The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1901-05-19
IAN Industrial Of Un7oue vgIne

Ihe organization of the AIis-ChaInl-
efS COMPANY one of the latest indus
Irlal combinations, was attended with
CIcuIhSLanceS which make it in some
particulars unique in the business
WOriu, and has a local interest. because
the companies concerned are wen
known here. The company starts with
q cash capital of $4,000 600. OF which
sum - ,500.090 viii be expended in the
erection Of an additional plant to double
the present capacity of the Allfs works.
Inc of Che several plants in
Crude IN h consolidation. taking into
account the real estate, buildings, ma
inner tools, patterns, drawings n
patents, together with the cost Of or
ganlzlnE and getting into full operation.
IS placed by Julian Kennedy, an expert
enS1neer who examined the properties,
at $685., GEO. In this estimate no al
lOWance whatever is made for good wiz.
Inc total present value of tangible
property, therefore. is S19.9S5.000 70. while
JIe Total issue OF preferred stock
against this property is only $f6. $50. Goa.
All of this stock. it is stated. is issued
for cash at par, or in lieu of cash, for
the plants at less than their valuation.
as stated above. OF the total issue there
VIII be more than Oh per cent in cash,
and the balanee VIII be in property that
produces much more than the cumU-
Iatiye dividend to which the preferred
stock is entitled.
The companies taken over by the Al
disclaimers company include the fOl-
lowing builders of heavy engines. min
ing and other machinery: The Edward
p. Allis company of Milwaukee. Wis,
Fraser & Chalmers, Incorporated, Of
Chicago, HIS the Gates Iron Works OF
chicago, Ills. and the Dickson Manu-
teXciuSIVe OF locomotive works.. The
( plants are all running at their fullest
capacity. The examining engineer
Lound bhat the great bulk Of the tools
in allrOf them were comparatively new,
{ having been put in within the last seven
Allis. Fraser & Chalmers and Gates
Iron Works plants have been operated
night and day during the past two
years and have from lack Of capacity,
declined in that period as much bust
ness as they have been able to accept.
The cOmUany's net profits for the fiscal
I year to n Ma I. 1902. are estimated
as sufficient to pay dividends at the
rate of z per cent on the authorized
preferred stock. and about 4 per cent
on the common stock
If allowance is made for the cOnO-
mics expected from consolidation. it is
estimated that the company in this
period should earn Z per cent on both
ness expected to follow the completion
Of che ADDITIONAL AIis works. now in
course Of CONSTRUCTION. WIZ, it is esti-
mated, bring the profits up equivalent
] W. % hEA LEAt OAA tAHEa D4 [Ltttt 4- NAN-h
and 10 per cent on the common stock.
n also make d material addition ia
z the surplus ccount. The authorized
preferred stock is S16s250,e00. bearing
per cent cumulative dividends. and it
is convertible into common stOck. share
( for share, at the option Of the holder,
upon any first day Of May until and in
Guiding May /. 1921. 1t saIsO mas a fur
4 ther preference Of ger cent, nOn-cUmu-
/ latiVe, after the payment of g per cent
! Upon p common stock. The author
lied amount of common stock is }$20,-
600. LOCO.
The board Of directors is cOmUosed
{ as follows. Edward T.. Adams. Elberi
H. Gary. William AsRead James still
man and Cornelius Vanderbilt Of New
York: William L. EIkins. jr- Of Pnila-
delphia. Henry W. HOyt, w. j. CHAIN
ers. James H. EckleS and Max Pam OF
Chicago. and Charles Allis. William "
AUis=uFrank g. BigeIOw and Edwir
/ Reynolds Of Milwaukee. This preferred
i stock is recommended by Vermilye &
Z Co. Of New York and Boston as a man
uGactUrfng investment. in the security
earnings and management of whicF
I they eXnresS entire confidence. sup.
4 scriUti8ns Veill be received by this frn
for s.. 100000 preferred stock at los. un-
! til the close of business on May 2l
Right is reserved 60 reject any or al
subscriptions. and to close the subscrlp
! non at any time without notice.