NEW PIERCE-ARROW ISSUES.

The New York Times
November 7, 1916

Present Bonds to be Replaced by Stock in Corporation.

The Pierce-Arrow Motor Car Company of Buffalo will be taken over shortly by the Pierce-Arrow Motor Car Corporation, which has been formed with 100,000 shares of 8 per cent. convertible preferred stock and 250,000 shares of common without par value. A syndicate headed by J. & W. Seligman & Co. will underwrite the new issues.

The preferred stock will be redeemable at 125, and will be convertible into common share for share. It is provided that for every dollar in dividends paid on the common stock in excess of $5 a share there shall be set aside $1 for the purchase of the preferred stock. This preferred stock, when acquired, will be exchanged for common, and will be considered available for any stock dividends which may be declared. All of the stock of the existing company will be acquired, and arrangements are being made to retire the outstanding $1,250,000 of 6 per cent. bonds on Feb. 1 next.

George K. Birge, now President of the Pierce-Arrow Company, will retire, to be succeeded by Colonel Charles Clifton, now Treasurer of the company. Otherwise the existing organization will remain unchanged.