The Washington times., 1910-02-03

plaieus not a distribution or TIE new
shares pro rata among the old stock
holders alone, but among stockholders
ana certificate holders alike
The present capitalization Of the COM
Tany Is represented by.
stock drawing 10 per cent diyi-
f-er,it..5f-,., si-,l,--,5,,s
drawing 8 per cent -.--.------. . 5000
Bonds drawing 4 per cent?. 10000
Total -.----------.-. -------.---.--S5 SO 90
In exposing TINS plan. The Times
Showed that the present managers and
controllers OF the Gas company have
largely disposed of their stock, and in
its place have bought Up the certifi-
Gates.
A plan Of distributing the new stock
equally among the certificate and the
stockholders would give huge incre-
ment to the holders of the certificates
II wouIc not only add 10 the amount Of
holdings, but it would substitute for the
present certificates. which are of more
o. less doubtful legality, a stock whose
legality, had that law been passed,
would have been UnQuesti0uable-
Fails To Pass Congress.
Following The Times exposure Of this
plan, 30 failed to set through Congress
At- Atl-ttA --ltIa t'tL-ltA Ai-e4A
II was presently dropped. and no effort
Al its resuscitation has ever been made
Since that time, Until the Incubation
Of the present recapitaIization plan, the
insiders Of the company have been try
ing 10 work out a scheme which would
give them their good thing IN legal
form The project as now declared TO
be, outlined IS this:
First, to buy up the present Issue %
bonds, retire them, cancel the old mort
gage which secures them. and make a
new mortgage for S5000,000, under which
new bonds to Jhat amount would be
sssJsed.
To Distribute New Bonds.
Second, distribute these new bonds pro
rata among the present holders ef the
$4,000 Of stock and, perhaps. among
the holders Of the S2.600008 Of certificate
Whether the present certificates would
b called IN and the new bonds subsJi-
tuted for them IS not definitely stated;
f. this were done. It would give the Ger
udCdte holders a first mOrtEs &c bond
with lOnE term in place of tie Certifi-
Gates II, On the other hand the cerJifl-
Gates were left outstanding and the
bonds were given 10 certificate holders.
as well as stockholders as a Eratuity,
element in the property "a huge bonus,
which the stockholders would receive
prouortiouateIy less.
The present interest and dividend
charges OF the company total $4,000 a
. year II the new bond issue be sJ.bsti-
JUted in part for the certificates, this
charge for interest and dividends would
be increased 10 $4,000
If the new issue or bonds. on the other
hand, be distributed among stockhoId-
ers and certificate holders alike. then
the present interest-dividend charge
would be increased from S4o.oo1 TO &c.,
coo
May Get Cash.
In case the former plan is adopted of
leaving the present certificates IN ex-
istence, II IS expected there would he a
big cash distribution. from the cash
surplus, TO the stockholders
The project Is known To- be well ma
ruredr and on the best authority il is
declared that II viii he carried out uu-
less unexpected difficulties intervene.
There has been a most suggestive
speculative movement IN the present
Der cent bonds Of the company- which
strongly Te-euforces the report OF "a
prospective melon
May b Buying Up Old Bonds
me story GOES mat the insiders OF the
company, IN anticipation or carrying
out this plan of reorganization. have
been quietly buying Up the old bonds, 50
as 10 be able 10 obtain consent 10 their
retirement and the substitution Of a
much larger bond issue
On account, II l. stated, OF this quiet
buying movement, the prices of the
bonds nave Eene forced mp TO about no.
which point they reached very suddenly
last month The certificates, which
draw q ner cent. while the bonds draw
only (, T.. 10 a lower quotation in the
market, indicating that for some IN
IerestinEy reason, the bonds were espe-
CiaIIy Necessary TO the success of the
new project
Whether the company has legal au-
TlOrIty 10 issue new and larger mort
gage Is considered a matter Of some
doubt and there has been InJimati0u
mat legal steps viii he taken TO prevent
The plan being carried out
Members Of Congress who have been
informed Of the plan have been much
interested and have threatened an ef-
Tort TO induce the Government legal de
partment 10 stop the proceeding