The New York herald., 1922-08-22
CHESAPEAKE & OHIO
HAS FINANCING PLAN
Stockholders VIII Have Right
to Subscribe to $12,558,50O
Preferred Issue.

| A special meeting Of stockholders Of
the Chesapeake and Ohio Railway Com.
pany has been called for September rs
at which time ratification will be sought
by directors OF q plan to offer to COM
mon stockholders the right to subscribe
at par to the extent of 20 per cent Of
their holdings for about $12.b58.600 OF
new 6h per cent. cumulative converti-
BILE preferred stock, series A. Approval
of the Interstate Commerce Commission
will also be sought. The issue has beer
underwritten by Kuhn. Loeb & Co. and
tho National City Company.
The financing is In connection with I'M
provements to the main line track. plant
and structure. the cost Of which u put
at about $16.50o.000. the work to be
spread over q four year period.
A letter to stockholders regarding the
new issue says In part:
"rhe present authorized amount OF
your companys common capital stock
Is s155. .00O.0 900. of which $62,7s2. 600 is
outstanding, the residue having been au
thorized and reserved for future Issue
for corporate purposes. including the
conversion o. outstanding convertible
bonds. The present proposed aggregate
increase Of $S0.000.000 par value is TO
consist In rhe first instance Of preferred
this entire amount of preferred stock at
this time. but that separate series will he
issued over q period Of years as the
needs of your company require. the au-
thority to issue the new stock to be so
framed as to enable your directors to
take advantage OF market conditions
The approval Of the Interstate Com
merce Commission Is required V be
given to each issue as II Ia made As
preferred stock Is issued Il will be Of
fered to the common stockholders rata
bly,, and such stockholders as do not
care to subscribe will be given the right
to sell their subscription rights. In
this way the common stockholders will
have the opportunity to benefit from
Whatever advantages may be given the
preferred stock"
The plan provides that the amount OF
the preferred stock at any time shall
never exceed one-half of the amount Of
common stock outstanding on October
2. 1922, plus one-half of the amount of
any common stock issues in conversion,
in accordance with the terms thereof Of
any convertible bonds OF the company
existing on that date, plus one-half Of
the amount paid in, In cash or property
for any additional common stock there
after issued.
Dividends on the preferred stock are
payable January and July / at rates not
exceeding z per cent. to be determined
by the directors upon the creation Of
each series Stock Of the present series
shall be convertible at the holders op-
ton into common stock at any time,
share for share, up to thirty days prior
to any date fixed for redemption. The
stock OF this series shall be subject to
redemption by the company as a whole
on January I. 1898, or on any semi
annual dividend date thereafter, upon
not less than sixty days prior notice,
at a premium Of Is per cent. Of par and
In addition an amount equal to sh per
cent. upon the par value Of the stock
from the date Of issue thereof to date
Of redemption. less the aggregate Of all
dividends paid on the stock.