The Northwest enterprise. [volume] (Seattle, Wash.) 1931-1952, 1943-05-05
Statement by Puget Sound
Power & Light Company

] ~
Complete disqualification Of
Puget Sound Power & Light Com
pany. upon the consumation of
which voting control of the Com
pany will be turned over to the
holders of the present SIS Prior
Preference and Sc Preferred
Stock over 10000 or more than
so percent, of whom reside in the
State of Washington. has received
the approval of the Federal Gov
ernmeRt's Securities and Ex-
change Commission. according to
a statement issued by Frank Nc
Laughlin, President of the Com
pany, in explanation of today's
SEC action.
When the disqualification Plan
is completed and the present pre-
ferred stockholders become the
owners of the Company, the pub
lie power zealots will no longer
be able to put forth blistering III
rades in appeals to passion and
prejudice against "so-called" Wall
Street domination by an eastern
holding company. They will thus
be deprived of the use of their
favored weapon of attack and
possibly in the future, instead of
name calling and lodging facts,
they will have to face the power
question strictly on its merits.
otherwise they will be throwing
bricks at their neighbors.
Mclaughlin went on to say that
the Plan for Reorganization of
the Company was, among other
things, conditioned upon the re-
funding of the present debt Sc
of the Company, author
ization for which was given by
the Securities and Exchange Com
mission on April 1, 1913. Approx
al of the Washington State De-
partment of Public Service had
been obtained prior to the SEC
action. The re-financing has been
and in addition to the
substantial saving in interest and
amortization charges of $4,000
Der year, the Company and its
INVESTORS have the very distinct
advantage of having the Com
lany's bonds maturing in 1872.
'ather than in 1949 and 1850.
Seattle-First National Bank has
'een appointed trustee of the
First Mortgage to
erve jointly with Old Colony
'urst Company, the present trus-
ee.
Briefly, the Plan for Recapitali-
alton, as amended. when approx
ID by the Court and carried into
fleet, which it is anticipated will
lot be prior to late Summer will
i've SO percent of the voting
lower to holders of the present
IS Prior Preference Stock, 91.2
percent of the voting power to
folders of the present Sc Prefer
ed Stock, and only 2.9 percent
# the voting power of the Com
amy to holders of the present
Common Stock. Further, the pres
mt Sc Preferred stockholders
will own 81 percent of the new
Common Stock and the present
Common stockholders will own
My 3 percent of the new Com
non Stock of the Company.
This redistribution of equity
in the Company will be
accomplished under the Plan, ac-
ording to Mr.. Mclaughlin, in the
way:
/. Holders of the existing Prior
Preference stock will receive an
additional one-quarter share of
'rior Preference for each share
low held, plus $3.50 in cash.
2. Holders of the existing Pre-
erred stock will receive 8 shares
# new Common Stock (Par Value
80 per share) for each share of
Preferred stock held.
3. Holders of the existing Com
non Stock (99.9 percent owned
by Engineers) will receive one
share of new Common stock (Par
Value $40 per share) for each 20
shares of old Common stock.