The Providence news. (Providence [R.I.]) 1891-1906, 1893-01-10
AMERICAN WOOD PAPER co.
Stockholders Meet and Consider n Propo-.
sition for Reorganization.

| stockholders Meet and Consider n PrOpO
| sition for Reorganization.
The meeting OF the stockholders or the
| American Wood Paper Company was held
| to-day at noon. A statement Of the com
| pany's affairs was made and showed
| there are in quick assets $Sl ,25s77. The
liabilities amount to Sl34, 227. 80, leaving a
net deficit Of S53, 900.
After some discussion as to the reasons
for this state OF affairs the President Mr..
Charles II. Mason stated that the assess
ment had been made on Dec. z, and that
the causes which led TO il were not for
seen nor could they have been forseen bv
the directors before Dec. 10. They now
could be explained.
In the first place the order for ma
chinery for the pulp mill had been given
and the contractors had agreed to finish
the mill by April. This was delayed un-
til the middle of May, so that consider
able loss was suffered from lack of ability
to fill all orders for pulp. The paper
mill contractors had promised the paper
mill complete by June 1. 1t WAS Novem-
ber before it was finished.
This caused over five months delay.
The first estimated cost OF the improve
ments was $4,000. IL was found later
that a new steam plant would be needed,
so that the cost of the improvements to
date has been $4,000
Even however in the face of these un-
anticipated misfortunes the directors
thought they could continue the Dusi-
ness. This view was warranted by the
good output for October and November.
During tbnse months the profits amount
ed 20 $1,000 But December opened with
almost an entire cessation of orders.
This dullness has continued until now
and is due to the season of the wear, The
lack OF orders and the pressing bills
which had accumulated rendered the as
signment necessary.
There was a further misfortune TO the
company caused by the embeZzlement of
one of the trusted agents of the company.
Through him $4,000 was lost.
After some discussion as to the cost of
the assignment, which was estimated by
Mr.. Jones of philadelphia at between
Sl0,000 and $50, 900. the stockholders voted
TO approve the assignment
Then followed the presentation OF n
plau of reorganization which had been
prepared by the conferrng committees of
the creditors and stock holders. 1t an
pears that AZ n result of the recent sub
scription TO preferred stock the mills are
now In first-class condition.
The product OF the paper mill is now
10000 pounds per day ~ compared with
1S,000,one year ago. rhe product OF the
mill lis 100000 as compared with Loo
600 year ago. The working force OF
the mill has been reduced from 205
men TO 1913.
The following plan OF reorganization
was presented, viz to sell out the busi-
ness of the company as IL now stands TO
form new company in which the pres
ent common stockholders shall not be
considered, but the present preferred
stockholders shall have SlO0, COO of com
mon stock-the amount OF sto. * equal TO
the amount Of money recently subscribed
by them,
The creditors II is understf oil will take
Sl3O,OOO OF common stock which repre-
sents the amount OF their claims There
are TO be sold S200,c00 OF preferred stock
AT 80 cents on the dollar. Iabu,ated this
plan IS ms follows:
Capital lstock.....................,., s,oo 600
ir'ieio" H9u,OUO
This TO be q per. cent cumulative and
10 have frst lien on the property i'm
case OF liquidation. OF this S2OO, 600 To be
sold at 80 cents on q dollar; $4,000 TO be
kept In the treasury; common stock.
S25O,OOO sl30OOO TO creditors; 500. 600 TO
present preferred stockholders
IL was moved TO leave the matter To
the directors aud &. K. Mason. r. A
Chase, w. Is. NJ Miller and NJ. j. Perry
we're appointed "a committee 10 confer
further with the creditors on Friday next