The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1902-07-21
TO HAVE CAPITAL
OF $3t0OO,0OO
Plan to Reorganize the Asphalt
Company Made Public
NOW IN RECEIVERS HANDS
Preferred stos * is to be Subject to
Redemption or Purchase After
Three Years from Issue
at Rate of 40.

Philadelphia, July 2O-The plan Of re-
organization of the Ashphalt Company Of
America and the National Ashphalt Com
pany. which companies are in the hands
of receivers. was made public Tonight by
two committees that have been examin-
ing the condition of the companies. The
plan provides that he property of the
two companies shall be acquired by a new
corporation which, to have capital
of ss1. 900.
The new company is to Ne organized
under the laws of the State of New Jer-
sey, or of such other state as may be
decided upon by counsel and may issue
capital stock as follows:
Five per cent preferred stock cumula-
tive after the expiration of two years
from the purchase of the property and
the commencement Of business by the
new company; entitled to no dividends in
excess of per cent, but to be preferred
in liquidation to the amount of its par
value. together with all accumulated anu
unpaid dividends; to an amount not ex-
ceeding $14.0OO,000 common stock not ex-
ceeding $1.,0O0,Us0.
100000 Common Stock.
Comon stock equal to one half the
preferred stock to be issued and not
exceeding $70000000 will be set aside in
the hands of a trustee or depository to
be used for the conversion of preferred
stock into common stock, and until its
exchange is to draw no dividends and
exercise no voting rights
Preferred stock is to be subject to re-
demption or purchase after three years
from fecua ar the raft of no DER ceQtum
of its par value.
The new company can acquire the
property and securities formerly belong
ing to the Asphalt Company Of America
and the National Asphalt Company but
in case the two companies SHAH be OF the
opinion that the acquisition of any such
property or securities would not be to
the interest of the new company such
property or securities may not be as
CURED
The right is to be secured to holders of
preferred stock to exchange their pre-
ferred stock for common stock at the
rate of $50 in common stock for each
500 of preferred stock surrendered.
Separate Reports.
Accompanying the Reorganization plan
were the separate reports of the two COM
mittees to their respective security hol-
ders. The national committee quote from
a letter of Receivers henry Iatnal ana
John M. Mack in whic-- they say the new
company should have an annual income
of approximately 100000 year.
The report of the American committees
/ goes into the history Of the organization
| of the American and national companies
! and referring to the over-capitalization
in the organization of the American COM
pany the committees says;
ut would appear as though In certain
cases purchases involving many millions
had been made at extravagnt prices with
| a most inadequate return. and in other
cases with no return, on the contrary a
loss. Apparently the name o. lie Ash
phalt Company of America aimed at re-
moving all competitors from the field al
most regardless Of the cost, and yet after
the expenditure of these enormous sums
they had failed to attain their Ject.