The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-09-20
LAKE SUPERIOR CONSOLIDATED
DIRECTORS MEETING TOMORROW
TO SETTLE ITS FATE.


Decline Of the Stock Of the SlOO. OOO. go
Companies 70 IL for the Common
and = for the Preferred Has Cost the
Holders Millions philadelphia Holders
The future OF the slOO, 600 600 Consolidated
Lake Superior Company, which controls
a dozen or more INDUSTRIES, including steel
mills, tract ion systems, ferries. railways,
pulp and paper mills and light and power
companies on or near the Sault Ste. Marie
is likely TO lie determined at the meeting
Of the full board OF directors in this city
tomorrow.
A director said yesterday that while hope
WAS still entertained. the outlook was dark,
and that the prospects were that reorgan-
ization would he deemed best in view OF
the forced closing OF the plants for lack
OF money.
The company was organized in 1897 as the
American Lake Superior Company, and
gradually enlarged its scope until it had
a capital Of 500, $50. 900 and controlled the
Lake Superior Power Company. capital
g. 600, 100; Michigan Lake Superior Power
Company bonded debt S3.SO0,0OO: Sault
Ste. Marie Pulp and Paper Company.
capital 5000 900; Tagonn Water aud Light
Company, capital 100000 Algoma Cen
trial Railway. capital 1000; the North
Shore and Manitoulin Railway. capital
$40. 600 600; the International Transit Com
pany. capital 3l5O.OO0; the TRANSIT Mary .
'rrac; ion Company, capital 100000: the
Algoma Commercial Company capital Sl0,-
OOO,OOO: the Algoma Steel Company. capt.
tai $2O,OOO,O 900, and the British American
Express Company, capital SiC0,0O. The
Algoma Railway runs 20 the company g
many mines in the Michipioot en- iron ranges.
and in all some 1000 men were employed.
The organizers and directors OF the COM
peny include Z. j.. Berwind. c: Z. Orviss'
Charles H. Tweed. Charles Mac donald.
s. M. Provost, Samuel Rea. Fl. A. Berwind
and James y. Swartz. F. II. Clergue. the
Canadian promoter and president Of the
company, was succeeded recently by Cor
nelius Shields.
The company paid dividends on the pre-
ferred stock until December last, when they
were suspended owing to money embarrass.
in March by a loan OF 35.050 600 from a
| syndicate headed by Speyer Il Co. This
loan was to have been taken up in July
but was not. and bond issue plan 20 pay II
| and provide working capital also failed
Money was needed urgently, and as a clause
| in the Speyer agreement prohibited Liens
an executive committee consisting Of Mr.
Berwind, II. II. McHarg and Samuel Req
| opened negotiations for permanent fund
ing loan with institutions, including the
Equitable Trust Company OF this city. Tie
negotiations, il is understood, have met
with so little success that all but the ferry
| light and traction plants OF the company
closed down on Friday, and directors
meeting was called for tomorrow.
to find plan for the rehabilitation Of the
company. 1t has no bonds excepting
small issues on subsidiary companies, and
it is understood that the Speyer syndicate
took the securities OF the subsidiary COM
panies as collateral for it, loan. In the
event Of failure TO repay the loan the Speyel
| syndicate, which, it is said. includes Kuhn
Loeb 4 Co, Blair 4 Co., and Boston and
! Philadelphia trust companies, would If
| the ordinary course offer the underlying
securities at auction. and the buyer woulc
| come into the control of the properties
against which the bonds are issued. Speyel
| 4 Co. refused yesterday TO state wha'
! action they had taken, or intended TO take
but it is believed statement will be made
! for the syndicate tomorrow.
The stocks Of the Lake Superior Com
pany we're largely held in Philadelphia
where their decline to J. for the common
and for the preferred has caused Losses n
| millions of dollars.
| PHILADEI.pHIA. Sept. I8,--It was asserted
on the street to-day that Spever 4 Co. hac
foreclosed on its collateral loan of S5.050. 0O'
| to the Consolidated Lake Superior Com
| panv. The statement originated in New
York and received widespread circulation
| in this city.
| The note was due on July 1 last. and unde
! its terms the New York banking Arm coulr
at any tim" seize upon the company
| plant and assets.
| Attorney Freeman. counsel for the com
pany declared tonight that he knew moth
| ing Of any foreclosure. Vice Presiden
Sanborn could not be seen and none o
/! the other directors would admit any knowl
| edge Of the proceeding. A meeting o.
/ the directors will be held in New YORK.
on Monday
| p. F. kothermel attorney for the dis
senting stockholders. said tonight
| Il have been unable to learn to-da-
whether Speyer 4 Co. have foreclosed o
not Those | represent will apply, If n,
better reorganization plan is offered thai
those offered so far, for the appointment
| Of receiver to inforce their rights agains
| hscribinp syndiCates and at hers