Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-03-09
STOCK TO BE INCREASED
MERCHANTS AND MINERS A
CENTER OF INTEREST.

BALTIMORE, Nd, March 9.-while none
Of these interested would discuss the price
and method of payment in the deal by
which the Merchants and Miners Trans
portation Company takes over the Boston
and Philadelphia Steamship Company, it
is admitted that the stock of the Mer-
chants and Miners Company Will be in
creased to meet the acquisition
The issue of this stock must be author
lied by the stockholders, who will meet
March 20 AS the majority of the stock
Is practically controlled by those directing
the management, it is not farfetched
assumption to say that whatever stock Is
needed will be issued.
The most frequent suggestions heard
were whether the stock would be offered
to the present holders or whether the au
thoriZed new issue would be exchanged
with the New York, New Haven and Hart
ford road for that of the Windsor line
which will be taken over.
The last additional issue Of Merchants
and Miners stock was given to the then
holders at $125 a share. The stock sold
in the open market yesterday at $500 a
share. From this it was reasoned that il
the present holders, any considerable
proportion of them, insist upon their right
to take the new stock it will be offered at
figure which will yield the company 100
per cent, or whereabouts, in profit.
For instance, suppose an issue of S.
100000 additional were authorized and
the present holders were given the right
to take it at $500 share, this would yield
the company 100000 in cash with only
one-half of this additional obligation
on which to pay dividends. 1t was init
mated that an underwriting syndicate
could be formed to take the stock at this
basis. This arrangement would amply pro-
tect the company in any such Offering
Those who discussed this matter thought
that in any event the best offering which
the stockholders might receive would be to
take the new issue al $50 share.
These matters would not be discussed
by those on the inside. They wanted to
let the deal get little further under way
before talking about future financing There
was no fear on their part, however but
that whatever settlement was needed to
take over the new steamship line would
be promptly met.
A New York idea.
In connection with the deal a New York
dispatch said
with reference to the purchase of the
Boston and Philadelphia Steamship Com
pany by the Merchants and Miners Trans
portation Company of Baltimore, it was
reported on what was apparently good au-
thority that the New York. New Haven
and Hartford railroad will purchase suffi-
Client of the stock and bonds of the Mer-
chants and Miners Company to enable 1t
to maintain the present rate schedule from
the south to New England ports. 1t is
said however, that the railroad will not
purchase control Of the steamship COM
pany."
Small Bonded Debt.
The discrepancy in this statement is ap-
parent in the fact that the Merchants and
Miners Company has comparatively
small bonded debt on it's own corporation.
1t has now only 100000 of bonds out
standing. It's power of increasing this is
perhaps only limited by the property 1t
has to mortgage That it's possessions and
it's profits warrant a larger bonded debt
many admit. But that any Of the existing
bonds will be used in the settlement Of
the purchase just made Is not credited.
These are closely held and rarely, if ever,
appear in the market.
That the New York, New Haven and
Hartford will be considered in future
transportation dealings by the Merchants
and Miners water lines is an accepted
fact. The community of interests estab-
lished by these companies in the existing
deal will naturally tend to favoring of
this rail line in the southern business 1t
originates, or which may develop in the
south and east for the New England
points it reaches.
These are more or less conjectures, how
ever, as those concerned in the combina-
ton are not free in discussing it.