for cash, and
Sl25, 600 to provide for expenses, includ-
ing the organization Of the new COM
pany and the dissolution OF the old
steel cunipany aud the irop company.
The plan provides that the 81, 875, 900
new preferred and 81, 800, 600 new COM
mon stock shall be exchanged for the
81, GOO, 600 ts6. 25 paid) steel company
shares now outstanding on the basis of
621e shares Of the new full paid pre-
ferred and so shares of the new full
raid common shares for every 100 of the
old sharos, on which S6. 20 has been
paId. ~
The present steel company sharahold
ers may subscribe to the 1916, 600 Ere.
fefred stock to the extent Of one share
d the new for every eight of the old
(which is the ratio between the
$1,000 new shares to be sold and the
outstanding 300,000 shares, Que share
OF new common going with each share
OF new preferred. To take advantage
OF this privilege present shareholders
must deposit their holdings before the
time limit for dissenting to the plan,
April l0th, and must also give notifica.
tion OF their desire to subscribe before
April 10th, the subscription to be paid
on or before April Goth.
As has heen previously sta led, the
S315, 600 cash, which 1t is proposed to
put into the new company, will take
the place of the funds which 1t was
PROPOSED to raise by the 81. 25 assess
ment due June LIST, and in the event Of
the plan being agreed to, this assess.
rnent will be Cancelled.
Provision has been made for the sale
OF the 1876, 900 preferred stock, or OF
such portion as the present sharehold
ers do not subscribe for. Additional
working capital can be raised ty the
new company through an increase in
the bond issue of $3.50, 000, making the
total 81, $50, 900, upon authorization by
its shareholders. 4 The Girard Trust
%. is named as the depository or stock
asserting to the plan. Il. B. Smith &
90. are managing the reorgani cation.
| BY this plan the company will save
n sum which 1t now has to pay annu-
ally to maintain the organization of the
Diamond State Iron Co. II 1t con-
tinued to maintain dividends at the
rate OF 8 per cent on the amount paid
in the dividend disbursement on
81, $50, 900 Of uommbn stock(716 paid in)
would have bsen SlS0,000. The pei
cent dividend on the 50, $50. 600 of pre-.
ferred stock will amount to Sl57, 500, a
saving OF 1922, 500 per annum. One
hundred shares of Diamond State Steel
stock now represents an investment oil
1925, on which dividends at s per cent
would amount to Just $780, The, pre-.
ferred stock accepted in exchange will
have a mar value of S625 nm which
dividends at 7 Fer cent will amount ID
e43 70. 50 that by the change the stock
holder accepts reduction Of per cent
In income and as compensation for
this he will receive common sotok
which in time may become dividend
payer. The common stock NAV, 81
course, be sold and the proceeds re.
invested In a manner to give an income.