The Providence news. (Providence [R.I.]) 1891-1906, 1903-09-22
DIRECTORS
CAN'T GET
FINANCES
Consolidated Lake Superior CON-
pany Plant Pledged as Col.
lateral for S5,050,000 Loan

New York Sept 22-The directors OF
the Consolidated Lake Superior com
pany after a two hours meeting yester-
day gave up In despair the attempt 10
fnd some plan for saving the properties
OF the company which are In the hands
OF Speyer a. Co, as collateral for the
loan OF 5000. 900 made by the banking
house TO the company some time ago,
and announced that the stockholders OF
the company are entirely at the mercy
OF the banking firm. which can sell out
the stock and bonds OF the operating
companies in the Consolidated Lake Su
perior company at any time IL sees At.
With the announcement OF this de-
cision came also a practical acknowl-
edgement that they believed that their
plans for financing the company TO a
sound position have been blocked az
every point by the great financial in
terests that are behind rival steel com
panies In the United States
After the meeting, speaking for the
other directors, y. II. Sanborn said
Nothing has been done. because there
was nothing that could be done. The
directors can do nothing The whole
situation is now In the hands OF Speyer
e. Co The directors can only wait and
see what Speyer & Co. will do
Meanwhile in Sault Ste. Marie Ont.
where the plants OF the corporation are
ing eagerly for news from this city. for
the company owes them money and holds
out faint promise OF future work
In addition to the loan OF s.. $50 n00 the
obligations 10 employees will reach be-
tween s15o.ooo and s2o0.cCo week ago
~ looked as IL help would come from n
syndicate formed for 100000 which was
being developed IL Is understood that
after so per cent Of -his amount had been
subscribed the syndicate was annulled
Tor two reasons.
PUNCHED HOLES IN SYNDICATE.
First. that certain banking interests
would not enter It. and. second. because
the reports Of experts who had been ex-
emining the Consolidated Lake Superior
properties were unsatisfactory.
director OF the corporation said yes
terday: 1T seems "a ifs efforts were
being made tn hurt us rather than assist
us. Someone punches holes into our syn
dfcates as soon as they are formed"
The general impression was that the
property would be turned over to the
Speyers. They will practically be able
10 control II for IS, 900. 900. The value OF
the properties IL placed at about $780,
600. 900. IL was on this basis that
reorganization was proposed. Originally
the capitalization was $4,000. 900. OF
which $s2. 900 900 was common and s35-
A reporter who inspected the plants
OF the Consolidated company at Sault
Ste Marie recently found the splendid
steel rail factory. which employed 1900
men. idle and filed with cobwebs. No
work has been done since the previous
November. The pulp mills and car man
ufa cturing plants were running with half
forces. The depression produced I'm the
town by the uncertainty OF the outcome
was very marked.
There were many vacant houses. and
persons were moving way. In addition
10 being out Of work. many Of the en-
ploywes had bought its shares, in which
there has been n decline from above 20
IN the preferred 10 below 5. and the com
mon from the 3os to so cents.
The Consolidated company Is the very
heart OF the 800" and the city Is now
in the position Of mining camp which
suddenly learns that the ore supply has
vanished.
Speyer syndicate. referring 10 the action
OF the directors OF the Consolidated Lake
Superior company said yesterday:
I'VE have been very lenient with the
company. We viii probably foreclose
the loan. selling the collateral pledged
with us at auction The syndicate Will
seek endorsement for its outlay"
suggestion that the syndicate might
take over the company and run IL pending
q reorgani liza ,ion was not seriously enter
tained by Mr. Tweed