Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1897-12-29

tor OF the Record, was president an6
which closed their doors last Thursday
presented the plan for the considera
tion Of depositors and creditors, Mon.
day night.
The chief measures suggested is the
! issuance Of Record sock to secure tn.
| creditors. The plan is prefaced by Z
statement that 1T must be clear to al
concerned that in no case can creditors
| of the bank, Of the Trust Co., of the
Pulp and Paper - bf Mr. Singer.
ly himselcun Ie than the tota
w. rs and rights OF
IRONS if addition TO those
Xngerly individually. No mat.
ter how protracted or expensive posi-
| BILE assignments and receiverships may
| be made. the creditors cannot receive
| more than the total Of all assets less
! the cost and expenses which will lie
| incidental to their administration I'M
der what VIII be the most expensive
form of such administration. The
fact. however. not at first sight so OBJ
vious. though 1t more and more i'm
presses itself upon us. is that owing to
the peculiar nature of the properties
f. be handled, lack of good judgment
IA their management will result in the
receipt by creditors of less than the
present, and probably of much less
than the ultimate value thereof.
1t is believed that if Mr.. Singerly
viii continue to give his entire atten-
ton to the development of his great
paper. the peculiar qualifications which
enabled him to build up property
earning, it is stated. in the fiscal year
1896. 100000 net. and earning also, II
is said. in the last years an average
annual net earning of $4,000. will en-
able him TO do what not merely will be
impossible under changed conditions
namely. to maintain the present great
value OF the property-but also to iii
crease il.
This plan will, of course. be greatly
aided by Mr. Singerly's insistence that
the everything published or controlled
by him shall he promptly, without le-
gal contest, transferred TO the man.
ayers to be applied to the above pur-
pose"
The plan provides that the capital
stock Of the Record Publishing Co. or
of a company to which it's asserts shall
be assigned shall be fixed and issued
to an amount necessary to give all
creditors in class A par for their Gains
in a stock preferred as to dividends and
principal which shall bear 6 per cent
interest cumulative and all cerditors in
class 3 par for their claims in second
preferred 6 per cent. cumulative stock.
also preferred after the first prefer ID
stock as to dividends and principal and
all creditors in class c par. in the COM
mon stock of said company. No en-
cumbrances against the Record Pub
fishing Co. property is to be created
without the assent of the holders of
two-thirds of the preferred stock of
the two classes.
Glass A shall consist of asserting
creditors to the extent to which they
may hold liens against the Record Pub
fishing Co. or preferred or city claims
against the Bank or Trust Co., or per-
sons or corpora lions willing to advance
new moneys to be applied. at the best
discretion of the managers in the fur
thering and bringing about this reor-
ganization.
Glass b shall consist of holders of
claims against the Record or of claims
secured by it's stock. In case Of any
doubt as to the amount or actual exist
ence of a claim as being a valid one,
against the Record, the managers may
finally settle the amount and status of
such claim without liability to them
selves: or, if their decision be adverse
to the status of the claim as one
against the publishing company, the
holder thereof may insist upon judi
cial decision of his status.
Glass c shall consist of all creditors
other than those above specified. of any
of the parties reorganization of whose
affairs is now contemplated or may be
come necessary to the success of this
plan.
A note is here inserted stating that
there now exists 100000 of common
stock of the Record Publishing Co..
subject to the prior lien of 100000 of
mortgages.
After a full examination of the prop
erty it was recommended, to a syndi-
cate recently formed, that this stock
issue be increased by the issuance of
81. 600. 900 of preferred stock, making the
total issue sS.OOO,OOO, the 100000 of
HUI tSd6CS uCiLI6 lutCHuCu W NC Pdiu
out of the proceeds secured from such
new issue. Under these conditions, the
$1,000 900 of preferred stock at par was
oversubscribed for by the capitalists
and banking interests of Philadelphia.
The managers of the plan are to
make distribution of the stock within
30 days after sufficient assets have been
received to make the plan operative. In
exchange for the stock the certificates
are to be turned over to the managers
and the stock is to be subject to re-
demption by Mr.. Singerly within six
years. upon payment of its par value
with per cent. interest, less dividends
meanwhile declared.
Any assets obtained by the managers
from those having claims against the
bank in the distribution of the assets of
the bank. shall be applied pro rata to the.
purchase at par of the Record stock now
held by the new owners. of assented1
claims against the bank or their as
signees; or II the managers shall think 1t
advisable. to the liquidation of the bank