New-York tribune., 1909-09-25
LEATHER MERGER WINS
BIG COMPANIES UNITE.
United States Concern Finally Yields
Offer of the Central.

T. The long drawn out fight against the merger of
she Central Leather Company with the United
states Leather Company came TO end yesterday
,llen the stockholders OF the companies met in
Yo-sey City and voted almost unanimously in favor
- the consolidation. only three hundred. out OF n
.o,al of nearly 1900 600 shares both companies
resented at the meeting, being recorded against IT,.
This action was made possible through the ac-
D,anee by the minority stockholders OF the United
ctates Leather Company. headed by James B. Col
-s,e & Co who had been fighting the consolidation
since il was proposed in 1905 Of the terms OF
settlement offered them by the Central Leather
~ounanv and their consent 10 the withdrawal OF
she ,enporary Injunction restraining the stockhod-
80 fron, voting on the merger resolution at yester-
dsv's meeting
chancellor Pitney vacated the temporary injunc-
.,on Thursday night after having been informed by
.he Colgate interests that they had consented 10
withdraw their application for permanent injune-
40, which was have come up for a hearing on
octcbe- T. Following the action of the stocixhod-
s-s in ratifying the merger of the two companies
rsners were filed at Trenton for the organization
80 the new concern which will be called the Cen
tral Leather Company
lanes b. Colgate & Co declined yesterday 20
ate r,lblic the terms OF settlement with the Cen
oI Leather Company, but II is understood that the
,,iroritv interests in the United states Lealhes
Germany parted with their holdings at a consid-
-.bi, better figure than was originally offered TO
,ben, The last ofer they received was. IN erect
.L,+ each hundred shares OF United States Leather
,,,a Get 5000 in bonds, 80 shares in preferred
.oc,, and SO a share in cash. which was virtually
,v,,,.lent 10 SIS share for their holdings This
80 sns the preceding offer, which was the same
- ,te exception OF the SO a share I'm cash, were
,,5 down by the minority stockholders.
:, -,s said Yesterday that the offer they finally
..oo,,o5 vas entirely Of bonds and cash. hut the
o-,o,nt of each could not be learned The principal
bs...ion 10 the merger Of the two companies oy
,ors+, United States Leather stockholders
20 Zen thar they we're not being offered enough
s-.Lsi- boldinEs to reconpense them for the loss
= - accumulated back dividends. amounting 20
"a ner cent on their stock
~ yrinority stockholders OF the United States
r.,h.r Company. who represented about thirty
,oss1s shares Of the preferred stock. began their
go orainst the merger with the Central Leather
--,snv IN 1905 Chancellor Emory. OF New Jer-
sev before whom the suit brought rendered
q decision early this year dsapproying OF the mer-
ger but made a decree permitting the proposed
Agreement 10 be submitted to the stockholders OF
hoth companies. The New Jersey Court Of Errors
and Appeals later reversed this decision, holding
that the charters Of the two companies were 100
dissimilar TO permit Of their consolidation.
The Central Leather Company subsequently,
changed its charter TO conform TO that Of the
United States Leather Company. Steps were again
taken by the majority stockholders Of both COM
panies 10 carry out the merger, and a meeting was
called for September "a 10 vote upon the PROPOSE
ton Al the time a better offer for their
holdings WAS made the minority stockholders
OF the United States Company. AS already stated,
a temporary injunction restraining the stockhold-
Of the two companies from voting on the meT-
ger resolution and. until their action on Thurs
day in consensing the withdrawal OF this in
junction and their acceptance OF the offer, not yet
made public. Of the Central Leather Company, IL
looked as though there would be more long drawn
out litigation before the matter was definitely set
ted