The Newark star and Newark advertiser. [volume] (Newark, N.J.) 1909-1909, 1909-09-15
PUBLIC SERVICE TO
RAISE s50,O0O,O00
BY BOND ISSUE
Merger of Gas Companies Part Of
Plan Yielding 5 Per Cent.
Increased Dividend.
PROCEEDS WILL BE
SPENT FOR IMPROVEMENTS
Shares Are Offered at Par-Sale
Will Be Restricted to Pres
ent Stockholders.

As a first step toward the realization
of benefits to accrue under the re-
Gently authorization of an
issue of bonds to be underwritten by
j. p. Morgan & Co, directors of the
Public Service Corporation met yester-
day afternoon and made Important in
dustrial history.
A summary of the results of the
directors meeting yesterday include
the placing of the stock on a 5 per cent.
dividend basis. the authorization of the
transfer of gas leases and property of
the company to Public Service Gas
Company. the execution of new general
mortgage of the company securing an
issue of $50, 900, 900 of bonds, n the
authorization of an allotment to stock
holders of record of 25 per cent. of their
respective holdings of stock at par.
A 8 per cent. dividend paying basis
was reached by declaring a dividend of
IN per cent. for the current quarter
rather h the normal / per cent. This
Increased dividend is payable Septem-
Der 80.
1t means that stockholders of the
Public Service Corporation will be paid
S225,000 in dividends for the current
quarter, rather than the $3.50, 900 they
would have received on the 4 per cent.
basis.
A record of the acts of the directors
of the Public Service Corporation at
their noteworthy meeting yesterday,
xrrif1 2lA 49, - - - i
contained in the official statement of
President Thomas N. McCarter, of the
corporation. 1t is as follows:
1.-THE board of directors of Public
Service, at a meeting held his after
noon. placed the stock of the company
on a 5 per g dividend paying basis
by declaring a dividend of IA per cent.
for the current quarter.
1.-The board also authorized the nee
essary formalities to transfer the gas
leases and property of the company TO
Public Service tGas Company Gall the
stock of which is owned by Public Serv-
ice Corporation), in the maner hereto
fore outlined in the statement made by
the president of the company Septem-
Der !.
THE cancellation of the outstanding
bonds of the company under the issue
of May /, 1908, and the mortgage secur-
ing the same, was authorized, as was
the execution of the new general mort
gage of the company, securing an issue
of $50, 900, 900 of bonds.
THE sale of IS, 600, 900 at par of the
new bonds to bankers was also ex-
pressly authorized, the proceeds of
which sale will be largely used to re-
tire the collateral gold notes of the
which fall due on the first
of November.
The action of the directors in plac-
ing the company upon a s per cent.
dividend paying basis was taken upon
the recommendation of the executive
committee after a careful considera-
ton by that committee of the favorable
showing which the ompan is making
both In the increase of it's gross bust
ness and the economical operation of
Its properties.
"As part of the comprehensive inan-
cial plan of the company the board
also authorized an allotment to stock
holders of record on October 1, 1909, of
25 per cent. of their respective hold
ings of stock at PAL. The stockholders
will be promptly notified of the details
of this offer. A very considerable num-
Der of the largest stockholders have
already notified the management of
their intention to taxi the alIotments,
and it is thought that a very large
proportion of the allotment will be
subscribed for.
THE proceeds of this sale of stock
will be used for further substantial
improvements which the company has
in contemplation"