The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1894-12-19

ifies-Three Plans for Reorganiz-
ing the Trust.
- s-F-s
Peoria, Ill. Dec. fS.-The circular
adopted by the directors of the Distfll-
| ing and Cattle Feeding company at
the meeting held in this city last week
was sent out to the stockholders of
| the company tonight and it will reach
none of them before tomorrow. 1t is
a lengthy document, containing a. state
ment of the condition of the company
and declaring reorganization neces-
sary, three plans being submitted for
the approval of the stockholders.
| 1t is addressed to the stockholders
and states at the outset that in view
| Of the radical changes that have taken
place since the annual meeting the
board considers it incumbent to make
| a clear and concise statement of the
affairs of the company and the condi-
| lions that confront them at present.
The board made every possible pre-
paration to take advantage of the in
creased tax lately enacted into a law.
A large amount of spirits and alco-
hol in bond had been accumulated. The
circular then reviews the efforts of
| President Greenlhut and other officials
| to effect a loan and the difficulties they
! encountered. The failure to tax pay
the goods at this critical period was
| the severest blow ever experienced by
| the company. Great as was the finan-
cial loss, the loss of prestige was much
greater. Owing to the failure to tax
pay but a. portion of the goods, the
trade became FESTIVE and the COM
pany was forced to abandon the rebate
TIL A,e-c-
| in the past. This step forced the COM
pany to face new and hazardous con-
ditions, which will require more than
ordinary sagacity and wisdom to meet.
| The cash assets are largely tied up in
| spirits, but there is enough cash to
| pay the rebates. The rebate money
| has in the past been used as a work
| ing capital, and after the rebates are
| paid additional working capital will be
required.
Additional Capital Needed.
In addition to- the capital required by
this company heretofore for the con-
| duct of it's business, it will be necas-
sary to provide additional capital for
the distribution of its product in the
eastern territory, as the American Dis
tributing company, through which we
distributed our product in that terri
tory, has violated its agreement with
this company and has made alliances
for purchase of its supplies through
other channels, which, would practically
bar this company from selling goods in
the eastern territory (where we have
heretofore marketed nearly oneIhalf OF
our product), unless this company is
placed in a position to open its OWL
distributing houses in that territory
Your directors consider it imperative
that provision for obtaining this addi-
tional capital be made with as little
delay as possible, as 1T would not be
prudent or safe for the interests oi
this company to let our competitors
control the market The only available
means at our disposal are the 81, $780,
600 Of bonds now held in escrow by the
Central Trust company Of New York
as a guarantee of the rebates, and
s4,500,000 of bonds which, however, will
require the action Of the stockholders
before they cam be issued.
[ We have endeavored to effect a tins
! loan, using bonds as collateral, but re-
J gret to state that all our efforts in tina,
direction have been futile A suf1i
cient number of bonds cannot be sole
at a reasonable price to tide the com
pany over. We herewith present e
statement of the conpany's assets an6
/ liabilities on December I, 1891, as fol
! lows:
Assets and Liabilities.
| Assets-Stock Of spirits, alcohol and
WHISTLES, 1929, 1921; stock of grain
cooperage and other materials, $780,
361.12; good book accounts, S376, 270 10
value of fire insurance, $4,000; cash in
the treasurer's hand, s409 ,202.43; cash
in plants. $685., 1926; making total
of 81, 321, 29S94.
Tia hj1itjao-PiIIc 5n- On
rebates due to the trade, S1,011, SIT 81
expense items and other debts to Jan.
| l, 1895, $4,000; surplus cash, and cash
assets, $1,O97, 1853; total. $2,231, 29S.94
This statement does not include tine
distillery plants or permanent proper
ties encountered by a deed of trust,
securing the S1,000,00O bonds already
sold and those deposited with the Cen
trail Trust company of New York for
guaranteeing the rebates.
In the seven years the Distilling and
Cattle Feeding trust and Distilling and
| Cattle Feeding company, it's success
| sors, have been in existence, $50, 522, 624
proof gallons have been marketed and
the amount of dividends paid. $6,11S,-
86S.20.
The directors predict changes in the
| future, say that spirits and alcohol
will be in the open market as a basis
and 1T will be necessary to practice
the greatest economy if the company
holds its present rank. Already the
| directors have practiced economy by
/ reducing salaries and the number OF
employees.
The quo warranto proceedings are
next spoken of. If the judgment OF
custer of the lower court is sustained,
the company cannot proceed under its
charter but will be compelled to iioSn-
date and reorganize under another
charter The outcome of the case it is
impossible to predict.
| The directors emphasize the fact that
the money is not needed to pay deDts
but for legitimate addition to the bust
| ness of the company. First we will
need at least 100000 additional to op-
crate tine plant. Then, second, it will
require at least $1,000,00O additional
capital to distribute our products in
the eastern territory. Third, the amount
properties is difficult to estimate
but the money for that purpose must be
| provided, 1T being of course understood
| that any plan of reorganization implies
| that the stockholders elect such new di-
| rectors as in their judgment VIII best
serve their interests
| Three plans for reorganizing the inter
| ests now in the trust are reprs5ein. ed
The first provides for the formation of a
new company capitalized at $10,5G0 090
| So, 500, 600 preferred and $1,000 900 common
| the old stock shares to be taken UP with
| the new stock.
| Plan three. reduces the present capital
stock to 10,000, 900, each stakeholder to be
| asked to surrender his stock and ACCEPT
! one Sl1are Of D9f-7 ,ir -47cl- f- ------
five shares he now holds, that So. o1o, OCT
new common stock be issued and that
| two shares OF paid up stocA b. Issue.
| to each subscribed for 500 paid up.
Such stockholders as do not approve OF
any of the plans and should wish the di
rectors to proceed with the faciEtae;