New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-11-06
flnanual.
THE AMERICAN COTTON OIL co..,
EXECUTIVE OFFICES. No. 90 BROADWAY,
New.York, Nov. 8, 1901


The American Cotton OIL Companyi
So many change, taken place during the past TWO
years in the proprleoIshp represented by your COMPANY
that brief review OF the events OF that period WIN give
the present better understanding Of the status
Of their Company its properties Its business us financial
condition It's resources. and It's prospects
In November 1889. It decided to incorporate the
business under the protection Of accepted law.
The plan adopted for this purpose received with but
trng exceptions the hearty support and cooperation OF
oil parties Interested and The American Cotton OIL Com
pany duly created and organized
BY reason however special conditions. heretofore ex'
planned you in detail the practical execution OF the plan
delayed during the ensuing eight months
the for the active operation OF the crushing
Mills approached large OF cash were required Tor
purchase OF coonseed and supplies and the operation
OF the Companies. 1t then July 1880 ana the money
market already under the influence OF Impending
financial disaster It had been designed TO provide hAeo
working capital sale OF the Preferred Stock Dut
under the conditions then prevailing the advantageous SAFE
OF the Preferred Stock found 10 be mpractcaDe.
s3 100000 OF additional cash working capital were neede
for the operations OF the opening while the hoatng
debt OF - 100000 was rapidly maturing 1t evident
energetic and effective action must be
promptly taken.
At this stage. under date of July 49, 1890. mum.
Der OF stockholders representing majority OF the Capi
Stock, addr sse1 the following conn unca:ion
ITO MESSRS. wINSLOw, LANIER CO..
BANKERS, NETWORK CITY.
"Wc would be pleased TO have you aid IN perfecung
the organization of The American Cotton OIL Company
OF NewJersey and request you to assist in the for
nation OF a Board for this Company OF men OF high
character, including one member Of your firm"
This suppl .m@ted Aug IL, 1880. by a COM
munication the firm, signed by all the members
Of the Reorganization Committee which had been appointed
BY the itifcate holders and reading as follows
Recognizing your special abilities for the task,
and the large stock interest you represent, we re-
spectfuly suggest that you address yourselves 10
MIA tho al and aIaf. NJ
Cotton Oil Company permanent basis"
III response to this call these Bankers az once In
augurat with the assistance OF experts, thorough In
vestigation to ascertain financial prospects OF the
Companies the physical condition OF the various properties
requirements for their protection and develop
ment the legal status Of this Company and OF the organ1a
tion the condition and prospects OF hostile legislation and
necessary and to establish the enterprise
upon a stable foundation.
At the conclaso their Investigation, and abou. the
September 1890 the Bankers ced their opinion
the business Of meIit and Dermanency, and
hat under proper business management It every
promise fair returns upon the capital Invested. The
recommendations and plans when submitted with
the results OF the investigations to the representatives,
the Stockholders and the Reorganization Committee
eved prompt unanimous approval and at The reques: Of
interests the Bankers assumed the charge and duty
their practical execution The designations OF the
orlty OF the Board Of Directors accordingly rendered
the Bankers. and Mr.. Adams Of that firm ESPECIALLY
charged with he undertaking Chairman Of the Finance
Committee OF the Board Of Directors.
The first presented for permanent relief
the and sale Of the Companys Debenture Bonds
the amount OF 100000. New Directors selected
The cooperation OF foreign bankers secured and pros
pectu Of the Debenture Bonds issued sept. o. 1890.
In conformity with the conditions made by old Board
Of Dctors these Debenture Bonds first offered
the stockholders In order to protect the Company
the d!sas. effects OF failure the part
holders OF the public subscribe ture
Bonds and cash continuance
Of the business international guarantee secured by
the Bankers for the entire II 100000 OF Debenture Bonds
offered stated to the stockholders circular Sept
8, 1890.
The period for the issue inauspicous as is
well known, but the necessities Of the enterprise I'm
mediate and pressing AS the stockholders accepted and
paid for only about Of their pro amount
the wisdom Of the guarantee recognized and
pense incident thereto approved.
All the Debentre Bonds promptly paid for on or
before the maturity OF the instalments.
The reorganization OF the personnel Of the then
received the attention CT the Finance Committee while the
interests mpered by legislation and litigation
fully watched Radical changes and reduction expenses
in many departments effected. Direct
DDS were introduced, Unnecessary Offices abolished small
dompanies consolidated, concentration Of management
secured, and provision protection and pro-
motion Of your business interests In all directions
The Directors have been In regular monthly session.
The members OF the Finance Committee given con-
tnuous daily attention, home and abroad 1t this office
and at the distant properties to the details business
and It's reorganization.