New-York tribune., 1922-11-15
Consolidated
Gas Company
To Sell Stock
SIS. 600, 600 6 Per Cent Gu
mt1lasive Preferred To Be
Offered mt Par to Com
sumers and Employees
2 for L Exchange Plan
Stockholders To Have Right
to Subscribe to $25, ,OOO.-
600 No Par Common

| George b. Cortelyou, president of
| the Consolidated Gas Company, made
| public late Yesterday letter TO stock
! holders proposing n change in the
capital structure involving an offering
of 500 600 shares OF new no par value
| common stock at $50 share, and 30o,-
| 600 shares of new 6 per cent c.lmula-
which is the par Of the issue. The
new preferred will be offered to en-
ployees and consumers Of the company.
policy which has already been
adopted by other important public
utility corporations, including the
American Telephone & Telegraph
Company and the New York Telephone
Company.
The total increase in the capital
stock will give the company an addi-
tional S40,00o,0o0 cash capital, which
is required for the discharge. of its
floating indebtedness, including an
issue Of 800, 900 900 of z per cent notes
! maturing December /; to capitalize
expenditures made out of income, and
to provide for further additions and
extensions to the operating system of
the company.
To Increase Common Stock
At present the company has an
authorized CT. tal stock of $125, 100000,
Of which 100000 is issued. Under
the plan the existing $500 par stock
will be changed into 100000 shares,
no par, so that the holders will re-
ceive two shares OF new stock for enc
Of old. Then the authorized common
will be increased to 100000 shares,
and stockholders will have the right
to subscribe to the additiona! 100000
shares at $50 a share to the extent
Of 20 per cent Of their holdings. Thus
holder OF ten shares OF par val'c
shares Of stock Of no par value, will
be entitled TO subscribe to four shares
! of additional stock, having TO par
value, at the rate Of 500 a share.
In his explanation Of the financing
program Mr.. Cortelyou said that the
! new preferred stock will participate in
any distribution Of earnings above 81
share on the no par value common
| stock st the rate of l per cent apnu-
ally for each 81 Of additional dividend
above 81 share paid on the common
1t is proposed TO have the 100000 ad-
ditional no par common shares offered
to stockholders of record at the close
of business on Saturday, December 9,
and that payments be called for in
| three installments, the first, of 40 per
cent, payable December 80; the second,
Of 30 per cent, on March Is, 1928, and
| the third, Of 80 per cent, on June Is,
! 1928.
Meetings Called
Two special meetings Of stockhold-
ers, to be held on December and 6, re-
| spectively, have been called to obtain
/ approval OF the plan, which was for
mally approved by the trustees of the
company yesterday. Discussing the de-
cision to offer the new preferred stock
to employees and the public, Mr., Cor
tslyou continued:
"Your company and its subsidiary
gas and electric companies have always
striven to maintain relations Of mutual
good will and helpfulness with their
employees, and have sought to promote
the welfare Of their employees in vari-
Gus ways. AS q consequence they have
loyal and efficient body of employees.
comprising about twenty thousand per
sons. 10 further increase this feeling
| Of common interest in these utilities,
which are 80 vital to the welfare Of the
great population centered here, there
| is no more effectual way than to give
| the successful management and pros
perity Of the business. With that end
in view the plan was formed to give
the employees the opportunity to OBJ
tain 6 per cent preferred stock, at en-
attractive price, which would have the
same element of security as direct
obligation, with the additional advan-
tage of participation in the expected
benefits TO be derived from increased
efficiency in operation. Similar rea-
sons have influenced the board OF trus-
tees In recommending that some por-
tion of this $4,000, 900 Of preferred
\ stock be sold, on similar terms, to the
consumers OF the company and its sub