The sun., 1901-03-18
WILL FORM NEW
STEEL COMP ANY
Plan to Re-organize the Diamond
State Corporation.
TO SUBMIT TO STOCKHOLDERS
Capital Stock to be Over Five Mil
lions and Proposition to Purchase
Iron Company's Property
Outright.
TO SUBMIT TO STOCKHOLDERS

The following plans We're recently sub
mitted to the stockholders of the Da-
mond State Steel Co.. which is step
toward the formation of new conf
pany:
1t is proposed to form new company,
which shall issue $2,250, 900 of per cent.
preferred stock and $2,000,O00 Of common
stock, each having Il par value of $40 full
oaid; and $1,0O0,000 4 per cent. 100-year
irst mortgage bonds, redeemable at 102
1t any interest period. The bonds are to
20 to the Diamond State Iron Co., in re-
urn for which the plant, including the
,eal estate, is to become the property of
he new company. The present steel
ompany now operate the plant by
ease, the rental being $4,000, the same
: the interest of the new bonds.
or the $2250,OO0 new preferred stock,
$4,000 is to be sold at par for cash.
rhe remaining s1,S75,O00 preferred stock
ind $1,500.000 common stock are to be
Exchanged for the present Diamond
State Steel shares. The disposition Of
he 100000 common stock, the remain
Ter of the $2.000,000 issue, IS planned as
'ollows: sS75,0OO to be given, share for
hare. to the subscribers or the $375.000
referred stock. which Is to be sold for
ash and $125,000 to provide forexpenses,
including the organization of the new
ompany and the dissolution of the old
teel company and the iron company.
The plan provides that the S1.S75.O0O
,ew preferred and $1,000, 900 new common
took shall be exchanged for the s3.00O.-
90 ($6.25 paid steel company shares
low outstanding on the basis of 62Is
hares of the new full paid preferred and
| 0 shares of the new full paid common
hares for every 100 of the old shares,
| IN which $6.25 has been paid.
| The present steel company sharehold-
| rs may subscribe to the $375.000 pre-
erred stock to the extent of one share
| # the new for every eight of the old
| which is the ratio between the $1,000
lew shares to be sold and the outstand-
ng 300.0 900 shares) one share of new conf
non going with each share of new pre-
i erred. To take advantage of this privil-
| dissenting to the plan. April 10th. and
4 lnst also give notification of their de-
ire To subscribe before April 10, the sub
cription to be paid on or before April
9th.
As has been previously stated, the
l375.00O cash, which it is proposed to put
'nto the new company. will take the
place OF the funds which it was pro-
posed to raise by the s1.25 assessment
lue June /, and in the event of the
plan being agreed to- this assessment
will be cancelled.
Provision has been made for the sale
IF the S375.000 preferred stock. or of
;uch portion as the present shareholders
10 not subscribe for. Additional work
ng capital can be raised by the new
company through an increase in the bond
issue of s750,OO0. making the total ST.
10000, upon authorization by its share
holders. The Girard Trust Co. is
ramed as the depository of stock assent
'ng to the plan. E. b. Smith Il Co
ire managing the reorganization.
BY this plan the company will save q
um which it now has to pay annually t.
maintain the organization of the Dia
nond State Iron Go. If it continues (,
maintain dividends at the rate of PEI
cent on the amount paid in the dividend
disbursement on s2,250,000 of common
, took az paid inn would have beer
s1S0.000. The per cent dividend on tn,
s2.250.000 of preferred stock will amour
70 S157 800, a saving of $22.5O0 per annun,
r. One hundred shares of Diamond Stat,
Steel stock now represents an invest
mcnt of $685. on which dividends at
!. lier cent. would amount to just $50. Tn
I, I, Preferred stock accepted in exchange will
have Il par value of $625. on which divi
! dendS at per cent. will amount to s4S. Il
! 50 that by the change the stockhol,fc
accepts reduction of 1 per cent in in
come and as compensation for this h
will receive common stock which in tim
may become dividend payer. TIL
o common stock may. of course. be sol
i and the proceeds reinvested in II mannt
0 TO give an income.
s - ~