New Britain herald., 1920-03-05
STANLEY WORKS IS
 AFTER BIG MERGER
Wants $8,O0O,OOO Combine With
 Stanley Rule & Level

Plans for 8 proposed merger of the Stanley Rule and Level compa ny with the Stanley Works as a parent organization were made public by the directors of the factories late yester- day afternoon. Stockholders of the two corporations will receive notif- cations of the favorable actions of their boards and will be asked to vote upon the acceptance or rejec- ton of the offer of the proposition.
 Shares of stock in the Stanley Rule and Level company will be paid in seven per cent. cumulative preferred stock of the Stanley Works at a price still to be determined, but, as foretold in the announcement prob ably when a division of the assets re- served from sale is added to the sale price, ''at price substantially in ad- vance of the present market value of the stock. The shares have been re- gently quoted at from 425 to 450. The personnel of the Stanley Rule and Level company will remain practical ly unaltered, it is said, and the bus mess will be conducted as usual, with the exception that the merger will give the two sales forces an op- portunity to push the sale of similar lines of goods with more effect. The concerns are by no means competing ones but have a common interest which it is felt will be enhanced by the merger.
 Provided that the promise of the preliminary announcement holds good, and the stockholders receive more than the market value of the stock in assets to be distributed and preferred stock to be issued by the Stanley Works, the deal will involve seven or eight million dollars. The capitalization of the Rule Shop is two millions of dollars, though not long ago it received the right to increase to ten millions. InaSmuch as there are various questions of tax payments and reserves to be settled the figure has not been set. It will be at the stockholders meeting, within the next two weeks.
 Factory Statement.
 The following statement was re- leased by the Stanley Rule and Level company late yesterday afternoon:
 "The directors of the Stanley Rule and Level company and the Stanley Works have agreed to submit to their respective stockholders at stockhold- CTS meeting to be called within the next two weeks a proposition looking towards the sale of the manufactur- ing buS1IcSS or the stanley Rule ana Level company to the Stanley Works, in exchange for seven per cent. cu- mulative dividend non-voting pre- ferred stock of the Stanley Works.
 "The project will bear the favor able reco omnlendation of all directors and officers of both companies and, if favorably received by the stock holders, will result in the merger of the Stanley Rule and Level manu- featuring business into the Stanley Works.
 The price to be received by the stockholders of the Stanley Rule and Level company cannot at this time be definitely stated, because of various questions of tax payments and re- serves; but it is expected that u1ti- mately on the dissolution of the Stanley Rule and Level company the amount received by their stockhold- CTS from this sale. together with the assets reserved from sale, will amount to substantial advance over the present market price of the Stanley Rule and Level stock.
 '',The fact that the Stanley Works and the Stanley Rule and Level com-