The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1912-02-14
cIRcUlAs LErrEss sEsr OUT
EXPLAINING T-E PLAN
certe-ristes = Eii-i-ston % the
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otoCs teo0el
With a view OF re~orEanixing ~
National Telephone company OF West
Virginia. and It's subsidiary compan
lee. circular letters explaining plan.
for doing so were mailed out yester-
day TO the various stockholders and
creditors of the company. The plan
was usbmitted by a committee com.
posed OF Messrs. Robert Dalzell. J. A.
Hess and s. W. Harper. and others.
This plan is considered an excellent
one and IL 10 thought II IL material
lies IL will save the stockholders con
siderable money.
Under this plan IL will eliminate
the $4,000. 900 common stock OF the
National Telephone corporation. IL is
claimed that the stock was issued
faudulently by men who were then
officers OF the company. As this
sum Of common stock is the principal
asset OF the proposed Continental
Telephone company. whose stocks
and bonds were Underwater to con.
siderable amounts in this city. IL will
be seen that the underwriters OF the
Continental stocks and bonds are
likely TO lose all the money they have
paid.
Unless this or some similar plan is
accepted by the stockholders and
bondholders of the National Tele-
phone company and its subsidiary
companies foreclosures proceedings
for all these properties are likely TO
begin in which event all the propert-
les will be disintregated and very
greatly reduced in value. IL is said.
Capitalists who have examined the
plan carefully. agree that IL is emil
nently fair TO all parties and is the
best plan that can be adopted.
Plan Of Reorganization.
The plan contempiates the organi-
zation of a holding company under
the laws OF West Virginia. having a
common capital stock OF $500, 900.
This company will own all the com
mon stock of three corporations TO
be organized under the laws of West
Virginia, II TO be called the West
Virginia company. another the Ohio
company. and the other TO be called
the Pennsylvania company.
The West Virginia company will
have n capital stock not to exceed
$1,000. 900. common and preferred. and
q bond issue not TO exceed $4,000. 900.
The Ohio company will have a capital
stock not 10 exceed 81. 900. 900 common
and preferred. and n bond issue not 10
exceed 81 600 900. The PENNSYLVANIA
company will have a capital stock o
to exceed $4,000. coo. n n bond issue
not to exceed $4,000. 900. In each Ease
the bond issues are 10 pay ) per cent.
interest.
The holding company proposes to
underwrite Sl.5O0.0 900 of the bonds OF
4 tho ANnEN AsrnrnF. x.nnl nAA - -
bonds of the Ohio and ST.
SOC. 900 of the bonds of the Pennsyl-
vania company. These companies de
sign TO acquire all the properties OF
the National Telephone corporation
and its subsidiary companies. and
they offer TO exchange their securities
for the securities of the National
Telephone company and subsidiary
companies on the following baiss:
In all cases receivers debts are TO be
paid in full. Other obligations are TO
be taken care of as follows:
National Corporation.
Bonds-GD Fifty per cent. in bonds
and 81 per cent. OF par in preferred
stock Of the new Pennsylvania com
pany: or.
t2D Thirty per cent. of par in cash
and 60 per cent. Of par in preferred
stock of the new Pennsylvania com
pany for par Of corporation bonds.
Preferred Stock-Fifty per cent
preferred stock in the new Pennsyl-
vania company for par of corporation
preferred
Special-Holders or preferred stock
OF this corporation will signify their
assent to this proposition prior 10
March !. 1912. in order to make such
assent binding upon us.
Pennsylvania Companies.
Under this classification bonds and
stock given in exchange are those Of
the new Pennsylvania company.
National Telephone Company Of Penn.
s~yivsnia.
Bonds-FIfty per az par in
bonds.
Pittsburgh & Allegheny Telephone
Company.
Bonds "a Eighty per cent Of par
in bonds ard o." per cent 81 par boz
preferred stock
Preferred stock -tI Sxty pr cent
~ pr 100 bonds or.
go Ten pr cent OF uar in cash
arf -' I-r c.r' 20 i-r N bonds
'omrsnr S-n, Ten p~r cent -
Bar r .ssrH.
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