Staunton vindicator. [volume] (Staunton, Va.) 1860-1896, 1890-08-08
TO Start Up AGAIN.

lU DlQll Up ny Qll.
TIE Shoe FACTORY STOCKHOLDERS
OFFER PREFERRED STOCK.
MUCH INTEREST SHOWN BY THE STOCK
! HOLDERs-PREFERRE STOCK TO BE
| ISsUED-THE FACTORY CANNOT BE
| MOVED EXCEPT THE OLD STOCKHOLDERS
! VOTE IT SHALL BE-THE GENERAL
| DEBATE AT THE MEETING.
&C., &C., sc.
| A great deal of interest was shown by
The stockholders Of the Staunton Shoe Fac
tory Company in their adjourned meeting
held at the factory Monday night. Of the
900 shares in the company, 657 were repre-
sented, and among the shareholders who
showed their interest by attending in person
were Messrs. Ferdinand and Adolph Loeb,
Henry Hutchinson, James Bumgardner, J.
Howard Wayt, M. Erskine Miller, W. HI.
H. Lynn, J. r. Liggett, B. F. Hughes, J.
E. Graham, w. H. Weller, and many other
prominent men in the community. Mr.. M.
! E. Miller presided.
| THE FINANCIAL CONDITION OF THE
COMPANY.
| Mr.. e. G.. Child, who acted as Secretary
of the meeting and who is also Secretary of
the Company, stated, in reply to questions,
| that since the company had been in opera
ton it had lost about $4,000. OF about 80
cents in the dollar of its Ss24,0 900 of CAPT
tai. He showed very clearly drawn bal
rnce sheet i'll which the assets and liabili-
of the company were itemized.
BUSINESS PROPOSITION TO PUT THE
COMPANY ON IT'S FEET.
MI. A. G. Braxton a member of the
Board Of Directors read the following plan
which majority of the Board recommend
cd to the stockholders for adoption:
| At "a called meeting of the Directors of the
| StauntOn Shoe Factory, held at the cOmpany'S
Office July twenty-six, eighteen hundred and
| ninety, it was resolved that the following
| plan of reorganization be recommended to
| the stockholders at the meeting to be held on
the first Monday in August, eighteen hundred
First. That twenty-five thousand dollars
additional stock be issued and sold at par, on
such terms as the Directors may determine,
provided that no payment be extended longer
| than ten months from date of subscription.
| Second. That such new issue be made pre-
ferred stock in this, that it shall receive
dividends to the extent of six per cent. before
the common stock receive any; that thereafter
all dividends be divided in equal percentage
ON all the Stock and that in the final distri-
button of the conpany's assets, said preferred
stock shall have precedence over the common
stock. and next after the company's debts.
! THIRD That company reserve right to pay
| off and retire said stock after five years, and
that present stockholders have preference in
! subscribing thereto.
| Fourth The Directors recommend the sale
| of the real estate now owned by the company,
and the purchase of a cheaper site, SO that the
additional means arising from such change
may be used as working capital.
MI. Braxton went on to say that the
troubles of the company came chiefly from
the lack of sufficient capital at the start.
report recommends, shut the old stockhol-
ders out altogether
| Mr.. Braxton-NO!
Mr.. J. G. Scheffer-Don't that $25, 900
come in ahead Of us?
MI. Braxton-It comes in exactly as a
loan. The only way that the common
stockholders could be injured would be
first by the preferred stockholders increas-
ing the salaries of the officers so as to
absorb all the income, and second, by the
same men, being in a majority, selling out
the company's plant. Both Of these con-
tingencies have been provided against in
the plan we recommend which puts these
matters in the control of the common
stockholders alone. Bysthis plan we get
more capital to operate with and without
increasing the responsibility of the present
stockholders.
MI. Teabo-Y GU don't tell us where the
IS, 900 lost, has gone. Could you tell where
the additional $4,000 had gone if that
goes?
Mr.. Braxton-If you will look at the
company S books you will find exactly how
every dollar of the $4,000 has gone The
books show it in full.
Mr.. B. F. Hughes-You guarantee the
preferred stockholders per cent.
NO GUARANTEE GIVEN THE PREFERRED
i STOCKHOLDERS.
MI. Braxton-Our plan guarantees the
preferred stockholders nothing. If they
make the factory make enough money to do
it, then they get per cent. on the money
paid in, and all over the amount required
for that is divided between them and the
common stockholders. In other words the
first 81 500 of profit the factory makes, goes
to the preferred stockholders to pay their
per cent. and all over that is divided
equally between the old and new stockhold-
ers. The preferred stockholders are not
guaranteed to get one cent of interest on
their 1925, 900 unless they so manage the
factory as to make it clear a profit. We
have good reasons to believe that this pre-
ferred stock can be placed if the company
determines to issue it.
Mr.. Scheffer-I object to the clause in
the plan which recommends selling this
building and moving. The rent of the Of
fees of the Staunton Development Com
pany now located in it pays $4O0, which is
per cent. on what it cost. If the vacant
rooms in the top story were rented we could
make it 5000, which would be per cent. or
, the investment. No company would want
to move out of building which was paying
per cent. on it's cost and the company viz
tually getting it's rent free. I think the best
way is to ask the Development Company tC
come in and help us on the same basis thai
we are, and have no preferred stock. W.
ought to be able to get $4,000. Mr.. Weller
has said that amount would do.
MINORITY REPORT FAvORING THE SAIL
i OF THE PLANT.