Hear Merger Plea of Cutlery Firms:
Wiss and Heinisch Companies Offer Utility Commissioners Testimony on Consolidation Application.
Latter Concern in Difficulties

The Newark Evening News, January 5, 1915

1915-01-05 Hear Merger Plea of Cutlery Firms

Testimony was heard by the Board of Public Utility Commissioners at Trenton today upon the application of the J. Wiss & Sons Company and the R. Heinisch Sons Company for approval of a proposed merger of the two Newark companies, both engaged in the manufacture of cutlery.

The board reserved decision pending the outcome of a meeting of the stock holders of the Heinisch company, called for next Monday to ratify the proposed merger. The stockholders have already agreed informally, though in writing, to Heinisch company will in effect be absorbed by the Wiss company.

Testimony submitted to the board today indicated that the business of the Heinisch company has been going behind for a number of years and that difficulty has been experienced in attempts made to secure additional working capital with which to continue the business. The business has been operated at a loss since 1910, the net loss for the year 1914 being placed at $5,000.

J. Wiss & Sons, Co. was incorporated in 1900 and has an authorized and outstanding capital stock of $200,000. Its principal office is at 33 Littleton avenue, Newark. The R. Heinisch Sons Company was organized in 1892 with an authorized capital stock of $200,000, of which $119,600 is issued and outstanding. Its principal place of business is at 109 Bruce street. Frederick C. J. Wiss and E. A. Heinisch are the presidents of the respective corporations.

In testifying as to the condition of the Heinisch company. President Heinisch produced a statement showing that on January 1, 1910, the company had net assets of $100,289. In 1911 the net assets were $97,348; in 1912, $85,447; in 1913, $82,825, and at the beginning of the present year, $80,924. The company has paid no dividend in four years.

Under the terms of the proposed merger the consolidated company will retain the name of J. Wiss & Sons Co. it will have an authorized capital stock of $400,000, consisting of $300,000 of common stock and $100,000 of preferred stock bearing six per cent, cumulative dividends. The basis of transfer proposed is that the holders of stock in the present corporation of the Wiss company will receive an amount of common stock in the consolidated company equal to their present holdings.

The net assets of the Heinisch company are to be determined according to a method outlined by the board and this amount divided by 1,196, the number of shares of Heinisch stock now outstanding. The quotient thus arrived at will represent the amount of stock in the new company to be issued for each share of Heinisch stock.

In determining the net assets of the Heinisch company the real estate and buildings are to be appraised at $65,000.

If the consolidation is effected on the lines proposed the directors of the new corporation will be Frederick C. J. Wiss, who will be president and treasurer; Fanny B. Wiss, who will be secretary, and J. Robert Wiss.