Arizona republican., 1903-10-01
The "Soo" Disaster.

The dipatches which appeared in Th' Republican and other papers during the past few days concerning the bust ness troubles at the two Soos"- Sault Sainte Marie, Michigan, and Saul Sainte Marie, Canada, have rot con- veyed an adequate understanding o the situation. as the news has dealt principally with the riotinS and othcl developments from day to day. Thous ands of men have been thrown out oi employment as a result O. the collapse of tremendous industrial enterprise one of tho most ambitious projects that the business world has known fol a long time. From Bradstreets of this week we gather the following interest ing details:
 The Lake Superior Company is the concern that has met with disaster. II was organized a few years ago to ex- ploit and utilize the enormous water power which was afforded b. the rap ids of the Sault Sainte Marie river. the outlet of Lake Superior. The scheme embraced creation of railways, stee plants and various other industries oi an enormous scale. Control was se- cured of the facilities for this purpose on both the Canadian and American sides of the river and very influential the scheme. Capitalized at about s100.- 000,O00. on which, according to the lat est accounts. nearly s30.0G0,O0O in cash had been paid in, the company pro- ally paid dividends from September 1899, until last December upon the per cent. non cumulative stock.
 Some nine months ago the first an embarrassment5 had overtaken the company, when it was stated that 8 loan of temporary nature had beer fioated in order to meet pressing neces- sities. It was then apparent that the whole scheme was too grandiose to be financed through ordinary means anC that the requirements of the company for additional car pital would run fa1 ahead of the plans to that end which were involved in the original financia outlines of the enterprise.
 Tn order to secure the above men, toned loan of s5,O0O,OOO which was made by Mcssrs. Speyer & Co.,, of New York, the management of the company placed in their hands the stocks anf bonds of the constituent corporations amounting to a very large par value control of the enterprise. The loan ha: fallen due and the bankers are no willing to rerew it. A plan, to whicf reference was made some weeks ago was formulated for the issue of S15, GOO 900 of per cent. collateral trust bonds to be subscribed for at 60 per cent. O their face value by the stockholders This plan, however. fell absolutely fat the holders of the s35,0OO, coo of pre- ferred and $74.C00 OG0 of common refus ing to go into the arrangement. Tn, temporary loan of s5,O00, ,000 matured and the bankers referred to above wht held this obligation manifested no dc sire to go any further ir the arrange ment. In fact, while showing a yer, lenient spirit toward the manage n of the corporation, their attitude iron that time onward has indicated a de sire to have the loan liquidated.
 These circumstances led up to the de veloInncpts of the present week, whicl enlbrac' q practical confession on tn part of tho management of the com pany that it is unable to make an, feasible plans for raising the $5,OO009 necessary to pay off tine Speycr tar This sum, together with about 26.OOC. GOO of underlying securities. const:tut the obligations which must he met outside e some s4OO.0GG of wages .lu the unfortunate employees Of the vari ous constituent companies. who hay the closing down of all the plants Following these developments came tn announcement that the Mes5cs. Speye had advertised the sale of the collatar al held against the loan which they Ina made. and there have since been
 variety of runners bearing upon tn possibility of syndicates being forme to assume the underlying mortgage and to pay off the s5,OOoO0O loan. N results, however, have followed, an the financial markets are still in dout about the outcome of the matter whic illustrates very forcibly, according { market and the absence of current SUI plies of capital adequate to successful finance incomplete schemes of tn