view raw text
CONVERT STOCK INTO BONDS Lexington Preferred Shareholders Agree on Action — Hope to Stage Meeting in Fall. LEXINGTON, Ky., July 2— Holders of preferred stock in the Kentucky Association, which controls the Lexington race track, met here last week and came to a decision to convert their stock into bonds and thus take control of organization and the track. Semi-annual dividends have been passed four successive times, beginning with September, 1932, and the preferred stockholders have the privilege of demanding a settlement after the passing of three successive dividends. The preferred stock, of which there is 00,000 worth, may now be converted into bonds and the bondholders will thus hold a mortgage on the track. . At last weeks meeting of a group of stockholders, Thomas Piatt presided and was authorized to appoint a committee of three, including himself, to confer with officials of the American Turf Association, which holds. a majority of the common stock, in the hopes of making an amicable settlement of the Kentucky Associations affairs. The other two committee members named are S. S. Yantis and Victor K. Dodge, both of Lexington. They will make an effort to confer with A. T. A. officials and will report back to holders of preferred stock at a meeting tentatively set for Thursday, July 5. It was the hope of the stockholders that the matter could be cleared up in time for a Lexington fall meeting, but just now this is a doubtful matter, as the law permits the American Turf Association ninety days before making settlement after the preferred stock is converted into bonds. If the A. T. A. takes advantage of this period of grace, it may be impossible to arrange a fall meeting.
