The sun. [volume] (New York [N.Y.]) 1833-1916, 1902-12-14
LAKE SUPERIOR STOCK SLUMP.
PREFERRFD STOCK DROPS 81
POINTS IN THREE DAYS.
Director says That Failure OF Weak
Subscribers TO Meet (Ril for Third
Payment on the stock Led 10 Sell.
s-NecesSary Loan Arranged For.

The course of affairs in the Consolidated
Lake superior Company. the preferred stock
OF which has declined IS points on the Phil
adelphia Stock Exchange since Thursday
last has been closely v atched inWall 81 rect,
whore much Of the stock is held. Tho
latest developments, including the practi-
cally compulsory resignation Of T. = Lewis
who has been president of the company
since Oct IS; the deferrng Of the regularly
declared dividend OF IL. per cent. and the
floating of loan Of nearly s.. 600 900. in large
part through Speyer h Co. and the Morton
Trust Company of this city, were widely
commented on yesterday.
In connection with these developments
a director of the company made this state
ment yesterday:
The whole trouble In the company's
AFFAIRS arose from the failure of weak SUBJ
soribers TO meet the latest call for payments
on their subscriptions. Twenty per cent.
has been paid in on about - 90, 600 worth
OF preferred stock A call for third pay
ment was made, but on recount of stringent
money conditions the weaker subscribers
failed to respond. In order to pay ex-
perses and to carry out the big improve
ments We arr making IN plants. we decided
to defer the dividend, thereby saving
about q. 100000.
a lot of the weaker Subscribers threw
their stock on the market. Some of the
stronger ones got frightened and followed
suit, and the price went tu,nbing down.
We had already arranged for loan of
about 81, 600 900 in this city and Philadelphia,
but in tho face of the st ock's performances
il was recalled. Now We have arranged
for another loan, which will be paid In III
stallments, as Wa need the money TO com
plete the plans we had under way. 1t will
take about 5000. 900 to finish the work
I've Just received a despatch from
Canada saying that everything is in good
shape there. 1t speaks of Il Zig order of
rais from the Canadian Pacific at $50 a
ton. an order for cars from the same com
pany, and sale Of l0.OoO tons OF pyrtes
| at a good profit"
The company is the result Of the merger
in 1901 Of the American Lake Superior
Company and the Ontario Lake SUI erior
Company, It's authorized cay ital is 81 GEO.
| OW common and 335 oOOlOOO preferred
per cent stocks. OF the common S87 &C.,
0OO is outs, andihg and Of the preferred
S27. 900 600 The company owns the Lake
Superior Power Company which operates
a .00O0 horse power plant at SAUL Ste
Marie, Ont, and the Michigan Lake Su-
perior Power Company operating e0WO
horse power pant NJ smut S'e. Marie. Mich.
II also owns the following additional
properties the Gertrude" nickel mines
In the Sudbury nickel T ange. Canada
from which "A nickel steel il made that is
taken, up to ESQ tons daily. by the krupp
Gun Works under a fve-year contract;
the Helen" iron mine in which are said
to be 80 .OOO, 900 tons Of iron: a cont ract With
the Province Of Ontario, by which the
company became the owner of grant
of timber equivalent TO 1000 square miles
of virgin forests; the Tagona. Water and
Light Company. supplying water and
light to the town Of Sault Ste. Marie, Ont, ;;
,hs Aso,na C. s s,eamsayn t company'
the Algoma Central Telegraph lines: The
Algoma Commercial Company, and the big
Alyoma steel plant
The directors oi the company include
4. J. Berwind, II. 4. Berwind. James But