Evening star., 1941-09-04
Plan 10 Integrate
ST. Louis Utility
Units Is Filed
Ogden Corp. Proposes
Property Deal With
North American Co.
BY the Associated Press.

NEW YORK, Sept. Am the fina
step designed to take Ogden Corp.
formerly Utilities Power e. Light
Corp, out of the electric power
business, the company today is fl
ing, simultaneously with the S. E
/ c. in Washington and the Missouri
/ Public Service Commission at JEFF
ferson City, a plan for sale of its
gas and electric properties in the
st. Louis area.
Joint proponents of the plan are
Ogden Corp, Laclede Gas Light
Corp. and Laclede Power & Light
Corp. Ogden owns the majority OF
outstanding common stock of the
Laclede companies.
The plan contemplates sale OF
Laclede Power & Light electric
properties to Union Electric Co., a
subsidiary of North American Co.,
operating in the St. Louis area. 1t
also calls for vesting in a reorgan-
lied Laclede Gas Co. suburban St
Louis gas properties now belonging
to North American Co.
Agree in Principle.
The plan says Union Electric and
North American have agreed in
principle to the advisability of such
gas and electric integration, but no
agreement has yet been reached
with them either as to price or pro-
cedure to accomplish such purpose
Of the Utility Holding Company Act. -
L. Wade Childress, president of
the present Laclede Gas Co., and
other directors will continue in the
same positions with the reorganized
Laclede Gas and the plan provides
that any shares of common stock
of the company received under the
proposed reorganization by Ogden
or Laclede Power g. Light will be
offered for sale within one year
after the completion of the plan
to residents of the State of Missouri
at price to be subject to approval
at the time by the Securities and Ex-
change Commission as fair to both
the seller and the purchasers"
This provision" Childress said
in an announcement, will assure
that control of this important local
enterprise will return to st. Louis -
Clifford Harrod, president Of
Laclede Power & Light, said
Under today's emergency condi-
tlons complete interconnec-
ton Of the electric properties in
this area, so that the full capacity
of both systems can be used, in the
most effective way during all hours"
would tend to relieve the defense
burden on the power industry.
He also expressed hope the well
fare OF the majority of employees
of Laclede Power will not be ad-
versely affected"
Power Sales Increase.
Power production and sales are
constantly increasing and more men
and women are being employed in
that industry, so that most OF our
employees should have no difficulty
continuing in the electric power
business.
THE plan, however, contemplates
reasonable severance compensation
for those employees who might be
adversely affected by this consum-
nation y"
Under the plan, which Childress
said he believed satisfactory to large
holders of the company'S securities
present outstanding $4,000 900 of {
per cent refunding bonds and S23..
100000 of first mortgage 5l2 pei
cent bonds will be paid off in cash
the plan also provides for cash pay.
ment of $3,000,000 of collateral trust
6 per cent notes, but points out {
change in the integration propose
might necessitate their payment ir
common stock of the reorganizec
company.
New Issues Proposed.
The reorganiZed company will is.
sue S23, 100000 in first mortgage 81
per cent 20-year bonds, $1,000 ,00t
par value of per cent convertible
preferred stock and 514,150 no pal
common shares.
Book value of the assets of Lac.
lede Gas on June 80 last was S64,
899,878, of which S57,749,890 wa!
fixed assets. Ogden now hold
about "A per cent of the votins
power in Laclede Gas. BY the re-
organization, and if all the stocl
offered to the Missouri public is sub
scribed, Ogden's voting power,woult
be reduced to IL per cent, the an
nouncement said.