Iron County register., 1890-07-03
ST. LOUIS ORE & STEEL co.
A Receiver Appointed.

The ST. Louis Ore and Steel Company has
gone into the hands of receiver. While
this announcement will be great surprise
to the general public, it will be no news to
the bondholders of the company, who have
for some time been cognizant of the facts
leading up to this action, and which are un-
usual to degree. Although a receiver has
been appointed to take charge of its affairs,
the company is in no sense insolvent and
does not owe dollar in the world aside from
its bonds. Yesterdays action was made
necessary by the failure of the iron mines of
Pilot Knob, which were long believed to
be iueXhaustibe. The property of the COM
pany consists of the Big Muddy coal fields,
near MurphysbOrOugb, H.; the Vulcan
Steel Works in Carondelet and the Pilot
Knob iron mines. These three properties are
bonded as follows: The coal fields and iron
mines for 81 900, GOO and the Vulcan Works
for II 100000. The steel works have not been
operated for two years last past. owing to
the failure of the iron mines, so that this
made u charge for interest against the other
two properties of about 0,000 per year,
and the iron mines have been so little pro-
ductive during these years that almost the
entire interest charge of about $500, 900 per
year was thrown on the coal property. This
was unfair to the holders of the coal bonds,
but the company has continued operations
during this time in the hope that another
paying body of ore, for which a constant
search has been made, would be found up
on their holdings, and thus business could
oi,,h ha tuh hlr
two years, however, of unsuccessful effort
it was deemed best to take some other ac-
ton to relieve the coal bonds of their heavy
and unjust interest charge. The bondholders
were notified of the situation of affairs, of
which most of them had already been long
cogniZant, and some of the heaviest holders
offered to cut off their coupons and send
them in receipted. A couple of brokers in
this city, who hold one two bonds each, were
asked if they would follow SUIT, but they
declared that they must have their money.
July is interest day, and to prevent a fore
closure by few of the small holders at the
expense of the big ones it was determined
to ask for q receiver.
Accordingly, at . O'Clock yesterday after
noon the Farmers Loan and Trust Company
of New York, trustees for the bonds, filed a
bill at Springfield, H., and, at the request of
over two thirds of the bondhoders, Mr.. K.
A. Hitchcock, the president Of the company
and one of the largest bondholders, was ap
pointed receiver.
1t is now probable that the holders Of the
different issues of bonds will get together
and agree to take the various properties rep
fD1 hrf hair
agree on a new consolidation, which will
continue the business Of the company prac- |
tically as before. None of the works have |
been shut down, and the business Of the |
is being transacted as usual. The |
Pilot Knob mines still afford ore enough to |
keep the Jupiter mill in profitable opera
ton, and the search for a new vein of ore is !
being pushed as energetcaly as ever, and |
should a new supply be found, it Is entirely |
probable the business will be reOpened and |
conducted as before.
Secretary Garrison, when seen yesterday |
afternoon, was feeling very we'll satisfied |
with the shape affairs had taken under the |
circums :ances and thought the company is |
entitled tn no small credit for the able man
ner in which its affairs had been handled !
during the crisis and all Its liabilities met.
$50 far as | can ascertain, the company does
not owe Il dollar in the world this evening. !
Everything has been paid up to July /, even |
labor, supplies, etc. 1t can hard
iy be said, therefore, that the company is
inso!vent. This action was taken to protect
the large bond holders and put the business
of the company on a new and more satisfae
by the ction."-ReDabitc, JurG %.