The New York herald., 1921-05-17
D., l., W. ANNOUNCES
SEGREGATION PLAN
Coal Properties to Be Sold to
Glen Alden Coal Company
for $6O,O00,OO0
SHAREHOLDERS RIGHTS
w. M. Inglis of Railroad Com
pany Becomes President OF
Coal Concern.
SHAREHOLDERS RIGHTS

Tho Delaware, LackAwanna and West
srn Railroad has completed plans for
segregating its coal properties. Under
q contract. the execution OF which awaits
formal approval OF its stockholders. the
company's anthracite coal holdings will
bc sold to the Glen Alden Coal Com
pany, Inc. for $s0.o0o.ooo to be paid in
accordance with terms agreed 70 with
interest at 4 per cent. Tho Lackawanna
stockholders OF record at the close Of
business on Juno Is. 1921. with Be Of
fercd the stock OF tho coal company on
tho basis Of a share Of Glen Alden stock
for q share Of railroad stock at Is Q
share. payable on August 20. 1921.
William w. Ingiis. who has been vice
president in charge Of the mining and
coal department Of the Lackawanna and
who becomes president Of the Glen Alden
Company. outlined yesterday the plan in
q letter TO tho roads stockholders. It
was pointed out that the permission
granted recently by the Interstate Com
merce Commission for the capitalization
OF 1l5. .00o, 900 OF the Lackawanna's sur
plus was made contingent on tho segrc-
cation Of It's coal properties from tts
railroad holdings. The Lackawanna an
nounced It's intention to declare 100
per cent stock dividend IN July 70
holders Of the roads $42.277.000 N50
par value) stock. Both operations must
be approved in a special meeting OF its
stockholders to be held on July II.
Tho exercise Of the right to subscribe
to tho coal company'S stock by all
holders Of the Lackawanna's s46.54o out
standing shares would yield the rail-
road N.07 100. the plan generally fol-
lowing the lines made familiar by the
Southern Pacific's segregation OF its
oil properties In the formation Of the
Pacific OH Company. The subscription
rights to the coal company stock are
offered to stockholders OF record on
June is, but the declaration of tho road Q
100 per cent. stock dividend. II approved
as expected In the special meeting Of
the stockholders. will not be made until
July %. In other words. the coal plan
offers . holder one not two shares OF
| Glen Alden Company stock.
Tho Glen Alden Coal Company is a
corporation Of Pennsylvania incorpo-
| rated in 1885, said Mr.. Inslis In his
letter to the stockholders. I'VE pro-
pose to merge the company with the
Diamond Anthracite Coal Company.
| Pennsylvania corporation. which we
4
ity with the laws Of Pennsylvania to
Increase the number Of shares Of capita
stock Of the merged companies to Sl6, ,00
/ shares Of no par value.
I'VE shall offer this stock to the
stockholders OF the Delaware. Lacka-
wanna and Western Railroad Company
OF record at the close OF business Jun.
| is. 1921. on the basis Of one share q
Glen Alden Coal Company stock fol
each share Of railroad company stock
at IS share. payable on or before
| August 20. 1891. Arrangements have
been made with the Farmers Loan and
Trust Company Of the city OF New
York to act as transfer agent OF the
company and with the First Nationa
Bank to act as registrar OF the stoci
| OF the company.
ION or before Juno 20 next subscrip.
tion blanks will be mailed to all stock.
holders of record June is. lsn. for the
\ number OF shares to which they may
subscribe In accordance with the fore.
going plan. This company will b
operated by officials now employed ir
tho coal mining department"