The Worcester spy. [volume] (Worcester, Mass.) 1898-1904, 1901-11-01

Another big financial transaction that
means a lot to the industrial life of
worcester was completed yesterday
afternoon, when the stockholders of
Advantageous Company, manufactur-
ers Of wall paper, had meeting at
the factory and voted unanimously to
increase the capital stock of the con-
Germ by issuing $225,OOO worth of new
preferred stock to bear interest at the
rate of per cent, payable semi-a1l-
nualIy, the new stock to be cumula-
tive.
There is now outstanding on the
company $4,000 of debentures, and 1t
is the purpose of the company to APP
ply $751; 900 of the new stock to retiring
these debentures. The holders of the
debentures will have a chance to ex-
change these per cent taxable securi-
ties at the rate of par and accrued IN
terest for the new 7 per cent non-taX-
able preferred stock. When the de-
bentures are retired, it will make the
total capital of the company S225,0OO,
original capital of the company having
been $50, 900 common stock. This COM
mon stock will be made secondary to
the new preferred stock as to assets
and earnings.
The present stockholders of the COM
pany have been undertaking to do
business for a year and half on their
capital of $50, 000 and after paying their
interest charges on a large floating
debt made necessary to provide a
working capital and making liberal al
lowances for depreciations for each
year. they have made about $4,000 of
surplus. While they have been doing
this, they have had but a year and a
half to do business and had rs months
for equipping the plant. The old COM
pany has never paid any dividends, as
the owners of the stock preferred to
let their earnings accrue for the beneht
of the company.
Back of the $225,OOO Of new stock
there stands a guarantee of 100000
common stock and upward of $4,000
surplus. which win make the book
value of the stock about S133, which
will be offered to the public at par.
During all this time the company has
been so under-capitalized that it has
been unable to take advantage OF cash
discounts, etc, which mean so much to
modern business. With the new capt.
taliZation the company can take du-
vantage Of the discounts.
hoard of seven directors Will De
announced in a few days and they Will
be men who represent the broad pusl-
ness interests of Worcester. Jonn r.
Allen, president of the old compa my
and George f. Higgins, treasurer, VIII
he retained on the new board OF ul-
rectors 49,,
agents of the corporation in negotiating
the sale of the securities and the pur-
chase of bonds.
At the meeting of the stockholders
Yesterday afternoon, Chandler BuIloch
was elected clerk of the corporation
Herbert Parker and Mr. Bullock have
been in charge of the law work con-
nected with the reorganization Whicn
has been under way for several weeks
Comparatively few people of Wor-
cester realize the character and extent
of the work that is being done at the
BARRIERS Crossing plant OF the Alien
Higgins Company and the reorganlza-
tion of the company will enable 1t to
expand until it will add considerably to
the business life of the city. 1t has
been on a sort of probation among the
capitalists of Worcester since 1t was es-
tablfshed a few years ago but II mas
nassed successfully through the test
"a now has the financial backing such
on enterprise needs to enable it to com
Te+e with its rivals. Lack of this SUI
ficient amount of capital to swing the
business has been serious hanulcap
in the past two years but the men az
The head of the concern knew they mad
good thing and kept on in spite OF the
dificulties until they were able TO CON
vince the worcester capitalists they
couId not afford to lose the business;
THE character of the goods turned
ont by the company is second 70 no
vail naper mandatory in the United
states and that It's fame is Tar reach-
inr is shown by the fact that 1t has al
re9dv built up a large foreign trade.
cases Of the worcester wall paper are
shipped regularly to London f9r Ihe
Trnropean trade-a case almost OF orlhs-
inc Goals to ACKNOWLEDGEMENTS even
the worcester company has to depenai
in a measure on Europe for some Oh
its ideas, especially in the line OF de-
signs. Europe still leads IN the artiS+
lie work of it's designers but wh zen II
Comes to the finished product the WoI+
cester company can ship its goods Fl l,l5
back IN the homes of the designers ana
sell Them at profit. This is mace pos
Chile nv the excellent facilities Ior
Turning out the wall paper ana, 10 the
man ACQUAINTED with the business, TINS
process is decidedly instructive anu en-