New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-05-29
THE LEATHER PLAN.
Part of s29, 100000 Accrued Diu-
bends on Preferred To BE Paid.
A SURPLUS OF $4,000, 900.

Following protracted session yesterday az
ternoon Of the board of directors of the United
States Leather Company, there was sent to the
stockholders last night circular letter ernoouS-
ing the long expected plan for division OF the
surplus and reduction of the accumulated olVi-
dends due the preferred stock. The CIRCULAR
which is addressed 10 the preferred stockholders
is issued by the committee of preferred STOCK
holders, consisting Of George Foster Peabody.
chairman; S. P. Davidge. Eugene horton
George a. Vail. Theodore r. Hoyt. Nathan Allen
and Frank Healy. with George L. Nichols. coun-
sell and L. G. Myers secretary. The company
has outstanding So 2S2 800 S per cent cumula-
tive preferred stock and S62.sS2.3oo common
stock The accrued dividends on the preferred
stock the plan saws, amounted on January l.
1903, to 81 per cent of par, or about S23,Voooo;
and il is felt that part at least OF the large
surplus of the company-estimated at about
IaOe0Oa0-ought now to be made available in
some form for payment on these accumulated
dividends the remaining part to be made more
readily available for capital purposes Of the
company. An obstacle, however. is found in the
unusual provision of the company's charter that
written assent must be given by so per cent
of the preferred stock TO any bond or debenture
issue either by the Leather Company itself or
by any of the companies in which it holds a
majority interest. The circular continues:
TO the stockholders by the board of directors for
January last showed a surplus Of S. $50 80 81;
stock The report of the executive committee his
day made TO the board Of directors "a copy OF wGn
each stockhoder. preferred or common shows
active working Of the timber lands owned by the
tanning compaHeS IN PennssHaila the e r Ihn%S
with the result of disclosing a large INCREASE IN
subject to strict reservation of al bark and bark
F have Lumber Sssp Sa the Which, has paid
for them in its securities. INCLUDING Sioc s;t
ing ~ fund god purchase money bonds,
cured by first mortgage to the 3rtSn ION , aTGst
Such 100000 bonds. together with stock of the
through the payment of debts owing by the tan
ming companies TO the Leather -, So mn t, UT
companies come into the treasury of the Leather
Company which now holds the After MAX
Of the Leather Company may be conseFEetlVedy
Of the outstanding preferred stock. But this sur
Plus is In large paT1 [ne Com
pany. 1t is not believed that the requirernent OF
holders Of the Leather Company is legally applica-
bic to the mortgage thus made by the Jumper
Company's treasury
Accordingly the preferred stockholders are
asked to act together for several purposes,
among them:
F4rst-To rahfy the issue OF the bonds Of the the
mortgage Of that company which secures them.
seeond-Io make 6raf6Jaoe by sH fb ea f6n
company distribution them OF a considerable
portion of the surplus dnCluding bonds OF the
lumber company 10 the extent TO which the board
of directors shall deem II proper to distribute
curities in lieu of cash on account Of the accrued
ThrdNTo assure the requisite SO per cent con-
after. where the leather company shall deem II
sound Judgment, whether for acquisition OF prop
@ or for otner ea4t b POI se to % b n or
company OF which 1t shares Of stock.
For these and other proper purposes, the
circular continues, a plan has been embodied in
an agreement dated May %, between asserting
preferred stock holders of the leather Company,
the Morton Trust Company and the preferred
stock holders committee. The agreement pro
yides in the first place that asserting holders Of
preferred stock shall deposit their shares. with
proper form of assignment and sale, with the
trust company, which will issue against them
negotiable beneficial certificates, which ii is pro-
posed to have listed on the Stock Exchange.
The plan continues:
The trust company from time time. may
be thought advantageous is to distribute among
income ard profit which it shall receive upon such
shares over and above dividends at the annual
10 be paid Immediately upon their receipt and
without any deduction for chargsss or expense to
income above 6 per cent per annuTn TO be subject
also to be bound upon the written request OF the
owners Of majority IN par value Of the beneficial
certificates resell and reassgn to them the pre-
ferred stock against which the certificates were
The agreement is to terminate on May &c. 1913
unless in the time the preferred shares shall
the holders OF beneficial certificates shall elect
10 extend il; and il is TO become operative upon
cent par value of the preferred stock, If the
committee shall so order. ulsn the assent and as,
given on or before October 1903, unless the time
be extended as provided in the agreement.