Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1916-07-21
PHILADELPHIA ELECTRIC
REFTNANCTNG PROJECT
EMBRACES rs CONCERNS
Will Be a Pennsylvania Corpora
tion and It's Stock and Bond
Capitalization Will Amount
to $110,000,000
STOCKHOLDERS NOTIFIED

Detailed plans for the complete re-
financing Of the Philadelphia Electric Com.
pany to provide capital necessary for broad
extensions and developments In the COM
panys system were made public today. Jo-
seph b. Mccall. the president explained
the program TO be followed out, in formal
statement, and simultaneously letters were
mailed to all holders of the company's
trust certificates giving the details OF the
plan. The approval OF the Pennsylvania
Public Service Commission Is needed before
the readJustment becomes reality.
All of the plants and properties now held
by some 25 different companies, with the
Philadelphia Electric Company of New Jer-
sey at the head are TO be unified into one
corporation. This will be the Philadelphia
Electric Company, and will be Pennsyl-
vania corporation, operating under a char
ter of this State.
The refnanclng will be made under the
direction OF a syndicate of bankers, the
managers of which are Drexel Co. and
Brown Brothers & Co. The basis for the
reorganization was worked out by an en~
gineerng firm from Boston, which made
thorough investigation of the companys
physical condition It's properties and the
possibilities for It's future growth Upon
the report of this firm the details of the
scheme were based.
SYSTEM WILL BE IMPROVED.
Under the plan announced the authorized
capital stock OF the Philadelphia Electric
Company will be increased from $4,000
900 to S50.O00,0Oo and 8 per cent bonds to
the extent of $50, 900 will be Issued,
thereby making the stock and bond capital
ization Of the company S110,000,OO0. Tho
complete program will give the company
an additional working capital Of $50. 900
for the extensions to the business and the
Improvement of the system.
The mortgage of s6ooo0.o0o will be a
first lien on all the property Of the COM
pany now owned or hereafter acquired, and
will bear interest at per cent. Under
this mortgage S35. 900 of per cent.
bonds will be issued in exchange for S2S.-
276,500 of collateral trust certificates now
outstanding, to pay of s2.50o,0O0 of notes
and to provide part OF the additional work.
ing capital
1t has not been explained upon what basis
the present authorized issue of S25, 200, 900
of stock at par value Of s26, but with only
s22,5o paid in. will be exchanged for tho
new stock, Of which there will be $50. .o0o, 900.
CoMPANY's STATEMENT.
The formal statement, issued by Presi-
dent Mccall, gives the following details of
the working out of the plan Of relnancinE:
TT is proposed:
First. That the authorized capital
stock OF the Philadelphia Electric Com
pany (of Pennsylvanla) shall be in
creased from S25,000,000 to $4,000
900.
Second. That the Philadelphia Elec-
trlc Company (of Pennsylvania au-
thorize a bonded indebtedness in the
sum of 500, 900. to be secured by
a first mortgage which shall be n d.
rect lien on all its property then owned.
comprising the entire plant and system
IL now operates in he'city OF Philadel-
phia, and all property IL thereafter ac-
quires; the bonds to be in denomina-
tions of $1,000. $500 and 500, to ma
ture 80 years from their date, to be re-
deemable at 105 after five years, and
TO bear interest at the rate OF per
cent. except In the instance noted in
paragraph (c); approximately 335.-
900, 900 of the bonds to be presently is
sued and the remainder reserved for
the future financing of the company to
be Issued under restrictions properly
protective of the holders of the bonds;l
tho principal and interest of the bonds
to be payable without deduction for any
tax which the company may be required
to pay or retain under any present or
future law OF the United States or OF
the State of Pennsylvania.
Third. That the holders OF the sew
eral issues of trust certificates be given
the privilege until September /, 1916.
OF selling or exchanging their trust
certificates upon the following terms:
(a) The holders of Edison Electric
Gold 5s to receive $10SO in cash, or at
their option Sll00 face value Of new
per cent. bonds, for each $1,000 face
value OF said trust certificates;
(b) The holders of Philadelphia
Electric Gold 5s to receive $lO5O in
cash. or at their option $1,000 face value
of new per cent. bonds, for each
$1,000 face value of said trust GER
tlhcates;
(c) The holders of Philadelphia
Electric Gold Is to receive $3.50 in cash,
or at their option $3.50 face value of
new per cent, bonds. for each $1,000
face value OF said trust certificates, or
$1,000 face value OF new per cent
bonds. secured by the same mortgage,
for each $1,000 face value of said trust
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