The New York herald., 1922-11-15
CONSUMERS TO GET
GAS COMPANY STOCK
Consolidated Invites Employ
ees Also to Subscribe to
S4O,OOO,OOO Issue.
S5 RIGHTS FOR HOLDERS
New Financing Is Planned to
Meet Floating Debts and
Build Extensions.
S. RIGHTS FOR HOLDERS

The Consolidated Gas Company of
New York has completed plans for new
financing TO the extent of 100000 and
for readjustment of its capital struc-
ture under-whlch the company's 2oW
employees and consumers are asked to
become stockholders and whereby hold
ers receive subscription rights valued
at S each on the present stock based on
its current market price of $50 share.
The board of trustees. meeting yes
terday. approved a stock increase and
capital reimbursement as the best means
OF giving the company Ao.Moooo more
cash capital required to meet Its float
ing Indebtedness. including s20.oo0,0oo OF
z per cent. notes maturing December i
to capitalize expenditures made out OF
income and to provide for further addi-
tions and extensions.
Proposals to he Voted On.
Special meetings of stockholders have
been called for December and pecem-
ber to vote on the following proposals !:
1. To change the company's outstand-
Ing 1,250000 capital shares of 500 par
value into 100000 shares of no par
value, so that holders shall receive two
shares of no par value stock for each
share of stock now held.
2. To increase the authorized common
capital stock, as thus changed. from
100000 shares of no value to 100000
shares of no par value. stockholders of
record on date to be fixed to have the
right to subscribe at $50 a share for
oA hu of
stock to the extent of 30 per cent. of
their holdings of the new no par value
stock on that date. Thus, holder of
ten shares of the present par value
stock receiving in exchange therefore
twenty shares of no par value stock, will
be entitled to subscribe four shares of
additional no par value common stock
at the rate of $50 share.
3. To create an authorized issue OF
100000 shares of per cent. cumulative
participa ting preferred stock of the par
value of $50 and to offer it for SUBJ
scription to the employees and consum-
ers of the company or any subsidiary
corporation, under such terms, re-
strictions and for such consideration as
may later be decided upon.
Statement by CorteIyou.
This preferred stock" says the let
ter sent to the stockholders over the sig
nature of George b. Cortelyou, presi-.
dent of the company. will participate
In any distribution of earnings above
81 per share per annum on the no par
value common stock, at the rate OF 1 per
cent. per annum for each 81 of addi-
tional dividend above 81 per share per
annum on the no par value common
stock"
He added: 1T is proposed to have the
100000 additional shares of Ron-par
stock offered to the stockholders Of rec
ord at the close of business at IL o'clock
noon on Saturday. December Q, 1922,
and that payments be called for in three
installments the first of 40 per cent.
payable on December 80, 1929, the sec
ond OF so per cent on March Is, 1928,
and the third of 80 per cent. on June Is,
1928, with the privilege of anticipating
any OF such payments. To carry through
the plan and TO comply with all tech
nical statutory requirements, two meet
ings must be held and the approval OF
the holders of two-thlrds of the total
outstanding stock must be obtained.
I'm the case of the approval of the
plan by the stockholders it will be neces-
sary for them TO exchange their existing
certificates without delay for the new
non-par certificates, so as to be in
position to exercise their rights on De-
cember 80, 1922"