The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-10-13
GUTEBlL ELECTMC'S MOVE.
.,poBT THAT IT WELL INVADE
LOCAL LIGHTING FIELD

LOCAL LIGHTING FIELD
-....h the Control Of the Manhattan
Tr,nslt Company n the Ions Acre
IIrht and Power Company Plans %
increase It's Capital BY el1s000y0OO.
rAose who make the financial rumor
ks, we're worked overtime yesterday.
1-aounoement was made early in the day
49, ,be General Electric Company directors
ii Issued a call for a special meeting Of
.ooLbolders on November 70 to act upon the
s,sstion Of increasing the authorized capt.
vi from soO, 900. 900 TO $50 900 900.
7, vas announced that the new stock will
--hsbly be offered 10 stockholders In q
.r.ao Of one new share for every five shares
"a which would call for a little under
srmnN0 This would make the rights
:, ire present market value Of General
Thctric worth approximately SO a share.
Although the present authorized capital
.,tiou Of the company is 500, 900 900, only
NJ 400. 800 is outstanding. In December,
,oO5 the authorized stock was increased
,om So. S25,JO to $50, 600 600. and share
hohers had the privilege of subscribing
"a sos4OO Of the new stock at par, or TO
,hs extent Of i2is per cen OF their holdings.
\, IeOI sha 70 holders were permitted to SUBJ
.-,be a. PAR for new stock to the extent OF
N per cent. Of their holdings, so that, in
cuding the present year and for two years
hack. the return of General Electric share
holders on their stock has been largely
augmented by valuable rights In addition
20 the regular dividend.
The ISSUANCE of about 81 900, 900 ad-
d%itonal stock. comforting rights upon stock
holders estimated AZ sl3 so, makes a total
NJ ss in rights which shareholders have
received during the past three years, equal
10 % per share yearly, and making the
total return per share. including dividends,
over sl7yearly for the last three years.
The Street had had just about time to
absorb the foregoing information when
Inc announcement was made that Edgar
Van Etten. vice-president Of the New York
Central, had been elected president Of the
Long Acre Light and Power Company. the
control Of which. along with the Manhattan
Transit Company, was recently acquired
by John c. Sheehan and associates.
Il also became known, although not
IWuniI 1HAA'NaAANNog ttAAt " NAANAs
general auditor Of the General Electric
Company, was associated with Mr.. Van
Eten in the Long Acre company.
These facts started many rumors in the
financial district, One story, which was
vOuched for by men known to be close to
the Affairs Of the General Electric Company
and which was generally accepted as having |
a substantial basis, was to the effect that. |
through a deal made with John G, Sheehan
and others the General Electric Company
had absorbed the Manhattan Transit Com
psny, which owns the Long Acre Light and
Power Company, or with its 81 ,OOO, 600 Of
new capital would o acquire control.
No confirmation Of this story could be
had, but i was said by a man close to Mr..
Sheehan that within a day or two a detailed
phnof operations Of the Manhattan Transit
Company would be announced and that
tEould cause a surprise in financial circles.
That the Manhattan Transit Companv
ITO be IN Independent competing lighting
COMPANY has already been Acknowledged,
but the Wal Street wiseacres said yester-
day that the new corporations plans were
ola larger calibre than that. and that with
the practical backing of the General Elec-
inc Company and its the Man
haitian Transit Company would be a rival
ofthe Consolidated Gas Company and other
public utility companies in the light and
power feht in this city and also in BOSTON.
Inc Long Acre IdRnC n POWER Com
pany was organized about q year ago by
a number ~ theatrical men for the purpose
81 furnishing themselves with electric light
and vas eventually bought by Mr.. Sheehan.
The long Acre company claims a fran
permitting it to distribute electricity
lighting purposes. Az an initial step
representing Mr.. Sheehan ap-
Feared before Justice Bowling and pro-
sired a peremptory writ OF mandamus
the Electrical Subway Company
% permit the Sheehan company to place it's
wires in the Suhways.
Mr.. Sheehan has declined to say who Ia
associated with him in his new enterprises.
declares that he is not connected with
my existing large public utility corpora
He is organizing, he said, an indie
pendent company and intends to exercise
the rights under the various franchises
o. both the Manhattan Transit Company
and the Long Acre Light and Power Com
nny
10 other words. If MIR. Sheehan Is to Re
literally, he and kiS associates will
,Srier the traction field as competitors Of
ne local traction ard Fast River tunnel
will operate automobiles over
he streets and will compete Nth the Con-
Olaated Gas Company in the electric light