The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1902-12-19


COMrANY'S STATEMENT.
Mr.. Search said in substances: The only
necessity for the borrowing of money by the
Consolidated Lake Superior company arose
fro NTH ecOmpletiOn Of construction con
tracts in advance Of the payments due the
company on account of subscriptions to the
preferred stock. In anticipation of these
payments a loan of So, 100000 had been negO-
tiated and the arrangements were practi-
cally completed, when somebody started
selling movement and the market prices OF
the company stocks went down so low
that bal kers who had virtually agreed to
make the loan with the unmatured subscrip-
tlUns for preferred stock and the Occom-
panying common stock as collateral Were
unwilling to accept this security because OF
Its reduced value, and the loan Iell through.
1t became necessary, therefore. to reopen
negotiations, and the arrangement OF 5ucn
Il loan under existing conditions in the mon
ey market was not matter that could be
settled Uti hand.
In taking up the matter anew with the
banking interests the end in view has been
to provide not only for the immediate needs
of the cOmp2ny, but also to cover all the re-
quirements of uncOmpleted construction IN
tended to be paid out Of the proceeds OF the
sale Of preferred stock as the underwriting
installmentS should be received. The plans
now being worked out contemplate the pro-
vision of sufficient funds to complete all the
unfinished undertakings and to put the conf
pany's different works in condition for prof
table operation. The sums yet unpa Id on
account of preferred stock subscriptions, IT
was said, would have covered all Of this
amply, but, in view of the uncert; ~~ty or
the payment Of these subscriptions whAc the
prices of the stocks are at such low hgure,
efforts are being made to provide the needed
funds irrespective of the proceeds OF stock
subscriptions
The first necessary step was to prepare an
exhaustive statement to account i'll detail
for the expenditure of every dollar received
bn oil Of DrpfnrrpI stock the Issue
of $3, 500, 900 Of bonds by the Michigan Lake
Superior company, the 100000 of bonds of
the Tagona Water and Light company, anu
the subsidy payments by the Canadian gov
eminent the total Of these receipts making
a sum in excess of $26, 100000, The nrepaE-
alton Of such statement as this was trc-
mendOus task for so short time. nut by
working day and night 1t was completed
and ready for the committee or bankers on
Monday.
This statement apparently satisfied the
bankers of the existence of assets warrant
ing such a loan as was desired, and full
statement of the present and future require
ments of the company was then asked for
US basis for determining the amount or the
loan. This statement, which necessttates
very careful and thorough analysis of the
company's uncompleted contracts, Is now
being prepared and will be ready to-day tor
the committee Of bankers
Lawyers representing the banks and trust
companies have Teen making thorough CN-
am La ;nn If the records of the e. nS''l ic'td
Lake Superior company and its subsidiary
corporations in order to establish the entire
legality of every step taken in the organiza-
tiOn OF the companies and issuance OF their
securities. Thus far there has been no hitch,
and every indication points to O successful
completion of the pending negotiations and
the provision of ample funds with which to
discharge all current obligations and to pay
for the completion of all work that has been
undertaken. What sum of money viii be
rod for nIir Hnfnitp-
ly determined until the statement now In
process of process of preparation Is COM
pleted.
Mr.. Search stated that all concerned in
the conduct of the cOmDanyS affairs were
agreed as to the policy that would govern its
operation, and that no further expansion of
its operations was contemplated. Every
effort will be devoted to the completion OF
works now under construction and the plac-
ing Of all the company's operations upon
paying basis.
FUTURE DEMAND.
What is required to complete various I'M
dertakings was briefly outlined by Mr..
Search. The Bessemer steel works and rail-
mill are completed and fully equipped but
the two blast furnaces to supply pig iron
for these plants are still unfinished, owing
to extraordinary delays on the part of con
tractors for material, machinery and equip
ment Their completion is not counted up
on before early In the spring, although the
present stage of the work seems to offer
hone that they Will be finished earlier. The
AlgOma Central and Hudson Bay railway
is finished and in operation for Il distance
of ninety-three miles, and the intervening
section of ninety-nine miles necessary to
complete rail connection between the ir0u
mines on the Michipicoten range and the
blast furnaces at Sault Ste. Marie is all
graded and ready for track laying. Several
bridges, however, are to be built on this
line.
The great water power canal upon the
~ oF thn Mnp Sc ,,ttrn aud
its power house are completed, and the in
stallation of the power house equipment IS
we'll advanced. For the treatment of the
nickel ores from the company's mines near
Sudbury one smelter has been In operation
for several months, two more are under con-
structon and bessemerizing plant for the
further concentration Of the matter prOduc-
ed by these smelters is under contract All
of the other works are practically complete
and in operation.
With regard to the terms of the proposed
loan Mr. Search said that the exact details
had not been arranged, but it would be for
a year probably, and that would give ample
time for any read ustment of the affairs of
the company that might be deemed neces-
sary or expedient. With the funds provided
by this loan the company, he said, would be
in an entirely safe condition, able to pay all
current liabilities, to complete all its under
takings and prepared to operate them all
with prOht.
Mr. Search is the acting president of the
company, He has been for several years
president of the Manufacturers Association
of the United States and Is very capable,
rt.1Ra.a Il lx..,.s