The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1879-07-16
THE DENNIsoN FAILURE.
Report of the Committee Of the Credit
OrS

consisting of Edwin Morey, of the firm OF
Morey s. Co., Boston, importers of chemicals
md manufacturers of supplies James Munroc,
Of the firm of James Munroe & Co., OF West
Auburn, shoe manufacturers, l. ?. Harrington,
Of Portland, president of the National Casco
Bank, Ara Cushman, president of the National
Shoe and Leather Bank, Auburn, L. Storey
Smith, of New York, attorney of the house OF
& Smalley, paper stock dealers,
of Manchester, England, and James NJ. Rob
bins, president Of the Manufacturers National
Bank, Lewiston, were appointed at the first
of the creditors to investigate into the
affairs of the company, and report what course
it was for the best interest of the creditors to
pursue.
Mr. Morey, the chairman, then offered the
report:
The undersigned, your committee, to whom,
at a meeting of the creditors of the Dennison
Paper Manufacturing Co.. held July 9th, 1879,
at Portland, was assigned the duty OF examin-
ing the affairs of said company, its liabilities
journed meeting of the creditors to be holden
at the same place on Tuesday, July 10Th, what
course is best for the creditors to pursue, beg
leave to submit the following report
The nature and importance of the investiga-
ton indicated very clearly the necessity of its
being pursued at Mechanic Falls, where the
property was situated and the business con-
Quoted. Your committee, therefore, met by
appointment at Mechanic Falls, on Friday, the
18th inst, and completed their labors Saturday
evening of the 18th inst, having, in the mean
time satisfied themselves, by such method of
investigation as seemed requisite and proper,
of the entire correctness of the statements and
schedules submitted by the company at the
general meeting of the creditors July 9th.
Every facility was extended by the MesSrs.
Dennison, by Mr.. Cram, the treasurer of the
Rifle Co., and by Mr.. Reed, the clerk, each
and all of them answering all questions pro-
pounded by the committee, fully and frankly.
The principal property of the company consists
of the four paper mills, Eagle, "Star," "Di-
amond,'' and 'Union,'' with their requisite
machinery, which is in fair but not perfect
condition; (some repairs, plainly desirable, evil
IDENTIFY waited greater prosperity; besides these
four mills there are two smaller ones, one used
for manufacturing pulps, the other for finish
ing paper. These, with the water power, may
properly be called the Plant. On these, to-
gether with the building occupied by the
Evans Rifle Co., from time to time has been
expended the sum of $507 600. They are under
mortgage to Messrs. w. III. Parsons & Co. fol
100000, and are also subject to unpaid taxes
of say $4,000 to $4,000. In ordinary times and
under ordinary circumstances, the equity OF
redemption would be a very important element
in fixing the percentage which this estate
could be made to pay, but the extreme depres
sion in paper manufacturing during the last
three years has rendered this class of property
almost unsaleable, and it is considered ex
tremely doubtful in the minds of your commit
tee whether anything could be realized for this
property over and above the membranes i
the sale was forced.
The direct liabilities of the company are
$500, 1927 90, to which may be added an approx
innate sum of say S65, 900, for which the com
pany are responsible as endorsers, and which
is fully described and set forth in the schedules
submitted by their attorney Mr.. Strout. an(
by him read at the last meeting of the credit
ors, July 9th. These schedules are now in thu
hands of your committee, and can at any tint
be examined by any one of the creditors witt
desires so to do; making total of 1926, 1929.
The personal property of the company con
sists of.
Stock in process of manufacture and
supplies. 5000. OBSERVATION-DISCLOSURES. ~, 944.o'
Fuel, lumber, horses, carriages, fixtures.
&C., as per schedule. ....,...... Ia, l5l 90
Aggregating exclusive of real estate SAG, S16.5I
Of this amount SO, 140 was in iron work
valuable only in event Of the works being con
tinued. The balance, say $4,000, was fairl.
appraised, the prices being what the article
could be purchased for in New York or Boston
sale in either city. Besides the amount abov
named viz. $46, $685., there are several out
side pieces of real estate, including the dwell
ing house of Mr.. A. G. Dennison and al
equity of redemption in the store occupied b.
Mr. l. A. Dennison valued in all at Sl4,275
making total of $61 ,091.55, which practlcall
are the available assets of the company, beinl
about 49, per cent. of the liabilities, provided
as above stated, they would bring the appraise'
value.
The company have in the hands Of W. II
Parsons & Co. of New York unsold pape
valued at 800, 9O9S0, but it is held for thei
acceptanees to its full value Also the com
pany are owners of Sal, 800 at par value o
Bowdoin Paper Cos stock, but as the marke
price of this stock would in no event excee'
par and the stock is pledged at about its pa
value, the transaction assumes the form OF
liability rather than an asset.
The Messrs. Dennison and Mr.. Cram ar
also owners of the capital stock Of the Evan
Rifle Co., but its value seems altogether pros
pective. The tools and machinery, costin
over 100000. are adapted to make this pal
ticular gun; failure and closing up the work
render this machinery of comparatively littl
| value. AT present the works are suspended.
Your committee have also considered til
claim of w. I. Clark of New York, for
bales of stock of the value of $70S.64 w
| find the stock was sent in excess of orders
was rejected by the company and held (prt
vious to their suspension) subject to the orde
of Clark, we have, therefore, not taken it 6
an asset.
To the consideration of the creditors you
committee submit the disposal of an item
| S11, O7144, which appears from the books to b
loan OF money and accrued interest belon.
ing to f. w. Dennison, son of A. T. DEM
son, being money coming from his mother
estate. The loan was originally made to A.
Dennison a Co., whose property was aftel
wards transferred to the Dennison Paper Co
while the credit of this account was not tram
ferred as it should have been. When til
company suspended no provision had bee
made to protect this boy from the cons
quences of this neglect. 1t would seel
just and equitable that he come in as gener
creditor, entitled to any dividend the estat
can pay, but it is the opinion of your commi
tee that your consent is necessary before b
can be entitled to even this.
1t would appear that if the appraised valr
OF the available assets were realized that I'll
estate would pay about 1S5 per cent, but tn:
if this realization took place at once it woul
take all the quick and working capital. Yol
committee having confidence in the integri
of the Messrs. Dennison and in their skill an
capacity as practical paper makers, beliey
that if time were given them larger percen
age would be realized to the creditors
enabling the Messrs. Dennison to bridge ovt
into more favorable times and save the pro
ertv from a forced sale. They recommer
that settlement be effected by the credito
accepting % per cent. of their several CLAIM
in four equal payments of 6, II, IS and
months from the LIST day of July, 1879, witho
interest. The notes to be signed by the De
nison Paper Co, and endorsed by A.
Dennson, A. T. Dennison and Calvin
Cram.
To enable the company to pay this divider
of % per cent. it will be necessary for the
during the next two years to realize the fl
.Ioh1n
100000, and obtain from their labors the
friends or their available resources the furth
sum of $4,000 to $685. 900 This burden Il
company are willing to assume for the chan
of saving a moiety to themselves or their ch
dren of their labor of the last thirty years.
is for the creditors to decide whether they W
accept these terms and conditions in full settl
ment. The alternative is bankruptcy, and tn
means in the opinion of your committee
vidend of not exceeding 10 per cent of the
debtedness.
Before the adjournment of the committee
Mechanic Falls vote was taken on the teri
and conditions of settlement as above mentio
ed and the vote was unanimous as to its g
visibility. EDWIN MoREY,
r. p. HARRINGTON,
J. M. ROBBINS,
ARA CUsHMAN,
JAMES MUNRoE.
At the conclusion of the reading of the
port Mr.. J. L. Fl. Cobb president of the n
chanic Savings Bank of Auburn, moved t
report of the committee be adopted, and t