The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-09-24
Plant Was Making Money.

TORONTO, Ont, Sept. 23.-R. +. Clergue
made the following statement to-day re-
garding the troubles of the Consolidated
Lake Superior Company:
THE financial difficulties of the works at
Sault Ste. Marie have certainly reached
a crisis. Mr. Shields accepted the presi-
dency at the invitation of myself with the
most positive assurances from financial in
terests In the company of the most reliable
character that funds would be provided
the first OF July for the taking up OF the
Speyer loan and for providing Z.5oo.O0o
working capital. The unexpected con-
tinuance of money pressure in New York
made it impossible for the fulfllment or
their promises. The efforts made to secure
funds by other means have so far failed
and only within the past few days, when
this result became apparent, has IL been
necessary for me to give personal attention
TO the financial requirements of the CON-
pany. The Speyer syndicate is not adj
verse to the shareholders interests and will
be entirely satisfied, and believe gratifed.
If the property can still be saved for those
whose capital has created IL.
For the immediate present the company
is more likely to be embarrassed by pres
sure from Canadian creditors who regard
their claims unsecured
THE works represent an expenditure OF
$25000,0O0, and the amount OF expenditure
has been made in the establishment OF
economical type. supplied with all nee
essary new machinery of the highest
grade and procurable at a cost below
any competitors. Not three-tenths OF
the capital expenditure has yet come into
productive form in operating the works. al
though the entire plant Is now completed
and ready to start up TO its full capacity.
Yet the small fraction OF the plant now
in operation has earned In gross in the
last four months over Sl,3cO,00O. and In net
over $500, 600.
This is at the rate of 81, 100000 net per
annum, with less than one-third Of our
invested capital productive. and with our
various nickel and steel works only now
come into operation, having an earning
capacity from orders practically on hand or
two and one-half millions annually IN adj
dition. That under these circumstances
for the Speyer loan must seem unaccount-
able but such Is the condition at date.
when the certainty of this situation be-
came apparent to me quite recently invited
an examination Of our assets and resources
by certain Canadian and British interests.
the expectations of our shareholders in
making their original investments and the
directors Of our company will solicit little
further indulgence from the Speyer syndl-
cate with a reasonable certainty that IL will
grant the brief respite which only now
seems necessary for the complete financial
rehabilitation.
although I am confident that the pres
ent shareholders will be saved their en-
tire investment, yet should they be obliged
to suffer some loss the continued operation
of the plant at Sault Ste. Marie to the sub
stantial profit of the operators Is quite as
certain as the continued existence OF the
sderation and indulgence OF the Canadian
creditors for a few days will be OF the
greatest possible assistance in securing the
financial relief now in sight.