The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1904-04-14
new ISSUE
OF STOCK.
Virginia Carolina Chemical Co.
Will Retire Immense Float II
Ing Debt.
STOCKHOLDERS E.7 TO MEET lE:'
They Have Been Called for May
1Sth-Busi1less Re-
vival.

A letter has been sent out to stock.
holders Of tho Virginia Carolina Chemical
Company, calling n general meeting Of
Stockholders in this city on May 18th TO
consider and act upon proposition by
the board Of directors to Issue six mil
company. with which TO retire the float
Ing debt of the company, incurred last
summer. sf ~
The board after mature consideration
and justified by the gratifying growth
and condition of the companys business,
will recommend to the stockholders the
Increase Of the company's preferred stock
from twelve to eighteen million dollars,
the ncxt issue Of six millions to be on
precisely the same basis. and paying
eight per cent. Just as tho outstanding
preferred stock.
a The entire stock Of the Vlrginla-C Caro-
lima Chemical Company now consists o. (
twelve millions preferred and twenty
eight million dollars Of common stock,
total OF forty millions. The proposeal
issues OF preferred will lncreaae the total
capita liza ton to forty-Six millions.
ENHANCE COMMON VALUES.
"l'hc company borrowed six million dol-
la last summer" said IN officer Of tho
company yesterday. "Of tina t sum 2it has
been found necessary to use only four
and a half millions. The proposed issue
of six millions of preferred VIII enhance
rather than depress the value OF the
common stock. Certainly that Is the
opinion OF the directors and It can be
demonstrated to any business man. 1t is
more desirabl to retire floating debt
and have In Its stead an Issue OF stock.
the dividends on which are dependent
on the business OF the corporation. The
floating debt must be paid at a stated
time, and the interest likewise. Ny be-
| lief is that wlping out the floating debt
and issuing preferred stock Instead, Will
| have the effect of enhancing the value
| OF the common stock, and believe any
financier will agree with me. The pre-
! ferred stock will pay eight per cent.
THE business of the company Is stead
lily Increasing. II increased twenty per
cent. last year, and has already Increased
more than eight per cent. this year; and
| is in healthy condition.
| STOCKHOLDERS SANCTION.
The board could not take this action
| without the sanction OF the stockholders.
| and 1t Is for5ths reasun that letter
has been sent out calling a general meet
| ing of the stockholders a ti3sthe general
offices in this city on May 18th. The
| purposes Of the meeting are clearly
stated In that letter.
II will be remembered that,the neces-
| sity for the loan which 1t Is now pro-
| posed to retire by the Issue OF preferred
stock arose from conditions in the money
market as a result OF which the banks
/ refused to discount the notes OF mer-
| chants given to the company Tor fertll-
izcrs purchased BY them. Since then con-
ditons have improved, but the COM,
pany has sought TO realize on this paper.
THE loan secured at that time has been
moro than sufficient to meet the COM
pany's needs. and million and half
1 Of the sun, borrowed remains uncN-
! pended.
| There seems to be no doubt that the
stockholders will ratify the proposition
| of the board, and it is confidently eN-
pected that the effect of the proposed re-
tirement Of the floating debt will be to
Immediately and permanently enhance
the value Of the stock.