YELLOW TAXI FINANCE PLAN.
|Topics: Yellow Taxi
The New York Times
December 22, 1922
To Retire Preferred Stock and Increase Amount of Common.
The Yellow Taxi Corporation of New York yesterday announced the details of its plan of recapitalization. The company, whose Board of Directors is made up entirely of local men, will retire the 5,500 shares of preferred stock now outstanding at $110 a share. The common stock, of which there are now 10,500 shares, will be increased to 100,000 shares of no par value. The present holders of common stock may exchange their holdings for the new issue.
A statement issued by the company yesterday says that a block of the new stock will be distributed on the New York Curb Market by Block, Maloney & Co., at $55 a share. The proceeds of the sale of this stock will approximate $2,500,000, and of this part will be used to retire the preferred stock and the remainder to purchase 500 additional cabs. These cabs will be purchased at once, as the order for them has already been issued. At the same time the company will construct five new garages in addition to the five already in operation.
Drivers and other employes of the company will be given the opportunity to subscribe for from one to five shares, to be paid for over a period of two years. Many employes hold the old common stock and will participate in the new arrangement.
|Connect with The Crittenden Automotive Library|