The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1909-02-02
BONDHOLDERS GIVE
CONSENT TO SALE
of Owners of Securi-
ties Favor Selling StanisIans
Electric Power Company
E. II. Rollins 6 Sons Offer to
Head Movement in 0ppO-
siti0n to Deal

Adviees were. received from Boston
yesterday that enough bond holders
OF the Stanislaus electpic power COM
pany had given their consent to the
plan Of sale to assure its absorption
by the United Railways Investment
company. The time for the ratification
of the. agreement expired Saturday
night, and it was only yesterday that
the result was positively known The
dissenters will continue their opposi-
ton, but with what effect can not be
predicted
The banking firm of z. II. Rollins &
Sons has suggested & meeting of the
bond holders and has offered to head
such a movement in orders to prevent
the sale IL possible In the circular
opposing the sale on the terms pro-
posed, Rollins & Sons say:
In our Judgment the treatment OF
the existing first mortgage bonds is
unnecessarily drastic and the subOrdi-
nation to the. extent proposed Of the
interests of the first mortgage bonds IS
not necessary. We feel that the con-
tract. with the United Railroads Of san
Francisco will be burdensOme TO the
new company and we are convinced
that this proposed contract will not
yield for. the cOmpany's product OF
power the returns it should receive.
INDEBTEDNESS UNNECESSARY
1--WE do not think it is necessary to
place such a heavy Indebtedness ahead
of the present bonds. We think that
the bond holders should receive a
greater proportion of the equity before
giving considerable Values to the stock.
We feel that the company can be re-
established or reorganized on an indie
pendent basis or otherwise on terms
more favorable.
we shall Immediately advise any of
our customers holding these bonds of
our opinion as above expressed and
SIC they and other bond holders feel
that the situation should be further
examined. we would suggest that u
meeting OF bond holders be called and
that an advisory committee be ap-
pointed BY them for the purpose OF
studying the entire situation with the
aid of experts.
The men composing the protective
committee" who have arranged the
sale. have issued a reply to Rollins
circular in which they state that Ro.-
Inns * Sons endeavOred to purchase the
Stanislaus company for another power
organization. While the name of this
corporation is not specifically men
tined. IL Is known that the reference is
to the Great Western power company.
In this connection the protective COM
mittee authorized the following state
ment:
INSIST ON COMBINA ALTON
"E. III. Rollins & Sons have been IN
touch with the negotiations for a long
time. They have insisted either on a
combination with another company. in
which they have very large interest.
or that the securities represented by
them should be purchased for cash by
the committee. Neither of their sug-
gestio9s is in the interests of the Sc
IT..
final offer from the representatives OF
this other company. In which they are
so largely Interested. was in writing
and copies can be seen on applica-
ton to any member of the committee.
In the opinion of the protective COM
mittee it is very much less favorable to
the security holders than the plan now
proposed"
At the Office of Rollins & Sons il was
stated yesterday that the firm desired
merely to protect the bond holders
whom it represented. and for that rea-
son had protested against what they
believed to be an unfavorable propo-
sition.