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Show MORE DETAILS OF ISLAND CREEK COMPANY In view of tlv strong financial position of the United States Coal and Oil company com-pany net quick assets amounting at the present time to something over SI, 000.000 together with a steady Improvement in tonnage and net profits, there Is natural inquiry as to why the management proposes pro-poses a successor organization, tho financial finan-cial structure- of which Is entirely different. dif-ferent. There arc several reasons, and the management Is confident, that when the new plan Is carefully studied from every viewpoint. It will appoul to the sound business judgment of the security holders, says the Boston News Bureau. In the first place. It should be clearly understood that the proposal to offer securities se-curities in a. new company is not designed de-signed to curtail In any degree tho earning earn-ing power of the present securities, but rather so to divide the present stock into new preferred and now common that the present Fhareholder who does not desiro to change his position ma.y retaiti both classes of stock, whllo ho Is given opportunity to soil either one, according accord-ing to his desire to bo a $6 preferred "Investor." or a security holder anxious only to share in future possibilities. The United States Coal and Oil company, com-pany, as at present constituted, has 120.-200 120.-200 shares, par value S25, and $1,495,000 6 per cent convertible bonds. Exchanged Into stock there would be in round numbers num-bers ISO.OOO shares outstanding. Under the new arrangement there will be 150.000 shares of stock to represent the same property, as It is proposed to call In tho bonds, the bondholders having the prior privilege, of course, of converting Into stock. Tho "Island Creek Coal company will have 50.000 shares of preferred stock and 100,000 shares of common, tho capitalization capital-ization being 20.000 shares less than that of the present company. The new stock will have a oar value of SI, a nominal figure, and designed to do awny. as' far as possible, with the absurdity of meisuvlng th Intrinsic value of a. stock by the aid of its par valuf. In finance, value is measured It units of 100. hut. the directors naturally did not wish to raise the par value c their capital from $4,500,000 to 516,000,000, aa would have been necessary If the par value was made 3100, as this would hove Invited th hoBtlle criticism of those who would have cried out loudly against "watered" "wa-tered" capital. |