New Britain herald., 1929-02-12
MACHINE PLANTS
MAY AMALGAMATE
Continued from First Page)

President Pease said today that
the business in Hartford would be
brought to New Britain.
1t will be necessary for owners OF
two-thirds of common stock In the
New Britain Machine Co. to approve
of the project. Day, Berry & Reyn-
olds, the company's attorneys, and
Ernst & Ernst, accountants. have
advised officers of the company that
the amalgamation can be carried out
without any addition In the COM
pany's tax liability.
Net Earning for Year 40OS,t s6
In connection with the annual
meeting, President Pease has issued
the 33d annual financial statement
Of the company. He reports that net
earnings for the year, after making
full provision for depreciation, OBJ
solesct nee, taxes, etc. amounted to
$GO3,lS5. Dividends at the annual
rate OF : per cent were paid on
Class A preferred stock and divi-
dend of SIN cents per share was
paid on the common stock on De-
cember 81, 1928. During the past
year the company acquired for It's
treasury. Class A preferred stock
having par value of $7lS.50o and In
the preparation Of the balance sheet,
S42 shares of common stock previ-
ously acquired and heretofore shown
as IA deduction from outstanding
capitalization, has been included tn
"sundry investments" at the declar-
ed value of 81 per share. The COM
mon stool: and surplus has increased
from $i.565.2S4.5? on January l.,
1928, to $2,O.S.019.S2 on December
81, 1925.
Details Of AmalgamatiOn
President Pease's statement con-
tanning details of the organization of
the New Britain Gridley Machine
Co.. follows:
"A very important matter will be
acted upon at this meeting because
of the recommendation OF the board
Of directors and officers that the ma
chine tool business of the company
be separated from the other activities
Of the company and consolidated
with the machine business of The
Gridley Machine Co. Of Hartford,
Connecticut. The corporation to
which the machine tool business of
this company will be transferred, ac-
cordinG to the plan to be submitted
at the meeting. will be known rs
The New Britain-Gridtey Machine
60. or some similar name and will
be a subsidiary of and controlled by
The New Britain Machine Co.
through the ownership of eighty
thousand (S0.0OW shares of the
authorized one hundred thousand
I0O,O00) shares. Of which eighty
five thousand (S5.000) shares will he
outstanding at the present time. 1t
Is anticipated that the consolidation
Of the manufacturing operations Of
The Gridley Machine Co. with the
machine business of this company in
the Chestnut street plant will result
in economies in management and
increased profits.
Reasons for Change
"There are many reasons why this
action seems desirable to your board
of directors and to the executive
committee. Since the war. the activi-
ties Of the management have be-
come diversified to such 4 degree
through the development OF lines not
akin to the machine tool business.
that VI has seemed for some time
that IT might be wise to have two
organizations. each standing entirely
alone. and concent rating all its
thought and energies on its particu-
lar line of work. The management
of your company considers this an
Opportune time to combine the ma
chine tool business of your company
with that of The Gridley Machine
Co along the lines of the offer pre-
and that the disassociation |
of the activities of the company |
should be authorized With the |
thought in mind that this eventually |
would come about. physical assets
have for several years been depart
and actually separated to
a very large extent 30 that difficult
ties on this account are minimized. 1t
Is contemplated that the two or
will operate independent
ly and the personnel Of each organi-
zation will be made up from employees
of the present The New Britain Ma
chine Co. and The Gridley Machine
Co. who have had experience in each
particular branch of work. The char
acter of the business to he handled
by each company will be distinctive
In that all the machine building and
sales will be handled by The New
Britain Gridiey Machine Co.. and the