The times. [volume] (Richmond, Va.) 1890-1903, 1890-09-16

sale for It's account AT par pdNdDic III lHetdi-
ments as follows:
90 DER cent on SEPTEMBER %. 1890.
10 per cent on OCTOBER l5,IS9O.
3O per cent on NOVEMBER 10, 1890.
20 per cent on DECEMBER %, 1890.
100 per cent
Negotiable certificates Will be issued. eX-
changeable upon full payment for the Deben-
tnre BOnds when engraved. The instruments
may be paid up under discount at the rate OF
6 per cent per annum. The failure TO pay
any instalment when due VIII render pre-
yjous payments liable 10 forfeiture.
I'm conformity with the requirement OF The
Company. preference in allotment viii be
given 10 the stockholders pro rata, according
to their holdings as recorded on The Closing
of the transfer books on saturday, the l3th
day of September, 1880.
The right is reserved 10 reject or reduce
any application other than stockholders as
aforesaid.
ment by the Company:
OFFICE OF TIE AMERICAN COTTON
OIL COMPANY.
Is BROADWAY,
NEW YORK, AUGUST l6 1890.
MESsRs. WINsLOW, LANIER a 60. and j.
KENNEDY TOD q co,
GENTLEMEN:
In compliance with your request, we pre-
sent the following
STATEMENT
Showing the Net Profits of the Manufacture
ing and Other business of the Corporal ions
in which this Company is Interested
For the period Ia May 81, 1856 39lOOl q
Year ending MAY 81, 1887 ......... 2,ilS,2JJ IS
Year ending May 81, ISIS. 2150 l52 IS
Fifteen months Guiding August 49,
81 ...'.'''.'..',' opo 40 .
For ten months ending June 30,
IOoool ~
IOtHl f'Flptp VI
Less amount paid during the above periods
for
Interest on borrowed money rs ISL, l9i 50
Expenses of New York Office. 663,321 Ol
dividends paid. ......,............ 4lO.l51 0
Suspense account clOsed........... 37l,10G -
Expenses Of Reorganization
lV<'iZo W.
Total................. .. ........s2, 7S1 1898 p
Net accumulated profts~...s1, 571,6l9 81
FLOATING DRBT OF THE COMPANIES
JUNE 30, 800.
Total indebted
ness on bills
open accounts. s4.61O,572 AZ
Less chsh............s 5SO,37l 20
Cash assets~.........s1 1856 OS ~ 1886, 143 60
" --
Net floating ,673.S2S SO
DISPOSITION Of tASn Ih'lfi lo AM
BORROWED MONEY.
Net accumulated
profits as above si571615 Sc
debt. as above 4,6IO,572 40
--
Total cash to he accounted
s9,lS5, POP 80
Cash and cash as
SctS.................... ,JoO' 10 90
Marketable pro
duets, supplies
and assets on
hand. available
in business .... A,172115 30
Invested in add
tiOnal capital
stock of cOrpO-
ratiOns, fter
deducting insu-
rance reserve. 3,O76,363 "a 50 1885. 2l2 80
The fixed or real property atone cOmpTis
ing mills, refinerics and other manufacturing
plants about one hunded in number. located
In sixteen different States, in cOnserVatiVely
valued for insurance purposes mainly) at
SlO,OO0,OOO.
The above statement OF assets does not in
clude the very valuable good viii, trade
marks, contracts. and kindred assets. repre-
renting large and costly investment.
an these properties are free from mortgages
q Ofher liens.
The active properties have been maintained
in high state of efficiency. with the most
modern and imp owed machinery, for ecOnO-
mical and profitable working.
In explanation of q large decrease of net
profits of the current year, we beg leave 10
say that hostile legislation and adverse lti-
CATION embarrassed the Trust organization,
impaired its credit, increased its expenses
and crippled its resources.
Other grave complications connected with
the administration of the Trust, combined
with the above causes, 10 make necessary a
reorganization of the Trust into corporate
form
As a consequence OF such special conditions
the general business was subjected To changes
of policy as well as management In the very
midst of the most important period Of the
year.
The period from November 6. 1889, covers
the reorganization. with its attendant en-
barraSsmentS.
The conditions then prevailing were spe.
cial and exceptional With new manage
ment fixed working capital, corporate form
of business, and restored credit all such Diff
culties are ObNlated.
Under the new conditions not only is the
interest on the Debenture Bonds hereafter
mentioned assured, but dividends upon the
stock NAV be fairly expected.
AS YOU are aware, this company was form
ed i'm connection with the reorganization OF
the American Cotton-Oil Trust.
Its capital stock is divided rs follows:
Common stock outstanding. ...........2i ,O92 900
Prefeited stock author
lLctl....ss.s ~ pott'tO
Preferred stock re-
served.......... ............ 1,363,1Op
Preferred stock outstanding 10, $50 300
Total outstanding IDS. 800
= The business and operation OF the company
and of the properties in which IL Is interested
require thst permanent working capital be
provided.
II mas been found impiacticable 10 disnose
OF the Preferred stock remaining unissued
for cash. at par, oiupon advantageous terms
The company has. therefore, decided 10
create S5.OOO,OOO Ien-lear Debenture Gold
Bonds bearing Interest at the rate OF per
cent per annum, payable quarterly, $1,000,
600 Of which you are authorized 10 sell al
this tiine
The Total amount Qess cash Ia bank) now
which is subject 10 the fiuctliNuons of the
,.aonax mark Fl and 10 the nnceE.,lnfx nI ~.