Fergus County Democrat. [volume] (Lewistown, Mont.) 1904-1919, 1912-11-19
GREAT POWER
MERGER PLAN
ELECTRIC COMPANIES OF STATE
TO BE COMBINED IN ONE
BIG CONCERN.
IS AFFECTED
Butte Electric, Owning Local Com
pany, Important Factor In the
Merger Which Is Planned by the
Amalgamated Group-Other Conn.,
panies That Will BE included.


panies That viii BE included.
According to dispatch from Bos-
ton, plan for consolidating the Butte
Electric & Power. company with the
Missouri River Electric 4 Power COM
pany, the Madison River Power com.
pany, the Billings & Eastern Montana
Power company and the Montana
Power company. The agreement for
the consolidation has been entered in
to by the directors, and now only
awaits the approval of the stockhold-
ers, which will doubtless be given.
OF Interest Here.
This is Of interest in LewistOwn
for the reason that the Butte Electric
owns the Lewistown Electric & Power
company and the same interests con-
troll both the Butte Electric and the
Great Falls Power company.
One Hundred Millions.
The proposed new company, which
will take over all of those named, is
to be known as the Montana Power
company, and will be capitalized for
one hundred million dollars. Of this
SIS 100000 will be in common stock
and $25,000,O0O preferred stock, Z per
lcent cumulative, redeemable after
three years at $12O.
Discussing the details of this
gigantic merger, the Boston Dispatch
says:
"In case of voluntary liquidation,
the preferred is to receive 120 and in
all other cases of liquidation is to
receive par. In exchange for each
preferred share of Butte Electric
there will be issued eight-tenths of
a share of preferred stock and two
tenths of share of common of the
new concern, and for each common
share there will be exchanged four
common shares of the new company.
The agreement provides that $3,-
100000 cash is to be paid by the Mon
tana Power company stockholders and
for this preferred stock in the new con-
cern is to be issued at par. Both
classes of Butte Electric stockholders
are given the opportunity to purchase
this stock at par to the extent of so
per cent of holdings and such not
taken will be underwritten.
"A special meeting of the Butte
Electric stockholders will be held in
Newark, N. j., Dec. IL. The new
Montana Power company will be con-
trolled by the same people who have
directed the policies of the Butte Elec-
trio. Plans, so far approved, contem-
plate the early expenditure of $12,-
100000 to $15,000,00O.
&C. w. Wetmore will be president
and Max Hebgen, of Butte, vice presi-
dent and general manager of the new
company. Payments for new preferred
stock are to be called for Jan. IL.
1918. Some s20,300,00O preferred stock
will be held in the treasury and $47,.
$4,000 common stock.
John D. Ryan, head of the Amalga'
mated, and his associates, known as
the Amalgamated group, are now in
control of all these power companies
and the consolidation will bring all
subsidiary concerns and enter
prises under one general management
What Marony Says.
Discussing the proposed merger OF
the electric power companies, John G
Marony, of Great Falls, says the new
Montana Power company was organ
ized to take over the property of the
Missouri river power companies, the
Canyon Ferry and Hauser lake de
velopments and bring them into 6
|
and power developments of the Butte
Electric and Power company, this lat
ter company already owning the Mad
ison River and Billings & Eastern
Montana Power companies.
This consolidation is necessary and
desirable because of the financial diff
ficulties of the Missouri river com
panies ending in a receivership about
of n
Butte company took over the Missouri
River company's properties under
long lease, with guarantee of Ger
tain Indebtedness of these companies
The consolidation will enable the
discharge of all the Indebtedness al
once and the handling of the proper
economy.
Mr.. Morony said stock issues of the
Montana Power company that is to be
put out to cover everything would be
about $4.700,O00 preferred stock anG
$27 900, 900 common stock.
The new company will spend large
sums of money in line extensions ant
system of distribution and will give
much attention to the use and distri
button of power for irrigation projects
large and small, throughout the state
Mr.. Morony said the new consO'ida
ton did not include the Great Falls
Power comapny. He said the Grea'
Falls Power company would at once
prosecute the development of the larg
est power project on the continent a.
/ Great Fails on the Missouri river.
Work is to be pushed vigorously OF
this Job. The dam win be about 12s
foot IN hoivhf and topothor with thu