The New York herald., 1921-09-28
EDISON CO. SEEKS !
$3O,O0O,OOO BONDS
United Electric Joins in
Asking p. s. Board for
Similar Issue.
TO AID CONSOLIDATED
Gas Company Would Retire
40 Million Short Term
Securities.
TO AID CONSOLIDATED
DECISION is WITHHELD
Exchange of Proposed Securi-
ties May Put Big Sum in
Gas Co. Pocket.

The New York Edison Company and
the United Electric and Power Com
pany. which serve electric current to
Manhattan and The Bronx. have ap-
piled to the Public Service Commits
sion for authority to issue $3O, 900, 900
in first mortgage bonds each as part Of
a $5o.o0o,oO0 or $50 100000 plan for
financing the Consolidated Gas system,
1t became known yesterday when a
hearing upon the petition was held
before Commissioner Oliver c. Semple.
This is the first bond issue undertaken
by the Edison Company in eighteen
years
The primary purpose Of the issues,
according to the statement OF Rob-
ert A. Carter. vice president Of the
Consolidated. before Commissioner
Semple is to enable the Consolidated
to meet approximately $40.000.o00 of
short term securities maturing in the
near future. s25, 100000 OF which is due
the National City Bank In December.
Commissioner Semple adjourned the
hearing subject to call without decision.
Approval must be by majority Of the
entire commission.
The Consolidated end National City
interests arc closely affiliated. and 1t Is
expected that a syndicate to handle the
Edison issue. IL approved. will be headed
and managed by the National City, which
Is named as trustee IN the petition and
obligations to which. shouting to s5.-
100000. would be discharged through
the proceeds OF the issue.
According 10 an agreement among the
Consolidated. the Edison and the United
companies, copy ~ which was sub
initted to the commission, the financing
plan affecting the two issues new sought
would be as follows:
The United would issue sac. .000, 900 Of
first mortgage gold bonds at per cent
per annum, maturing in 1895 and re-
deemable on any interest date at 105 per
cent. Tho Edison company then would
acquire the United bonds at par by de-
livery of two demand notes---onc for
20.lAS.000 TO take up the United's out
standing securities held by the Con-
solidated TO discharge The United's debt
to the Consolidated. and the other for
ss,S57.09o TO discharge the Uniteds ohii-
cation to the National City, 70 discharge
$4,000 In real estate mortgages and to
reimburse the United for moneys ax-
pended from fits treasury amounting TO
SO, 500. The third step would be the
Edison issue OF s30.0o0.o 900 to be sold
to the public. the proceeds from which
would be used in payment of its demand
notes and to increase its capital stock
sufficiently to acquire the outstanding
stock of the United held by the Con-
golidated, the Consolidated agreeing to
accspt the Edison stock in exchange FOR
the United stock.
The Edison proposes. that its issue
shall consist OF first lien and refunding
mortgage gold bonds. secured by the
l5dison's real estate, plants. distributing
system and franchises and the United
bonds, which, I'm turn, are secured by
the real estate. plants. distributing sys-
tenn and franchises Of the United. The
| bonds would be issued in one or more
series. the first to be Series A." and
would mature in twenty years. bearing
interest at the rate Of per cent. per
annum. and be redecmable at the option
OF the Edison company on any interest
date. upon sixty days notice at 1914
per cent. within the first tcp years, and
at los per cent. thereafter.
Several minor notifications In the
petitions were agreed to before the Com
missioner yesterday. 1t is understood
that one os the features which the COM
mission will take into serious considera-
ction before making rs decision will be
the proposal to exchange Edison stock
for the United stock owned by the Con-
solidated 1t was stated at the commis-
sion's offices that 1t appeared by that
arrangement that the Consolidated would
receive s5.295.000 worth OF Edison stock
| for United stock, which cost the Con-
solidated Only s3,620,000, thus enabling
the. Consolidated to pocket s1,675.0oo
| through q substitution Of stocks Of COM
panies which are virtually its sub
salaries. ~
| 1t Is expected that the Edison Offer
| ing Is scheduled tentatively for some
40 "a In tha first ten days OF October.