The sun., 1919-10-22
TEXAS COMPANY TO
CUT LARGE MELON
Will Increase Capital Stock so
p. G. and Reduce Par Value
Of Shares.
RIGHTS TO STOCKHOLDERS
Small Part Of New Issue Will
Be Held to Sell DO Employ
ees of Company.

An increase OF so per cent. in capital
stock with valuable rights to present
stockholders and a reduction of the par
value Of the company's stock was au-
thorized. yesterday by the directors of
the Texas Company during their meeting
subject to Its stockholders ratification In
a meeting called for November IS. The
capital stock will be Increased from $685.
100000 to s1ao.ooo.oo and the par
value Of the shares cut from. 500 each
to $25 each II the stockholders approve
the plan. a small portion of the new
stock Will be reserved for sale to the
company's employees Mt par from time to
time and the remainder offered for sub
scription by stockholders at par.
The amount to be given to stocl1hold-
ers for subscription at 500 a share will
be $42,500.0Oo. and that held for en-
ployees $2,500.000. Stockholders will
have the right to subscribe In the ratio
OF one share for two shares, making the
rights worth yesterday around 81 at the
final prices for the stock. The new stock is
to be paid for In three instruments and
the proceeds Of the issue used to retire
the company's outstanding debenture
bonds, amounting to s14,7ss. 900. and for
large extensions OF plant and new ac-
QUESTIONS Of shipping and other prop
erty. The right to subscribe will be
given to stockholders Of record on No
vember 20, and transfer books for the
stockholders meeting will be closed at
p. NJ. on November Z.
Resolution of Directors.
Pursuant to n resolution of the dl-
rectors." says the notice to sharehold-
ers, ''the stockholders OF the Texas Com
pany will meet at the office of the COM
pany in Houston on November is. at
IL A NJ. There will be submitted at
this meeting for action by the stock
holders two Recommendations of the d.
iectors as follows:
IAN increase OF the capital stock OF
the company from $S5.000,000 par &c
s130, 1000. 900 par by the sale OF a new
issue of S45.0O0.000 par. of which new Is
sue s42.500. 900 par shall be offered &c
stockholders of record at the close OF
business November 20, and the remain
der thereof. $4,000. 600 par, shall be sold
at par to a trustee for allotment and
sale from time. to time to employees OF
this company and Its subsidiary corpora.
tons under authority or with approval
pany, payment for all Of this stock tc
be made in three instruments, as fol.
lows:
First instalment, 30 per cent, on o,
before January 9.
Second instalment, 80 per cent, on o,
before April 8.
Third instalment. 40 per cent. on Oh
before July 8.
1.-THE amendment Of Article of the
charter of the company to make the pal
value OF its shares s25 Instead of $780,
ss5,OOO,OOo Stock Outstanding.
The company has outstanding $685.
100000 In capital stock OF 500 pa
value. The authorized stock was in
creased from $4,000. 900 to $1,000, OOt
in May. 1911. but by an act of the Texas
Legislature 1t was provided on July /
1914. that the authorized capital stool
OF, such corporations should be reduced
to- the amount actually paid In. The au
thorized amount of the company's stool
thus became S30.o00,000 on that date
That stock had been increased in June
1910, from $4,000. 900 to $4,000, 900 b,
payment of a so per cent stock diyi
dend. and to $50. 900, 900 in July, 1913. il
| payment for property acquired. In Jan
uary. 1916. 100000 new stock wa
SOaN " S'oNhhoiuciS at par, making IN
| total stock outstanding $4,000, 900, an,
| other increases in stock since that tim
have been as follows:
To $44, 100000 in March, 1915. by III
! sale Of s7.400.000 additional stock I,
stockholders at par, to $55,5O0. IL
November. 1916, by the sale of Sl1,1OO.
600 new stock to stockholders at par, I,
s6s.s75.ooo in July. 1917. by the sale o
$13,S75.000 new stock to stockholders a
par and to SS5,000,000 in December
1917. by the sale OF s13,S75,00O new
stock to stockholders at part and 81
100000 reserved for sale to employees
The debentures to be retired out o
the proceeds OF the new issue are tn,
remaining outstanding portion of SIS.
$4,000 of.6 per cent. convertible gol,
debentures issued at times out of al
authorized issue of $4,000. 900. The frs
S12 900, 900 of those debentures were sol,
in March, 1911. to stockholders of tn,
company at par. 100000 more wer,
issued in June, 1918 of which 1896, 90,
was exchanged for an equal amount O
collateral trust bonds OF the Industrial
Securities Company and $4,000 sold 70
cash at par to that company. In March
1914, $1,000.000 OF these debentures wer,
sold for cash at O premium to pay of
notes given In part payment for prop
critics in the Caddo oil fields. The othe
$4,000, 900 was sold in two blocks o
100000 each in January and October
1916. in both cases at a substantial