The Providence news. (Providence [R.I.]) 1891-1906, 1897-05-25
Report TO the Stock h olders.

Thomas NJ Stebon offered the report OF
the stockholders committee as follows:
10 the Stockholders of the Rowland
Mills Corporation, and To Those OF
the Rotch Spinning Corporation:
In regard TO the Howland mills the
valuations reported by the experts May
18th, showed: Assets 81, 4S5, 463 56; debts,
81 100. on "a. The contingent liabilities
not practically requiring attention. The
balance, $3.50, 90. 81 belonging TO share
holders has n value per share OF y.S 01
In case of "A sale under legal proceedings,
this value might disappear but II Is IA real
value, and ought TO e.saved TO its owners
Your committee Is or opinion that about
5000 new shares should be issued and
about $500, 600 of new money raised. With
this sum paid into the corporate treasury,
and thence used in payment 10 creditors,
YOU would have property OF sl, 100, 4o3
with "A debt of 300, 600 upon IL. The COM
mttee recommends that the outside lands
and tenements be sold, when sales can be
effected without sacrifice. To acquire
$500 600 new capital the old stock must be
reduced as much. To induce n new sub
scription of $500 600 Is 10 not best TO ro-
duce the old capital more than that sum-
A 30 per cent reduction OF old stock
will leave 100 shares owning 81, 49, io3;
1900 new shares will pay in s1D, 600; 5000
shares will own 81 O15, iO3 OF property; de-
duct debt, 81, POI, OO0-sl. 075, 463. One
share will be- worth Sl3, i43, and the sub
scribors will get at $40. 30 per spindle a
fine mill of II, 5a2 spindles.
such shares based uD on the experts
valuation should be desirable to stock
holders, creditors and to strangers; and
the committee advises such reduction of
80 per cent.
The experts reports of May T. show
n o. oh NJ
stockholdcr balance, Sil0 5i7; value of
each share, $3.50
In our opinion. the sum of $525, 600
ought to be raised to reinstate this cor
poration in credit and strength. This
sum devoted To payments on the debt
will reduce il to s32S. 29i u liability which
can be more than met by the quick as
sets accounts receivable, merchandise,
etc, etc, which amount to $3.50, ilo and
leave the plant free from debt with
SD2, Ia ON hand.
We advise that you issue $3.50 shares OF
new stock and that the old stock be re-
duced to $3.50 shares making thus total
capital of $500 shares.
One Management Advised.
The first right to take new shares be-
longs To you. Your committee advises
further that IL practicable, the Rowland
mills and the Rotch mills be kept undor
other We have conferred with Mr.. An
drew G.. Pierce Jr., and while we have no
authority TO conclude contracts tho con
terences with him have reached such q
stage that we have decided To advise you
10 engngo him as treasurer OF your cor
poration. Your present directors having
rendered their designations, we recon-
mend that gentlemen be chosen in your
directories To give proper representation
Ia new subscri bers.
Certain changes in the bylaws of your
corporations ought to be made, by meet
ing called for tie purpose. Your commit
tee wishes to impress upon the stockhold-
ors In these corporations the Importance
of prompt action. The new funds ought
to be raised, creditors satisfied the prop-
critics taker out of the hands OF receivers
and placed under normal management as
early as possible
Resolutions Adopted
The following resolution, prepared by
Mr. Stetson, was then presented and
adopted by both the Rowland and Rotch
mill stockholders.
Kesotved, That the further report OF the
committee made this day Is accepted and
approved. Tho directors are requested SO
far as IL devolves upon them TO carry Its
recommendations into effect, and the,com-
nittee is also requested To act further in
otfrctinn the recommendations of their re-