Evening star., 1925-09-12
MERGER DETAILS
ARE ANNOUNCED
Western Power Corporation
Head Sends Letters OutIin-
ing North American Offer.
BY CHAS. p. SHAFFFTR.

Full details Of the plan whereby the
North American Co., which owns
substantial interest in local transporta,-
ton facilities, is expected to gain con-
troll of the Western Power Corpora
ton by November were made public
In letter to preferred and common
stockholders of the Western Power
corporation, signed by H. p. Wilson,
IpreSident
For each share Of preferred stock,
not exceeding $4,000 shares, Western
Power shareholders are offered one
share of per cent cumulative Ameri.
can preferred stock of $50 par value.
together with four -ffths of a share of
North American common
or each share of common stock
western Power shareholders are of.
Lered one and one-quarter shares Of
North American common.
For Western Power shareholders
VINO desire cash, underwriting ar
rangements have been made whereby
Central States Electric CORPORATION,
which IS large owner Of North Amer.
lcan stock, will pay SIS for each one
ana one-quarter share unit of North
american common and $40 for each
Tour-hfths share of North American
common.
November Date Agreed Upon.
Under the terms Of the arrange.
ment November 2 is set as the date on
Whlch the North American Co. is
opnged to accept all Western Power
common and up to 5000 shares Of
western Power preferred that is turn
ed over to the Bank of America as
depository, provided the deposited
stock constitutes majority Of all out
standing shares. both common and
preferred. In case the holders of a
majority of outstanding Western
Power common become parties to the
plan and like arrangements but a
majority Of all outstanding shares of
common and preferred together is not
deposited, the North American Co.
may, but is not obliged to, acquire all
the deposited common and preferred
stock upon providing more adyanta-
geous underwriting arrangements.
The holders Of a large amount of
the preferred stock and the holders Of
more than a majority of the common
stock Of Western Power Corporation"
stated President Wilson, have al
ready expressed themselves in favor
OF the plan and the board of directors
has voted to recommend its ac-
ceptance.
Personally, as a man who has the
T., i
lleve that the purchase of Western
Power Corporation by the North
American Co. viii be highly advan-
tageous to the 1,T50 600 people in the
territory served by Western Power
Corporations subsidiaries As one of
the oldest and strongest public utility
holding companies in the country, the
North American Co. is in position to
develop the enormous hydro-electric
zf
Power and the San joaquin Light and
Power to the utmost
Better Service Planned.
Just as Cleveland, ST. Louis, Nil
%aukee and other cities are now in
an enviable situation as to electrical
development because of the service
rendered by the North American sys-
tenn, so | hope will San Francisco,
Oakland, Berkeley, Sacramento, Fres-
no, Bakersfield and other California
cities served by Western Power Cor
poration subsidiaries find numerous
advantages in the successful conclu-
sion of present negotiations. The
North American Co. is in a strong
financial position; it possesses vast
purchasing power, and has a long
record of efficient and skillful man
agement. The resources of this or
the Western Power Corporation.
should prove of inestimable value to
the growth and development Of Cali
fornia."
Treasury Offer Closed.
Secretary Mellon has announced
that subscriptions for the issue of
Treasury certificates Of Indebtedness,
dated September Is, closed at the close
of business September 10. Reports re
ceived from the u Federal Reserve
banks show that for the offering,
which was for $3.50, 900 600 or there
abouts, total subscriptions aggregate
some 1858, 900, 900.
Allotments on subscriptions were
made as follows: Subscriptions in
amounts not exceeding $1,000 were
allotted in full; subscriptions in
amounts over 81 900 but not exceeding
$4,000 were allotted 60 per cent, but
not less than $1,000 on any one sub
scription; subscriptions in amounts
over $40 900 but not exceeding So, 900
were allotted so per cent, but not less
than $4,000 on any one subscription;
subscriptions in amounts over $4,000
but not exceeding $500 600 were allotted
40 per cent, but not less than $25 900
on any one subscription; subscriptions
in amounts over $500, 900 were al
lotted 80 per cent, but not less than
$200,0 on any one subscription.
More Failures in Week.
Bradstreet's compilation of business
failures for the week ended September
10 places the number at 2S6. three