The morning call., 1893-12-05
WILL NOT EXTEND.
The Creditors Want Good
Security.
The Davie Company Unable to
Make Satisfactory Ar
rangement.

The meeting of the creditors of the
Davia Ferry and Transportation Company
at the rooms of the Board of Trade yes er-
day afternoon did not result In any under.
standing being reached.
Neither the Davie company nor the
creditors seemed to have nny proposition
which the other could accept, and when
Chairman Will m Nj. Cubery announced
felt that every creditor would from then
on have to look out for himself and get his
money the best way possible.
Secretary Sanford Bennett of the Dun
ham. Carrigan & Hayden Company broke
the Zee by endeavoripg TO ascertain from
Mr.. Pomeroy of the Davie Company
whether the latter had any proposition o
cffer. Mr.. POmeroy threw the burden of
proposltIo n-inaSIng on to the creditors.
A n attempt had been made. he said, t. OBJ
tain Endorsements upon the company's
paper, but those who had been appr oac he'd
suggested thai the people who sh Ould in
dorse any paper of that kind ought to be
the very ones the company had done busi-
ness with.
The creditors did not see it 10 that light
at all. Why they, having already accom-
modated the company, should now have
TO secure the company's Indebtedness to
Mr.. Bennett or to Arthur w. Cornwall of
the Black Diamond Coal Company. The
latter said that the Davie Com pany ought
NOT to expect Endorsements from people
whom it already owed and could not pay.
do you thiak we ought to ask people
with whom we have not done any business
to indorse our paper?" Mr.. Pomeroy
asked.
Il think you should" Mr.. Cornwall re-
piled; ''you certainly would not expect us
to go on your paper. would you p
1t was suggested that Mr.. Davie and
the other directors of the company in-
dorse Its notes, and there was a
general sentiment expressed in favor Of
giving long extension OF time If they
would Or so, but Mr.. Davie demurred by
saying. Il am not going to sign he notes
and assume the responsibility OF the whole
company"
This brought up the question of how
the company stood. E. &. Buswell read a
report made by the committee of investi-
cation, which showed the actual liabilities
of the company to be about Sl2. 2.0O0, as fol-
lows: S4S00 for material and labor on the
steamer Alvira. $500 on the Rosalie. $4,000
for the Davie Company and over $4,000 fer
boiler were added it would in
crease the liabilities over $1,000
| more. To Offset this there were about
$1,000 worth Of assets. Altogether $1,000
| had been paid in for stock. Mr.. Davie
bad taken $50 shares of stock, Messrs.
Bassett and Morgan 100 shares each and
Mr.. POmeroy 10 shares. Originally the
company started ON a basis of 25O.O0O
shares of So each. hut the capital stock
was eventually doubled.
As IL appeared from this showing that
the directors had contracted debts in ex-
cess of the money received by the sale If
stock, the point was raised that that mad G
the directors personally liable for all the
Indebtedness.
1t resolved itself simply down to this :
The Davie company owed lot of money.
could not pay and waS unable to get salts
factory security. The creditors were pa s.
| sively avsrse to having receiver appointed,
and none seemed disposed TO begin iusol-
sency proceedings against the debtor con-
cern. The idea OF having the creditors
| take possession of the ferry business and
allow the Davie Company to do The operat-
| Ing simply offered a prospect of going
deeper into debt. Consequently the meet
Ing adjourned sine die without action.
Some Of the creditors may try to obtain
liens on the steamers Frank Silva and
Alvira by libeliing the vessels In the United
States courts. but no other programme has
been outlined. The Davie Company has
made valiant fight against the Southern
Pacific monopoly. hut was unable to con-
tinue the struggle against such heavy
| odds.