The Portland daily press., 1878-03-01
BY TELEGRAPH.
BATES MANUFACTURING co.
IMPORTANT SPECIAL MEET.
ING.
Measures to Make Up the Exist
ing Deficiency.

LEWISTON, Feb. pa special meeting OF
the Bates Manufacturing Company was held in
this city today, to act on the uestion OF reduc-
ing the capital stock, and on other subjects
growing OUT Of the recent disclosures of the
compauy's Indebtedness. About 100000 of
the capital stock of the company was represent
ed, all the large stockholders being present or
represented.
The meeting was called to order by Mr. Hill
dretb, the president. The clerk read the call
for tina meeting. On behalf of the directors
and with their sanction, the clerk of the board
then made statement of the business before
the meeting at the request of the treasurer,
first submitting the trial balance of the COM
pauy as made up under the direction OF the
late treasurer, Nov. 30, 1877. He then stated
that the debt of the company already, except
when sustained by the personal endorsement
of its principal officers, had not represented the
true Indebtedness of the company; that there
was in addition to such debt, O sum OF borrow
ed money registered upon a memorandum
book belonging to the corporation--the sum of
S26S, 900, but without the knowledge of any of
the directors. To represent this additional
liability, there was at that date cash in the
bank more than the principal ledger called for
to the amount of $6S,0OO, and the other $780,
900 was represented by obligations of the late
treasurer or of others, which in part could be
considered as having arisen out of previous
transactions of the corporation, but which
mainly represented transactions not directly
connected with the business of the corporation.
1t is not deemed probable that there will be
any ultimate loss from this transaction, but it
| became serious in view Of the addition of con-
siderable liability of the corporation already
| carrying as large debt as could have been
warranted under any circumstances.
On further examination of the accounts snd
thorough sitting of the value of the assets. it
l also appears that considerable amount of bad
i debts incurred during the past history of the
| company, had not been charged off to profit
and loss, and that the valuation of rather an
unusually large stock of goods made in refer
| ence to the Iwinter and spring demand, could
not be sustained and was not consistent with
| the rate of valuation which the directors had
reason to suppose had been placed upon them.
/ There might be a difference in Judgment as to
what valuation might fairly have been made,
but conservative statement such as was now
| required, would indicate that the quick assets
of the company, including therein any demand
that did exist against the estate of the late
treasurer were insufficient to meet all the liabl.
tiles in the sum of between 100000 and $500
i 600, and it would depend upon the method of
| valuation adopted at which point to place it,
AS the collection claimed against the late treas
urer must in any event be deferred, and in view
l of the deficiency of quick assets, and the need
of an active capital in the conduct of the affairs
l of corporation making SO very large product
as is this one, it is obviously necessary that a
large additional sum of money should be paid
in by the present stockholders, and the ques-
ton which must be acted upon at this meeting
| was in what manner and at what rate OF reduce
tionof the present share such money could be
| obtained.
1t was stated that during the past few years
great movements had been made in the mills
and works, and their productive capacity had
been very largely increased, and that the COR
poration needed more money only to warrant a
continuance of its recent profitable business.
| The subject of the rate to which it would be
necessary or expedient to cut down the present
/ shares had heen matter Of very anxious and
thorough consideration on the part of the
directors, and in view of the fact that to I'M
dertake to obtain subscriptions and to fail
therein by placing the rate of the present stock
too high, will be very prejudicial to the
interest of all, they had determined to submit
I plan which would give the company ample
means and place it in thoroughly sound
position, with this 10 view, that if there were
l stockholders who unfortunately might not be
able to take their proportion within the thirty
days proposed by law, the right to subscribe
1 for the new stock might have substantial
value To this end, after acceptance of the
act of the Legislature allowing such reduction,
and after very full discussion of the reasons
for and against the policy proposed by the
l directors the measures proposed by them
| were carried by very large majority in q
| meeting in which more than three-6fths of the
/ stock was represented.
ment. followed by a discussion by J. K. Fell
| lows of Lowell, Mr.. Baker, Mr.. MCMILLAN,
Rev. DR.. Miner, Mr.. Richardson, Mr.. Lawson
of Lowell, Mr.. Seabary of New Bedford, Mr..
Wentworth of Boston, and others. The dis.
cusson was kindly toward the late Treasurer
ON the part of all.
l The act of the Legislature was unanimously
1 accepted, and it was voted to reduce the stock
l IS per cent and issue $50 new shares, making
| the capital exactly 81 ,000 600.
1 d. N. Richards was chosen director vice
George Fabyau, and Jacob Edwards vice john
| Brewster
The meeting was entirely harmonious