Omaha daily bee., 1917-12-10
S4.Oo0.00O DEAL
FOR NEWSPAPER
union NOW OFF
Eastern FinanCiers Fail to Ex-
ercise Option on Stock and
Property of Omaha News
Service Company.

WV WV
Negotiations for the sale of the
Western Newspaper Union. with its
principal Offices in Omaha, to New
York financiers have been declared
of. The reason assig..ed is that the
intending purchasers failed to exercise
their option.
According to announcement last
night the late George A. Joslyr
shortly before his death gave an op.
ton on the entire common stock oi
the corporation. amounting to nearly
$4,ooo,00o, to Herman Kohlsaat Of
Chicago.
This option was renewed by the
heirs and legatees of Mr.. Joslyn and a
time limit Of December |, 1917 fixed in
which to close the transaction.
Three legatees, the Visiting Nurses
association, the Child Saving insti.
tute and the Old Peoples home, held
$4,000 each of the stock of the news;
paper union. The boards of directors
of these institutions consented to the
sale of their stock.
Earned Eight Per Cent.
Practically all of the rest Of the
stock was held by or for Mrs. Joslyn,
widow of the founder of the company
II is understood that Mrs. Joslyn was
to receive a figure less than par for
her holdings, but that she insisted on
the legatees being paid face value for
their stock.
According to public records the
company earned quarterly dividends
of per cent during the last five years
and had accumulated a surplus of
more than 100000. This in ordinary
times and under conditions making a
continuance OF the earning capacity OF
the company reasonably certain would
have fixed a valuation of approxi-
mately $500 per share on the stock.
Buy American In September.
In the meantime the Western
Newspaper union. acquired by pur-
chase, all the stock and property OF
the American Press association. its
largest and practically its only com
petitor. That deal was completed last
September. The purchase price was
not made public. At that time the
announcement was made the con-
solida,io. had been effected because
the Western organization could oc-
cupy the SAINT field and by enlarg-
ing its Offices in numerous cities oc-
cupied by the American and es-
tablishing branches where the Ameri-
can was established, the service could
by more economically carried on.
Fish Tells of Deal.
Herbert H. Fish, vice president and
general manager of the company, last
night told of the calling off of the
deal. He said:
There is really not much of public
interest in it. Mr.. Joslyn during his
lifetime made an arrangement with
some eastern parties to dispose of the
Western Newspaper Union. When he
died the deal was pending and the
option had not expired. Subsequently
the parties sought and obtained from
the estate an extension of time and
the matter rested in that shape until
last month when it was expected the
transaction would be consume ated.
ut became necessary for the trus-
tees of the Child Saving institute. the
Old Peoples home and the Visiting
Nurses association each of which held
some of the stock of the corporation
at legatees of Mr.. Joslyn, to consent
to the transfer of their stocka
$50 confident were all persons con-
cerned that the deal would be COM
pleted that the stockholders were no.
tilted to put their holdings in a bank
so that it might be readily paid for.
That was dcne, but at the last mo-
ment the purchasers failed to exercise
their option and it expired December
|. All the stock was returned to its
owners and matters now stand in the
same position as before"
Board Not Notified.
Mrs. G. c. Belden, member of the
Old Peoples home board, said she
had not heard that the option had ex-
pired or that the New York interests
had failed to take over the property.
The December meeting of the board
was held Thursday, she sad, and at
that time no report was made.
The whole question of the REIN
vestment of the funds, Mrs. Belden
said, was left in the hands of the
Peters Trust company with power to
act, subject to approval of the board.
1t was understood that the stock
of all the legatees under the Joslyn
will were to receive par for their hold
ings. Each of them was willed $780,
900 worth Of the stock. The re-invest-
ment of the funds is said to have been
entrusted to the Peters Trust COM
pany by at least two of the boards