Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1901-10-31
FIBRE CONCERNS TO COMBINE
Movement for Consolidation is
Now Under Way.
FOUR COMPANIES IN THE SCHEME
Two in This City, One in New
ark, One in Boston.

VIII be Incorporated Under the Laws of
Delaware With Capitalization of
S4,000,0O0-o Object is to Prevent Ruinous
Competition and Economize Production,
Under the name of the American
Vulcanized Fibre Co., to be incor-
| porated under the laws Of the State of
Delaware, with capitalization of
| 1000, 600, the Vuloanized Fibre 90. of
Wilmington, the kartavert Manufacture
ing Go. of Wilmington, the American
Hard Fibre Co. of Newark, and the
Laminer Fibre 90. of Boston, Mass,
are in process of consolidation.
The details of the plan are set forth
in the following circular from the
| directors of the Kartavsrt 20. to the
stockholders thereof, similar circulars
being issued by directors of the other
conosrns to their respective shares
holders:
Dear Sir: A consolidation into one COR
poratlon Of the manufacturers of the Vul-
canlaed Fibre of the United States is in
progress OF organization.
The new company will have an authorized
capital stock of 50, 400, 600, of which $780, 600
VIII be per cent cumulative Preferred
stock and the balance of So, 500, 600 will be
common stock and will also have an author
lied bond issue of 5000, 600 of 6 per cent,
2O-year gold bonds, secured by mortgage
on the entire property of the new company,
such honds to be redeemabe at the option
OF the new company after three years at los
and accrued interest; of the authorized
capital stock and bonds there will remain in
the treasury on the uate of commencement
OF business, to be used for expanding the
operation OF the consolidated company,
S5UU,UUO OF common stock, $500, 600 Of Pre-
terred Stock, S10O,O00 in bonds, also,
500, ,000 in new cash working capital.
The plans in detail Of the new company
have been laid before your Board of Direc-
tors and carefully considered by them and
they have deemed it for the best interests of
the stockholders of this company 10 grant
to the organizers an option for the purchase
OF tho entire capital stock of this company
at price, payable in securities of the new
company, highly satisfactory to your direc-
The option which your directors have
granted contains a provision that on or
before the first day of December the organ
izers shall serve notice upon your President
OF their desire to exercise the option, failure
to serve such notice to be considered as a
cancellation of the option.
10 facilitate the consummation of the
transaction outlined above. you are re-
stock with the Security Trust u Safe Deposit
Co., of the city of Wilmington, State of
Delaware, on or before the 18th day OF
November, and such company will issue 10
you receipt by which it obligates itself to
either return to you your stock without ary
cost to you on the first of December l.ass,s.,
in case the option referred to Is cancelled
or on the exercise OF the option and n COZ
summation of sale Hereunder to the new
corporation to deliver to you your pro Iatn
proportion of the purchase price paid fot
this company's stock.
We desire to say, as directors of The Err-
tayeIt Manufacturing Co., that from o r
examination of the plans submitted to US hY
nj f.F
our belief that il is for your best Interests
TO exchange your stock in this company fcr
stosk and bonds in the new, as we beiiete
that the new company will pay its Interass
and preferred stock dividends promptly and
that 1t has every prospect of paying div.
dends upon the common stock of from 6 per
cent to per cont.
Our efforts in your behalf will be very
much facilitated it you will kindly give this
matter your immediate and earnest atten-
tion, SO that every share Of this companys
stock shall be deposited and certificates of
the new company issued therefore on or
before the first day of December.
We will be pleased to inform any stock
holders making inquiry, the proportion of
bonds, preferred and common Hstock, also
cash he will receive under this option.
Yours very truly,
A. ]. Hart. president; 8. N. Trump. vice.
president; s. j. Wiley secretary; ID. W.
Masters general manager and treasurer;
.. +. johnson, J. II. HofTecker, Jr., w. r,
Brinckle, ThoE. j. Lawson, @. N. Trump.
A.. A. Canelle, j. Parke Postles, C. Fred
erick, j. D. Siser, directors.
Officers OF the other Delaware COM
psnies are: Vuloanized Fibre Co., j.
h. Pierson, president; Frank TAYLOR.
can Hard Fibre Co.. S. j. Wright,
president. The stockholders of the
Vulcanized Fibre Co. will depoait their
stock with the Equitable GUARANTEES
and Trust Co.
For two years this consolidation has
been in contemplation. The business
of the companies is in excellent condi.
tioR, and the object of the combination
is not, it is stated, an advance of prices,
but to economize in production. 1t
means Capitalization of administration.
1t is to prevent ruinous competition,
according to one of those interested,
and is not to be attended with any
advancing of prices.
George b. Hanfard of New York, one
of the leading organizers of large cor
who is an expert on the sub
iect, has devoted much time to the rer-
fecting of this plan, and largely through
his efforts has 1t been made effective.
William Il. Brinckle, vice.president Of
the Security Trust and Safe Deposit
Co, and director of the Kartayert
Co., has heen one of the active spirits
in effecting the consolidation.
The next 60 days will see, it is
the perfection of the new
All the plants are to be
in operation and without
change in working forces. It
is understood that all the concerns
which have entered this compact are in
condition and well managed.
fibre has been developed
principally in the last 90 years, the in
crease in the use of electrical appliances
being one source of the great demand
for the output. Fibre specialties take
the place of wood and metal in mary
devices, and foreign as we'll as domestic
trade is large. Each of the companies
has fine plant The Vulcanized Fibre
10. has much improved its works at
Tenth and Walnut Htreets. 1t is the \
pioneer in this city, having been started
in 1875 with William Courtney Of New
York as president. The Kartavert Co.
1t Beech and Anchorage is now spend
ing SIS, 900 or $40, 600 in an enlargement
If its plant. A splendid factory IS that =
,f the American Hard Fibre Co. at
Newark. The Laminer Go. at Boston
is a large concern. Reorganization
lnder the new name will be effected
after the stockholders in each company
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