The Savannah morning news., 1902-09-30
IN A MONTHS TIME
CONSOLIDATED NAVAL STORES
COMPANY BEGINS BUSINESS.
TWO MILLIONS AND A HALF
WILL REPRESENT THE CAPITAL
OF THE CONSOLIDATION.

pany and EIlis-YOung Company,
the Two Savannah Concerns Inter-
ested-Wiu Handle the Business of
ZOO Operators and Control the Out
nut of More Than 100000 Acres
of Virgin Pine FOrcst-Separnte
ComDany to Be Orgn nized to Look
After Exporting.
The Consolidated Naval Stores Com
pany. with a capital stock of probably
s2.5OO,OOO, will be informally organ
lied in Jacksonville tomorrow. APP
plication for a charter for the new con-
Germ, which will take over the business
of seven of the largest naval stores
factorage concerns in the country, viii
he made at once to the Secretary of
State of Florida. and on Nov. l, 1t Is
expected, the company will be in
position to begin operations.
The consolidation of naval stores in
terests announced in the Morning
News three weeks ago has in the in
tervening period approached rapid
contamination, and yesterday Mr.. w.
C. Powell, president of the Southern
Naval Stores Company and the gen
orally accepted head of the new enter
prise. gave to the Mornings News a
definite and authoritative statement OF
the plans and purposes of the consoli-
dalton, more complete, extended and
specific than any that has been pub
lished.
The general features of the organiza-
ton have become known through arti-
cles published from time to time in
the daily and trade papers. These gen
eral features included the names OF the
constituent companies, the approx
mate amount of capitalization and the
location of the headquarters, other Or
fees and shipping points of the new
company, but much of its more lntl-
mate plans has hitherto remained lock-
ed in the breasts of the bold and skill
fu1 business men who have engineerded
the deal.
The Companies in the Deal.
There are two Savannah companies
TO be merged in the combine, the
Southern Naval Stores Company and
the Ellis Young Company. The other
company of Brunswick, the Mutual
Naval Stores Company of Jacksonville,
the Florida Naval Stores ano Commls-
sion Company of Jacksonville, the Gun
Naval Stores Company of Tampa and
Pensacola, the West Coast Naval
Stores Company of Pensacola. Ihese
companies represent present total
capitalization of about 81 600.
Five of these companies have already
entered into a formal agreement to
carry out the combination and the two
remaining concerns, the Ellis Young
Company of Savannah and the west
Coast Naval Stores Company or rem
sacola are less intimately concerned in
the deal in the matter of formallties
only. The consent of their controlling
spirits TO the combination has already
been secured, and their agreement to
enter it made.
The consolidation will mark the re-
tirement from business of all the con-
stituent companies save one. SIX or
the companies will go into voluntary
liquidation, their affairs will be wound
up and they will go out of business,
transferring their assets and good VIII,
at an agreed valuation, to the new
concern, and taking stock in 1T In pro
portion to the value of their present
holdings. This stock, however, Will
not be held by the old companies,
which will be dead in law and fact,
but by their present shareholders.
The Downing Company Not to Die.
The exception to the general rule of
liquidation will be afforded by the
Downing Company of Brunswick,
which will not go entirely out of bust
ness This company will take stock in
the new enterprise in proportion to the
amount of Florida business 1t can con-
tribute while it continues its own. Its
entrance into the Consolidated Naval
Stores Company will mean reduction
of about 80 per cent. of the business or
the Downing Company.
The headquarters of the company
will be In Jacksonville and offices viii
be maintained in addition in Savannah
and Pensacola. Savannah, Fernaudina
and Pensacola will be the ports from
which the products handled by the
company will be shipped.
1.-The Consolidated Naval Stores
Company" said Mr.. Powell, will
probably have a capital stock of 81,
100000. The capital was fixed orig
inally at 100000. and thus it stands
at present, but $500 900 will, in all
likelihood, be added to care for the
business offered by the Ellis-Young
Company and the West Coast Naval
Stores Company, which have become
prospective members of the CONSOLE
reached.
Millions of Virgin Pines.
''The company will handle the bust
ness of about 700 operators, represent
ing the ownership of at least 2.000,0 0C
acres of virgin pine forest in Florida
trees that have never been touched by
the woodSman's ak. In addition to
this it will handle the product from
more than 5000, 900 acres on which the
trees have already been cut.
Its annual business will amount to
not less than $4,000, 900. 1t will han
die on commission about 300, 900 casks
about 100000 barrels of ros-
in. In addition to this il
will maintain a large grocery and
supply house for it's customers. which
will itself do a business of probably
100000 a year. The estimate of a
total annual business of SIS. 900. 900. on
the basis of prices that now obtain. is
altogether conservative.
TT should be understood that the
companies which are to enter the con-
solidated companies. with the excep-
ton of the Downing Company are 70
lose their separate corporate existence
To speak accurately, the Consolidated
Naval Stores Company VIII not be "A
consolidation Of existent corporations.
but Of individuals. both factors and
operators. whose interests these cor
porat!ons now represent IN addition
20 the present stockholders u the seven
corporations entering the combination
cell srsAI