The Big Sandy news., 1917-02-02
oulsA. LAwaENcE COUNTY KENTUCKY FEBRUARY 2, 1917
ROCKEfELLERS IN THE.
CONSOLIDATION COAL CO.
100000 BONDS OWNED BY THEM
HAS BEEN CONVERTED IN
TO STOCK.

\ Through the purchase OF $1,000, 600
two-year convertible debenturo bonds
OF the corporation, the Rockefeller in
fterests are now the controlling factors
in the Consolidation Coal company, ac-
cording TO the Wall Street Journal
which on Monday published lengthy
article on the entrance of the Rookie.
fellers In both the Western Maryland
and the Consolidation Coal companys
affairs.
The bonds were taken by the Rookie
fellers two years ago, and they fall due
next week. and the Consultations s
stockholders have just voted the in
4 crease in the authorized capital stock,
(which is necessary to cover this con-
version.
The money advanced by Mr.. Rocke-
feller,' says the journal, "two years
~tago was used for several specific pur-
pos@s. 1t furnished an opportunity in
two years for the purchaser of these
bonds 10 convert them into stock, which
when accomplished, would increase the
Rockefeller holdings OF the Consol-
dation coal stock 10 above so per cent.
lof the total stock outstanding. When
llllA tOHNtISlOH lS accomplished next
week John ID. Rockefeller will be in
undisputed stock control of the com
pany.
The funds also 4permitted the Con-
solidation to go ahead with further de-
4 velopment Of mines and undeveloped
coal lands without which opportunity
It's business was bound To stagnate and
without which ii could not take full ad-
vantage of the big demand for soft
coal brought about by the war require
ments. and unprecedented Industrial
activit. Then again, these funds were
advanced on condition that all of the
coal mined frc n the new mines which
were TO be { led by the expenditure
OF the new N a5y was TO be shipped
over the Weste.l Maryland railway.
Secondly, with the Prospect of all this
new and PORTABLE business from the
Consultations new m. IS II was worth
while to save the Western Maryland
from receivership which was accord
ingly done and friendly reorganiza
tion planned. Everything has come
out about as planned The new mines
have been opened and are now about
ready to produce TO capacity. The Mes-.
tern Maryland has built new lines in
to these fields and is ready TO trans
port any amount of the output and
prepared itself to handle still more by
the recent purchase of the new steel
cars and heavy locomotives.
Western Maryland's earnings have
greatly increased, its property during
the last year under the new manage
ment has been physically improved and
the friendly, reorganization plan pro-
mulgated, Last, but not least, John ID.
Rockefeller secured control of the Con-
oscillation, already owning absolute
control of the Western Maryland.
There is no reason why this com
bination should not be profitable to
both companies and also for John ID.
Rockefeller. The reorganization of the
Western Maryland has placed the COM
pany financially on its feet and the re-
ducticn in fixed charges and other
Economies accomplished are calculated
to keep the property on a sound finan-
cial footing"
The contamination OF this change
not only the vast enterprises in the
Fairmont coal fields, but the big hold
ings of the company in the vast and
but slightly developed Eastern Ken
luChy tOdl lltluS, Ia lllt JtHhlHS olb-
trict The Watson interests at Fair
mont, originators of the Consolidation
company, will, 1t is understood, con-
tinue their holdings and associa tions
under the new management
The ionsummation of this change
means, local business men say, larger
credit, more flexible capital and more
extended developments of new fields.
The S7,000,000. of Z per cent. two
year. convertible debenture bonds of
the Consolidation Coal Co., will be due
on Thursday. The bonds were issued
February l. 1915, and are payable. both
principal and interest, in the stock of
j; the corporation on February /, 1917.
These bonds are all held by the Rookie
feller interests and their conversion in
to stock will place in the hands of these
interests about sS,000,000 of the Con-
solidation Coal stocks. This alone will
giye them little less than fifth of
the authorized capital of s45,000, 900, or
full one fifth, until all the stock recent
ly authorized is issued, which the man
agement says will not be done immed-
lately. There is an impression that the
Rockefeller's through their interest in
the Western Maryland may have
bought further into the stock of tho
Consolidation and that the sS,000,000
they will receive this week may not
represent their entire holdings. There
was report from New York that they
might have over fifty per cent of the
outstanding stock of the corporation.
This, however, is doubted in the best
informed quarters here, though there
was no one who cohld give official de-
'nial to the statement. Stockholders Of
the Consolidation took action soon af-
ter the bond isshe was Authorized two
years ago to increase the stoi.k to meet
It. Therefore, the increase made last
week had no bearing on this DEAL
Herald Dispatch.