Morning journal and courier., 1891-08-06
THE OLD COLONIES TROUBLES.

THE OLD COLONIES TROUBLES. What is Said Regarding the Propesi- ton for q Settlement of the Tangle and tho Resumption of the Busi- nesss
 The Old Colony Distilleries company's business is going on as usual to all outside and nothing external gives any evidence of the critical condition of the company's financial affairs, which. however, will, it is expected, be fixed up at the meeting of creditors soon to be held. As was learned last evening, the proposi tion of MT. Curiel and Mr. Woolner in be- | New York will, it is likely, bs accepted, as if it is not the creditors, it is asserted by persons posted in the case and who claim to be disinterested parties, will come out of the little end of the horn, metaphorical- ly speaking. Of the United Growers company MT. Curiel of New York is presi- dent, and MT. Woolner, one of the large owners, is also of New York. The compa- ny represents trust of wholesale wine and liquor importers and dealers. The United Growers company is creditor of the Old Colony Distillery company to the amount of $150, ,000. This represents money loan ed. This is the actual present indebted ness between the parties. The United Growers company has, however, besides loaning this sum tided the Distillery con- pany over on tight spots during the last half a million of dollars, all of which has been repaid either in money or goods, ex- cept the $150,00 Outside of this claim there is an indebtedness of about $110,- 900. In lieu of the indebtedness to the United Growers company MT. Woolner and MT. Curiel will take the distillery, talk ing a second mortgage upon the prop | erty, while the new company which will be formed under their direction l will issue to the creditors first mortgage | bonds to the amount of $100,000 at per cent. interest, payable semi-annually, the whole to be paid within five years. If at the expiration of that time the first mort gage bonds are not liquidated, then the holders of these bonds may foreclose and take the property away from them. At the start, however, it is promised that the 1000 of indebtedness over the $10O,0OO, for which first mortgage bonds are issued, will be paid direct to the creditors. The $110,0 indebtedness represents all the
 
 Growers company, the Old Colony com 1 pany has got either in New Haven or else where.
 It is understood that majority of the | creditors in this city have accepted the | terms, and it only remains for the creditors outside of New Haven to acquiesce in the | arrangements before it is put into actual force. The new company which will be organized will continue to run the concern and will double the capacity at once. In | assuming the liabilities of the company un- | der this arrangement the liabilities of the | concern to the government is not figured l in, because it cannot be claimed as a lia- | bility. The company has on hand, ac l cording to some versions of the case, now about 00,009 gallons of spirits, and this will revert to the new company, it being allowed to dispense of the present stock as it sees fit but being obliged, how ever, to pay the ninety cents a gallon tax upon it. If it continues to produce right along and double the capacity as is in | tended, the creditors will in no way be de- frauded of the equity in the stock now on hand, for with the extra production the company will continually have on hand l as much if not more than at present, so it is argued if the first mortgage bonds are foreclosed, as large, if not a larger stock will be on hand.
 WHAT IS SAID.
 l Those posted in the affairs of the dis tillery company think the proposition for settlement and a resumption of business very equitable one, as if the plan works all right, as they think it will, the credit ors will get their principal back and the interest money beside, and all the time hold good security for their claim; while the United Growers company will see a chance of paying all claims in full and eventually getting their money back, at the same time keeping in operation a bus mess employing in busy times from sixty to seventy hands, which pays out large sums annually to New Haven people in payment of carriage, buys large quantities of coal, helps pay New Haven taxes and swells the export and import receipts of New Haven port. If the new deal is ef- fected the present secretary, MT. Nathan, concern, which will have to be reincorporated. If the proposition mentioned is not accepted, the
 advocates of the measure say, the cred itors will then be left to look to the real estate, buildings and machinery of the company for assets and to the stock of
 whisky on hand, on which the govern ment, of course, has the first claim for payment of taxes, while such of the New Haven banks which hold warehouse receipts for the loans made, are preferred creditors also. The New Haven County bank for instance is amply secured by warehouse receipts. It is set forth that these assets, real estate, machinery, whisky, etc., will not at forced sale pan out anything very handsome for the cred itors, while if the property is kept in use as distillery it will be much better as- set with the prospect ahead of payment in full of all claims. This view is, of course, based on the ground that the works will be managed so as to pay and pay well. | THE CAUSES OF THE FAILURE.
 The causes of the failure are thus sum- med up by a representative of the firm: The Distiileries company had 8 hard fight. We had, they say, 8 hard and expensive contest with the yeast business, in which we spent a great deal of money. Then we had big expense and outlay in getting new machinery, much of it of very valu- able and costly description. This is now in good order and the works are in prime condition. Then we had to contend with the whisky trust, which was fighting us Then, only recently, we put up at the ex- pense of $20,00 big building. This was for feeding cattle, branch of the busi- ness we had got into working order and paying condition when the board of health swooped down upon us and compelled us to discontinue it. The buildings will be used, if the business goes on, for storage purposes.
 NO BoNDsMEN WILL SUFFER.
 The remark has been made that the bondsmen are likely to suffer. That is all nonsense. These bondsmen gave bonds for the payment of the government tax The whisky in bond amply secures the payment of that tax and thus how can the bondsmen suffer with the tax payment amply secured? Not once in thousand times are bondsmen called upon to pay. The. banks, too, will all get their money back, both those secured by warehouse re- ceipts and those not, as after the govern ment tax of ninety cents gallon is taken | the equity on the value of the whisky is still ample to meet the banks claims. Another thing which is not usually known to the public is that the plants of the dis tilleries have to be by United States law free from debt. The Old Colony plant is free from debt. It has to be so by law. Four United States officials are on duty every day watching for Uncle Sam's in-