The New York herald., 1920-01-07
UNION TANK CAR To
ISSUE s12,000,000
PREFERRED STOCK
New Capital viii Be Used to
Purchase Additional Equip
ment.

Announcement was made yesterday tha
the Union Tank Car Company will in
crease Its capital by an issue OF ,0O'
per cent cumulative preferred stock with.
out voting power. The directors have rec.
commended the increase to provide addi-
tional working capital. They have called
special meeting of stockholders for
January q to act on their recommends
tion
This is the first OF large issue OF new
securities to be announced for the year
1920 The stock will be offered to COM
mon stockholders at par on the basis of
one new share of preferred stock for each
share of common held by them.
The entire issue of Union Tank Car pre-
ferred stock has been underwritten by the
Equitable Trust Comnay.
Subscriptions may be paid for either in
full or in four equal instalments at the
option of the subscribers The first pay
nlent will be due March l. and three Addi-
tional tnstalments will become due April
l, May 1, and June 1 of this year. Stock
will be issued to buyers on the instalmen,
plan or as of June /. Dividends will ac-
crue from the date of such issue and in
terest at the rate of per cent a year to
June l. 1920, will be paid by the company
| to subscribers on all instalments pre-
lviously received.
| Henry E. FELTON,, chairman OF the Board
OF the Union Tank Car Company, in a
letter to stockholders dated January 2
say. that this company furnishes tank
cars for the transportation Of petroleum
! On account Of it's steadily expanding busi-
ness it has contracted for $500 all steel tank
cars Of 10000 gallons capacity each, which
are to be delivered in 1920 at cost OF
approximately $17,000,G00.
! The $12,OO0O0O derived from the pro-
posed Issue of preferred stock will be ap-
piled to the purchase of these new cars
and the balance Of their cost will be paid
out of current earnings. II has been the
policy of the company heretofore to finance
it's growth out of current earnings, but or
account Of the present federal taxes and
! existing conditions, with the consequent
need of additional working capital, the
directors of the company deem 1t advisable
tc increase the invested capital Of the com.
pany by the creation of this preferred
issue.
! With the addition Of the new cars. after
due allowance for depreciation; Mr.. FELTON,
says that the company will have approx.
mately s37.000.000 of assets. three times
the amount Of this preferred issue.
| The present authorized capital stock OF
the Union Tank Car Company is $25..
100000 common stock, of which $4,000, ,0O
is outstanding. The company has nc
preferred stock authorized or outstand-
ing and has no bonded or mortgage in
debtedness excepting SO, 600, 900 five per cent
equipment trust notes not yet matured
out of $7,500,000 issued August Is. 1917
! These 100000 notes will be retired Feb
ruary Is. anticipating by six months the
date of final payment, leaving the com
pany entirely free from funded indebted.
ness.
statement sent to stockholders says
that the company now owns 2o.5si cars
Earnings for the first nine months of 1915
amounted to s., ,l59, ,135 before deducting fed
eral taxes. The company has a surplus
of IS. .466, 800 1t paid s. share dividends
during the years 1914 to 1918, inclusive
and 81 share in 1919 on its outstanding
capital stock.