The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1903-08-26
FERTILIZER TRUST
CAN'T Pay DIVIDEND.
Order of the Board Of Directors
Announcing That no Dividend
on the Common Stock Will
be Paid for the Present.

Richmond. Va, Aug. IS.-Ihe VIZ
ginia- Carolina Chemical Company
directors decided this afternoon to pass
the dividend on the common stock.
The following statement was issued !:
TO the Stockholders of the Virginia
Carolina Chemical Company; Your
board of directors desire to say that
for the year ending June Is, 1908, the
Viginia-Carolina Chemical Company
actually sold and delivered 992, 600
tons of fertilizer, being an increase of
% per cent over its business of the
preceding year. In addition to this
they manufactured 100000 tons more
of completed fertilizer, which they
were unable to deliver because the
railroads could not furnish transporta
ton. This large increase in business
necessarily involved the use of more
capital during the period between
the sale and delivery of the fertilizer
and the payment thereof by customers.
This additional capital has heretofore
been easily obtained through the dis
counting of the company's bills receiv-
able Of which, on July Is, 1908, the
company had on hand over Sc, coo, 600,
averaging about 81, 900 each, and over
50, 600, 900 of accounts receivable con-
vertible into bills. These bills have al
ways been considered the choicest paper
issued in the South, and as such have
been readily available for current
funds. In the unusual financial situa-
ton which existed this year this course
of business has become impracticable,
and twas accordinly necessary that
your company should provide itself
with sufficient additional cash capital
to carry its business over to the fall
months, when its bills receivable are
collected. Your company, therefore,
applied to Messrs. j. P. Morgan &
Co. of New York, who have
organized syndicate, including
Messrs. Blair &aCo. the First Nation
al Bank, the National City Bank, the
Morton Trust Company, the National
Park Bank and the Bank of America,
to advance to the company, from time
to time during the next twelve months,
as required, amounts which, together
with its other resources, your directors
deem will be amply sufficient for all
your companys' needs. Such advances
will be made apon the unsecured notes
Of your company, leaving your COM
pany's assets in it's treasury free for
use in it's current business as hereto
fore, thus indicating the high credit
which it enjoys among the leading
bankers. Although the company now
has more than $500, 900 cash working
capital, the business Offering each year
has Increased to such an extent that
your directors deem it essential that
some plan should be devised for the
permanent provision of additional cash
working capital, so that the necessity
for borrowing so large an amount of
money during certain months of the
year may be avoided. 1t is expected
that, through the cooperation of the
bankers above mentioned, some ade-
euate plan will be devised at an early
date to accomplish this purpose. In
the meantime, until such per-
manent arrangements shall have
been completed, your directors
have though it best to sus-
pend the payment of the dividend upon
the common stock.
'.<Virginia-Carolina Chemical Com
pany.
"By S. 7. Morgan, President.
W. B. Chisoolm, of Charleston, S
c., retires from the the directorate
and is succeeded by Edward 7.
Stotesbury, member Of the firm of
Messrs. Drexel, Morgan & company,
Philadelphia, Pa.
Director F. B. Dancy, of Atlanta,
also retires and is succeeded by Nor
man S. Meldrim, president of the
Securities Company of New York, New
York city.
E. T. Stotesbury, Samuel Spencer
and Henry Walters form new finance
committee.
The following directors We're present
at today's meeting: r. B. Addison,
S. D. Crenshaw, L. A. Carr, A. R.
Ellerson, S. T. Morgan, S. W.
Travers, Henry Walters, F. W. Hittle,
E. T. Stotesbury and Norman S.
Meldrim, the last two Just elected.
Absent, j. b. Duke and Samuel
Graneay SSE7s -.