The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-01-02
PAGES
REVEAL TERMS
IN REVAMPING
OF WILSON CO,
Arrangements Disclosed to
Stockholders in Special
Letter.
BgT ~ Special

1E Z mic HN"'NNA
CHICAGO, Jan. 2-Complete and
detailed information regarding the
proposed capitalization plan for
Wilson & Co, third largest packers
in the country, is contained IN a
special letter TO stockholders sent
to all classes of stockholders today.
II is pointed out that the plan now
proposed. which wat announced
after a meeting of the board on
Dec. Il, is considered TO be in the
best interests of all classes Of stock
holders. It is also emphasized, how
ever. that because of the present
sound financial condition of the
company, a recapitalization is not
necessary from the standpoint of
the operation Of the company itself.
Briefly, the plan contemplates a
classification Of the present 227,
248 shares or z per cent 500 par
value preferred stock into 324,78
shares of 6 per cent no par value
preferred stock and the reclassihca-
ton Of 1926 shares of no par class
A stock so that each share of class
A stock becomes five shares of COM
mon stock, the 434, 1888 shares of
the present no par common stock to
remain as common stock. The to-
tai amount of common to be initial
~ outstanding will therefore be
2.0O1 ,163 shares.
The present 7 per cent preferred
stock will have accumulated divi-
dends amounting to s26.25 per share
as of Feb. 1. Under the proposed
plan, the preferred stakeholder will
receive for each share of his pres
ent preferred 1892 shares of s per
cent preferred stock. The 6 per cent
preferred will be entitled to cumula-
tive dividends from Feb. l, 1885, and
will be callable at 500 per share and
accrued unpaid dividends.
In brief, the carrying out Of the
plan would eliminate all accumu-
lated dividends and make it posi-
bic for dividends to be paid on all
classes of stock when earnings be-
yin oNaAAUb4C 1OA Vic DAl DOOCr LllC I
points out.
Mr.. Wilson also explained that
stockholders should keep in mind
that the company's working capital
ought not to be decreased by any
immediate substantial payment of
accumulated dividends because of
the fact that, in view of higher in
ventory costs required in the bust
ness, it is necessary to conserve
such capital.
MI. Wilson explained that under
the plan the preferred stockholders
will be entitled to greater total an
nual cumulative dividends than at
present and that the Glass A and
stockholders, who have re-
ceived no dividends since their
stocks we're issued in 1926, will be in
a position to receive dividend pay
ments which, his letter states, it is
hoped can be inaugurated early in
1885.
Mr.. Wilson'S letter also points out
that the company is asking for no
deposit of stock at the present time,
but requests that proxies be sent in
promptly by stockholders. Consum-
nation of the plan depends upon
favorable action by holders of at
least a majority Of each class of
stock. The plan is to be voted on
at the stockholders annual meeting
Feb. 10, 1885.
The long-term obligations of Will
son & Co, including the first mort
gage 6 per cent gold bonds, bonds of
the subsidiary companies, and
minority stock interests. have been
reduced from a total of 500 1913 ,615
on Feb. 27, 1926. to a total of S19,-
585.563 on Oct. 81. 1884, this latter
amount including bonds of the COM
pany and subsidiaries in the treas
ury amounting to 1892, 500. This
reduction has been brought about
principally through sinking fund
operations.