The Portland daily press., 1894-01-23
ON THE RED SEAS BANK.
Mr.. Libby Thinks the Condensed Milk
Company Can Escape Pharaoh's Hosts if
the Stockholders Rally,

Waterville, Me-, Jan. %, 1894.
To the Editor of the Press:
wish through your columns to an
swer very many inquiries that have been
made by various stockholders in the
city of Portland and vicinity, by letter
aud otherwise, to me about the condition
of the above company and its future
prospects.
When our plants at Newport and VIM
throp Deared completion we found we
lacked about $4,000 in funds to pay for
their complete equipment to begin con-
densing milk. Then, of course, the
capital to operate the factories OF ncees-
sity had to be hired, which was done,
mourning an indebtedness of SAG, 600.
In May the financial crisis which began
It's ravaging work among the industries
OF the country was most keenly felt by
this young and new industry. We were
receiving ten thousand quarts of milk
per day, and our statesmen, Barker &
Harris of Boston, reported it impossible
to sell our product. Our customers were
highly pleased with our goods; calling
1t the best condensed milk in the market
yet they were frightened to increase their
stock. This condition of affairs piled up
our goods in our factories and checked
their sale in the channels of trade. Un-
like other manufactures, condensed milk
will tnlcken ii held long time in hot
weather, and become unsaleable. This
panic which blocked the wheels of trade,
caused wide spread losses to all manu-
featuring operations, more particularly
condensed milk factories. Several of
the largest operations made imense loss
IT ~ DC oce 70
$4,000 Yet, believing in the operation
as Maine industry we did not wholly
shut down, but in August to the first of
September, the stock of milk in grocers'
hands having become exhausted, the
great law of supply and demand came to
our relief and caused the demand for our
product, which has continued ever since,
Our company lacked management and
were unfortunate in not securing first
class efficient general manager. But
learning of a Missouri lawyer by the
name of i. B. Rackliff, who was a native
of the State of Maine, educated, and a
man of means, who wished to come back
to his native State and engage in some
kind of lucrative business, we secured
him AS general manager. Injured as he
was to sharp and extensive business oper-
ations in the wild West he had his
business to learn. The only part well
known to him, as he says. was to shirk
milking the cows on his fathers farm
in Corinna and get the job on to the
rest.
Mr.. Rackliff, who holds the position of
General Manager, after learning all he
can about the businefs, claims if we can
give him sufficient working capital and
leave him untrammeled, he Can become
our Moses and lead us out of the wilder
ness. We are at the present writing just
on the bank of the Red Sea, which diff
cult and turbulent body of water we
propose to cross if the stockholders of
the Aroostook Condensed Milk Co., will
come forward and assist in plan of
reorganization which has been begun by
the formation Of new company whose
name is more appropriate the Maine
Condensed Milk Company. This COM
pany has been organized by placing
younger men at its head and in its d.
rectory.
The officers of the old company being
in perfect harmony will assist the new
company financially and otherwise, to
make the business great success of the
State of Maine. The proposition is for
the stockholders in the old company,
who purchased their stock at about So
per share without the knowledge that
the stock so purchased having a par
value of SO per share, carried liability
with it of So per share. as far as the
debts of the Company were concerned tt
exchange their stock for stock in the
new company paying $3.50 difference.
This 81, so if received on 10000 shares
(there being $4,000 of the shares sold)
would give the new company $780,
which would enable it to ASST : and
pay the liabilities of the old company,
and have working capital left. Myself
being the largest stakeholder, propose
to take the same number of shares in
the new company and pay the difference,
notwithstanding that / am obliged to
step down out of the presidency Of the
company, and am not in the directory.
Yet, as believe in the industry I know
will. good management, and in times not
fraught with panios and disasters this
business will prove very profitable. which
would make our purchase of stock in
the new company good investment.
This relieves the stockholders from
their present liability and gives them
stock in he new company, whose par
value is $3. so per share, which is non
liable and non assessable, and must, we
believe prove good investment.
IT reorganization does not prevail there
is no way excepting to let the company go
into receivers hands. A court Of equity
would assess each share to pay the COM
pany's liabilities. This would cripple
and perhaps terminate this industry,
which very many Maine men have
looked forward to as a very profitable
and appropriate industry to give Maine
farmers a new impetus in their arduous
tolls. I.C.LIBBY.
SaiActinu E2ozns