Evening star., 1936-09-29
ATLAS TO MERGE
WITH AFF|L|ATES
New Investing Company to
Have Gross Assets
of $110,907, 900.
BY the Associated Press.

.
NEW YORK, September 2e.-Atlas
Corp, at its inception in 1928 pri-
vate investment concern with capi-
tai of $4,000, announced plans for a
merger with three investment COM
pany affiliates and creation of a new
corporation with gross assets of sll0,-
GOT 900.
Announcement of the program, de-
scribed as the final step in simplify
ing the Atlas corporate structure, was
made by Floyd B. Odlum. president.
The three units to be merged are
Pacific Eastern Corp, formerly Gold
man-Sachs Trading Corp; Shenan-
doah Corp. and Sterling Securities
Corp, in which Atlas has held con-
troll for some time.
Odlum, former Salt Lake City at
torney. and George H. Howard, presi-
dent of United Corp, public utility
investment unit, jointly founded Atlas.
Vote Called October 20.
The agreement of consolidation,
which will be voted by Atlas stock
holders on october 29, provides for
organization of a new Atlas Corp,
with authorized capital of 100000
shares of new per cent preferred
stock, $50 par, and 100000 shares of
new common stock. S. par.
There will be issued at the time of
consolidation 470.164 shares of pre-
ferred and 4,499,265 shares of COM
mon stock. There will also be initially
outstanding 1881 ,073 option warrants
to purchase an equal amount of the
new common stock at s25 share.
Holders of Atlas present common
will be offered new common stock
share for share, and on similar
basis, holders of the present SO pre-
ference stock, series "a" will be in
vited to exchange for the new S6 pre-
ferred stock.
For each share of capital stock of
Pacific Eastern Corp. there will be
exchange of lao of a share of new
per cent preferred stock of Atlas
and "a of a common share.
Holders of cumulative optional So
convertible preference stock, series
1929, of Shenandoah Corp. will be
offered for each share now held one
share of Atlas preferred and 4-10 of
a share of Atlas new common. For
each share of Shenandoah common
there will be offered 17-100 Of share
of Atlas common.
Duplications to End.
For each share of Sterling Securities
So first preferred stock one share of
Atlas preferred, for each share of
S120 preference stock l5-l00 of a
share of Atlas preferred and 4-l0 of
a share of Atlas common will be Of
fered. Holders of Sterling Securities
class "a" and class "B" common
stocks will receive for each share
23-10o and 40 of a share respectively
Of Atlas common.
The consolidation. Odlum stated,
will eliminate duplication of corpo-
rate expenses and simplify the prob
lens of management"
Application will be made to list the
new Atlas stocks and the option war
rants on the New York Stock Ex-
change.
Since organization Atlas acquired
control of % investment companies
These, with the exception Of the three
to be merged and its Canadian SUBJ
sidiary and the Yorkport Corp, have
been dissolved or otherwise disposed Of
On a consolidated basis as of Au-
gust 81, according to Odlum, indicated
net assets applicable to capital stocks
of the new company to be outstanding
we're s102,159,361. equal to s17.48 a
share on the common after making
provision for the preferred at $50 a
share.
The new company will be headed by
Odlum. L. Boyd Hatch, an associate
will be executive vice president. They
will serve on the new board with Os-
valid L. Johnston. New York attorney
Gen. Robert E. Wood, president OF
Sears. Roebuck & Co., and Samuel
zemurray. managing director OF
United Fruit Co.