The Providence news. (Providence [R.I.]) 1891-1906, 1897-05-11
1t Will Require $553,3o2 to
Redeem the Plant.
Contribution OF 500 4 Share Would
Have TO Be Made.
Partial Report on Rowland Mills and
Rotch Spinning Company.

New Bedford, Mass. May IL. The
stockholders of the three Rowland corpo.
rations met this morning under adjourn
ment and listened TO a report of the COM
mittee of their members as to the proper
course to pursGe in rehablitating the
concerns. The committee, basing It's con-
clusions on the figures of the experts,
concludes that in the ease OF the Ney
Bedford Manufacturing Company the a.
sets and liabilities can be briefly stated
follows; Debts, ointCing contingent liza.
bility, $780, 5S5; quick assets applicable to
reduction of debt, sob 2222a, leaving bal
ance oi indebtedness on the plant Of S55S-
362. This Is equivalent 10 $li. 95 per
spindle. The above situation is put In
the most favorable light possible to the
stockholders. In this computation the
contingent liability of so, 200 Is not IN
cludei in the Indebtedness, since 1t is
supposed that liability is only nominal.
and no allowance has been made for ex-
penses of liquidation and care of property
during the period prior To resumption.
Hence il appears IL will require S558 S62,
or more, TO redeem the plant from the
creditors.
Is 1t Worth While?
Can this be.doneY Is it gworth while to
make the effort? A contribution or assess.
ment of 500 per share, II met by all the
stockholders, would restore to them tho
mill and machinery enc umb bered by
debt of from $50, 600 TO $780, 000 Many of
the stockholders are unable to meet such
n demand, and there arc others who, while
able To respond, would elect TO abandon
all possible interest in the property rather
than make any further payment on ac-
count of it, Whether the value of tho
property to be acqu rod by the payment of
the Indebtedness Is equal TO the amount
required to satisfy the claims OF the credi-
tors would at the present time be regarded
as more than doubtful.
The conclusion reached by the COM
mittce is that in view OF tho excess Of
Indebtedness over the assets In the case Of
the New Bedford Manufacturing Com
pany, the creditors Of tho company be
notified of this condition OF It's affairs, in
order that their Judgment may be OBJ
tained upon the method il liquidation or
the arrangement of terms of settlement.
Since the property practically belongs to
the creditors it is doomed wise that action
De take To assume It's manaqement and
liquidation il they shall so desire by SD
doing creditors, operatives and the COM
munity will be benefited.
No Conclusion as to Other Mills.
The committee has not as yet reached a
conclusion with reference to the Rowland
mills and the Rotoh Spinning Company
These corporations have an apparent
surplus Of assets over debts, amounting
i'm the case Of the Rowland mills To 2S per
cent and, in tho case of tho Rotch Spin
ming Company to 5i per cent. The pro-
blem is TO save rs much as possible of this
surplus for the stockholders. Every
scheme presented now requires money
which must DO furnished by the stock
holders and strangers The inability of
some of the stockholders TO obtain tho
money necessary to save their part. of - 10
surplus, makes the problem perplexsng
one. In order 90 secure new capital from
strangers there must be the inducements
of low valuations of the properties and tho
lower valuations the greater will be tho
demands made upon tho stockholder OF
the IS per cent OF surplus in the How
land mills 70 per cont, * in land and
houses.
In Tangled Ccuditi.n.
The condition of the Rotch Spinning
Company is tangled. Not enough progress
has been made TO warrant oven tho coE-
jCCture of results.
The COMMITTEES suggest that the several
stockholders' meetings be further ad.
journed, pending the presentation OF
definite plans of reorganizatiLl
AT the conclusion OF the report. Thomas
NJ. Stetson, counsel Of the corporations,
submitted motion 70 the stockholders
of the New Bedford Manufacturing Com
pany tO tho effect that committee he
chosen TO consist of President Rotcb
George 4. l<ingman and Oliver Il. Bright
man, 90 confer with the creditors C the
New Bedford manufacturing Company
and report recommendations to the st.,ck.
holders. The committee was empowered
to add TO its members If IL was deemed
best Tho motion was adopted unani-
mously and the three meetings were ad-
journed for one week az the sai.ie place
and hour.