The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1912-06-29
SALT LAKE GAS
COMPANY To
Be ABSORBED.
Consolidation of Numerous
Corporations Under Name
of American Utilities Co.
Nearing Consummation.
TO HAVE CAPITAL
OF FORTY MILLIONS
Merger, Says Manager Clark,
Will Give Local Plant
Funds for Needed Exten-
sions in Service.
the organization Of the

" THROUGH the organization OF the
American Utilities company,
corporation now being formed, to
be incorporated under the laws of
Delaware. with an authorized capital of
$40,000,00o, Salt Isakers will receive an
improved and vastly extended service
Of gas for home and business use. 1t
is anticipated that within the next
week all the necessary details of the
big consolidation of the numerous COM
panies will have been worked out and
the new corporation will formally as
sumo control.
Companies Involved.
The men back of the gigantic enter
prise are c. B. Kelsey and j. H. Brew
er of Grand Rapids, Mich, who, under
the firm name of Kelsey, Brewer & Co..
already own and control a majority Of
stock in the following companies: Utah
Gas g. Coke Co.. Salt Lake City, Utah;
Boise Gas, Light & Coke Co., Boise,
Idaho; Valparaiso Lighting Co., Val
paraiso, Ind; Elkhart Gas & Fuel Co.
Elkhart, Ind; Winona Gas, Light &
Coke Co.. Winona, Mimi; Holland City
Gas Co., Holland. Mich; Jackson Light
& Traction Co., Jackson. Miss; Albion
Gas Light Co, Albion, Mich, Mime
sofa Wisconsin Power Corporation.
Consolidation Plan.
All of the stock in these companies
now held and controlled by Kelsey,
Brewer e. Co. is to be transferred TO
the American Utilities company, and
the intent of the promoters is to ac-
quire the outstanding stock of the va
rious corporations for the holding COM
pany under the following plan:
Upon a designated pro rata basis,
which varies as to the different conf
panles, to exchange stock Of the Ameri-
can Utilities company for stock of the
companies it is to absorb. In the case
of the Utah Gas & Coke company, the
transaction is placed on basis of
$1,000 par value of common stock Of the
Utah company for $500 par value of
common stock of the Utilities company.
the announced basis. the holder of stock
must make the transfer by July l, 1912.
Division of Stock.
The Utilities company will have its
capitalization of $4,000
900 divided equally into common and
preferred stock, the preferred stock
(6 per cent cumulative) being preferred
both as to dividends and assets For
The purpose of raising s725,0oo in cash
10 be used for corporate purposes, the
company will offer for sale at par
s795. 900 in preferred stock, subscribers
o which fund will receive so per cent
yalue in common stock without further
Manager !Tiew,
j. G. ID. Clark. manager of the Utah
company. said last night in discussing
he big deal;
This proposed consolidation. which
will without doubt be successfully
consummated as planned, means nuch
TO Salt Lake City. II means u great
strengthening Of. the local company
and Will afford the opportunity FOR
the acquisition OF funds with which
To greatly Improve the local plant
and largely extend our service. We
are now serving about 1900 custom
ors: we ought To be serving 10000 in
n city of this size. II every home
used gas the smoke nuisance would
be abated by more than 90 per cent.
There will he no changes In the man
agement OF the local plant. but the
consolidation will enable us to have
tho benefit OF the best talent in the
gas world for the consolidated COM
lContinued on Page Threal