The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1903-04-15
STILL TALKING
MERCER
Big Trolley Deal Engrcsses
the Attention of City
Capitalists.
FIDELITYS PLAN UNIQUE
General Opinion That It's
Provisions Ensure Bene-
.ht to All Concerned.
FIDELITY'S PLAN UNIQUE

The trolley merger was still being dis
cussed by financial men in this city to-
day. The notice which was published in
the local and metropolitan newspapers
yesterday, copy of which was sent TO
each stockholder of the companies in the
combine, was read with. interest. This
notice as published in .'The News of
yesterday calls upon ali stockholders ac-
cepting the proposition to deposit their
stock on or before Monday, April 27,
1908, with the Fidelity Trust Company,
of Newark, or its authorized agents, the
New Jersey Title Guarantee and Trust
Company, of this city: the Manhattan
Trust Company, of New York, or the
Commercial Trust Company, of Philadel-
phia, unless the time limit for such de-
posits shall be extended. Certificates of
stock must be Endorsed in blank at the
time of deposit.
The Fidelity Trust Company will issue
its negotiable receipts for stock deposit
ed, to be exchanged for the perpetual in
terest- bearing certificates of the new COM
pany as soon as the plan shall become
operative and the certificates are ready
for delivery.
The opinions, so far as they have been
expressed, are generally to the effect that
the proposition seems to have a sound
and Substantial basis, and that if the
purposes for which the proposed new
company is to be formed are carried out,
the public and the people whose money
is invested in these securities will be ma
zerially benefited.
The plan upon which the Fidelity's Of
fer was established is considered by
financial men to be somewhat unique in
character. The proposition does not con-
template the use of the cash that will be
of the new company for the purchase of
the stock of the underlying companies.
The $10000.0 600 of stock to be sold inn
mediately at par for cash is to constitute
what may be termed a very substantial
working capital. The remaining $15,-
100000 of stock will not be issued until
future exigenaies may call for the in
creasing of this working capital, but the
scheme is SO constructed that with each
outlay Of cash from the treasury for the
purpose Of cancelling the present out
standing non-bonded Indebtedness of the
underlying companies an equivalent
amount viii be received back into the
treasury in the shape of bonds of the
several companies benefited.
To analyze the proposition concerning
the method to be pursued in taking up
the stock of the various merging COM
sanies, now in the hands of the stock
holders, is a simple process, financial
men say. The proposition is to issue in
exchange for the stock acquired certif-
Gates Of indebtedness of the new COM
pany, which will be issued at par and
which will be distributed proportionately
to the accepting values placed on the
various classes of stock to be surren-
dered- This stock is to constitute the se-
curity for the certificates Of Indebtedness
so that the latter will not be burden
upon the new company any more than
the extent Of interest payments guar
anteed upon them perpetually. These
certificates, will, therefore, not b bond
ed Indebtedness Of the new corporation.
ths1gh they may be classified with deb
cpture bonds. The company win simply
take the stock, give certificates in their
stead and secure the certificates it will
give by the stock it takes.
nj this regard the difference to the
stockholders Of the underlying companies
Nil! be that they will yield up stock that
has nsscr been a source Of profit so far
81 ;As capacity to earn dividends is con-
csrssc, together with their rights as
stockholders, for interest bearing certif-
Gates that viii carry with them no rights
q ssoeEhc'1srs. An important factor in
the proposed surrender Of stock 10 ex-
change FOR certificates is the augmented
Mrs. Marsh's Very Words,
Afser ealing she tells us, I had an
awful pais at the chest and my stomach