Evening journal., 1903-10-03
REORGANIZATION
OF LAKE SUPERIOR
Shareholders Called Upon to
Raise $25o,ooo by Next
Tuesday
ASSESSMENT FIFTY CENTS SHARE

Philadelphia. Oct. 3.-John C. Car
ruth. the receiver Of the Consolidated
Lake Superior Company, has issued a
statement calling upon the sharehold-
ers to raise $3.50 900 by Tuesday to pre-
vent the sale of the securities plegd-
cd with Speyor & Co.. of New York,
to insure the payment Of $4,000. 900
loaned the corporation. The reorgani-
cation plan was made public at the
same time.
The statement follows:
"The sale of the property OF the
company pledged with Speyer & Co.
for the loan of s5.O50.OOO was adver-
tised TO take place, but upon
urgent request has been postponed un-
I'll the sth Of October at - o'clock.
1T is necessary that $3.50, 900 should
be Immediately paid into the EQuit-
able Trust Company Of Philadelphia,
depository. which will, upon proper
vouchers. liQuidate Indebtedness of
the Consolidated Lake Superior Com
pany or subsidiary companies The
payment of this sum will insure the
further postponement OF the sale for a
period sufficient to enable the stock
holders to accomplish reorganization,
If they act promptly and favorably. |
To make this payment and provide
for necessary expenses, it is impera-
tive that the stockholders should pay
on or before the 9Th of October to the
Equitable Trust Company an assess !
ment of 80 cents per share. Every
effort has been made to prevent this
sale and the stockholders are now
asked in their own interest to prevent
the absolute and irretrievable loss Of
their entire property.
"The amount paid will be upon the
assumption of the adoption Of the fol-
lowing plan of reorganization, which,
It is believed, has been generally ap-
proved:
Raised by means of an underwrit-
ing open to all stockholders, $S,oO0,-
600.
This sum will repay Speyer loans,
the floating indebtedness of the com
pany. all expenses Of reorganization.
and leave about $1.000,000 new money
Tor working capital. These under
writer's TO organize a new corporation,
with 10000. 900 capital. which corpo-
ration will take over all the property
Of the company under proper legal
proceedings. The new corporation
will issue s10,OOO.O0O first mortgage
bonds. OF which the underwriters will
receive s7,143.0OO, and which bonds it
IS proposed shall be issued by the
Algoma Central and Hudson Bay Rail
way Company secured also by deposit
Of the stock and bonds of all the sub
sidiary companies; the unused 81
$4,000 of such bonds to remain in
the treasury for the future of the
company.
"The bonds taken by the underwrit
ers to be offered to all the stockhold-
ers at 70. with a stock bonus of 80 per
cent
stock IN the new company to be
offered to each stockholder upon max
ing cash payment, at reasonable
times, OF SO per share for the old stock
surrendered. the underwriters giving
NANi NA'A Rh' nnAtl VI Nh1 oAcNh ~ NAN
new company for two shares of the
preferred stock of the old company,
and one share Of the new stock for
four shares Of the common stock OF
the old company.
IF this plan of reorganization is
agreed upon, the stockholders paying
the 80 cents per share will be eventu-
ally credited the amount paid on the
SO a share provided for in the reor-
ganization agreement
III the entire sum Of s250.000 is not
raised by this or other means. the
sums contributed, less the costs Of ad-
vertising printing postage and COM
mission IN trust company will be re-
turned to those contributing"
The offer made by Speyer 6 Co.
was TO extend the time announced for
the sale OF assets. for a period Of 60
days. II the amount due to workmen
Mt the $500" was raised within q
week. and paid The Immediate call
Tor the 50-cent assessment is for this
purpose.