The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1903-07-03
Trouble Follows When
Tylee's Proposal Is
Turned Down.
U. S. COURT MAy>SETTLE
Question ofWoo d oek's Pat to nts
.-lnaide Story OF Recent
Negotiations Shows That
Crash 10 I'm m mont.

CITY. tallure OF the last plan TO
finance the company leaves it's stock
holders absolutely devoid of resources
for operating the plant. Application
for a receiver Of the company's af-
fairs Is threatened, and rumors Of
suits from long-delayed creditors are
reQuently expressed Wednesday. Pos
five declarations of their intention
to file suits against the company were
made by them Tuesday. This led to
a special meeting of stockholders
Tuesday afternoon in the Office of
Lynch, Day & Day. Desperate meas
ures to stay the impending crisis were
decided upon, and conditional offer
was made to sell out bag and baggage
to Messrs. Tylee If 33 1-3 cents on the
dollar were realized from the sale.
Ever since the expensive plant in
the southwest end of the city was
built, and money was borrowed to
float the company on anything like
q solid basis, effort after effort was
made to secure the necessary backing
with which to turn out cars, estab-
lish demand for them and realize
profits.
CREDITORS WAITED ON HOWE.
When the plan of G. M. Howe for
refinancing the car company was an
nounced, creditors consented to stay
their claims for the time being.
Shortly before the expiration of
Howe's option, w. H. and G. L. B.
Tylee, both of Worcester, Mass, be-
came interested in the affairs of the
company An option was secured
which expired on midnight Saturday,
June q. Messrs Tylee formulated a
plan to pay off the present debts of
the company, restore its muddled af-
fairs and secure a bond fotation with
which to start manufacturing at once.
The failure to endorse the plan was
announced by II. A. Cavnah to Walter
Randall, attorney for the Tylees Tues
day morning. This came at the end
of series of conferences which were
unsatisfactory to both Sides The
stockholders today as well as Messrs.
Tylee, are greatly disappointed over
the result.
FINAL CREDITORS MEETING.
Creditors rose in their demands q
few days ago, and became more in
sistent Stockholders were willing for
almost any kind of settlement. The
latter had been assessed and had ad-
vanced money for the company. The
termination of 1t all came when a
creditors meeting was held late Tues
day afternoon in the offices of Lynch
Day & Day. Attorney Randall having
announced tnat further negotiations
with stockholders were at an end, was
on the point of leaving the city. At
torney Austin Lynch succeeded In
locating him before he left. 1t is re-
ported he presented the proposition Of
the stockholders and creditors, to sell
out the plant entire, leaving nothing
n the stockholders by the sale coult
realize 33 1-3 cents on the dollar
Now runrors are In circulation, i'm
peaching the sincerity of some Of thu
directors. It is charged that the d.
rectors may have been misled by loca
parties into turning down the plan O
the Tylees. Late Tuesday afternoon
II was said that suits would be insti
tuted today against the company, bu
the creditors meeting, with their offel
of settlement for one-third Of th'
investment, delayed the threatened
crisis. ..,A
DETAILS OF ORGANIZATION.
The Structural Steel Car Co.. is in
corporated for $500,00O, of whicl
about one-half has been paid in. Thi
stock, about $240, 900, has been heavil.
assessed. Three of the principal stock
holders are William Wagner, IL. A
Cavnah and w. j. Steele. The latte
Is said to be the heaviest stockholder
The company was organized to man
ufacture structural steel cars cars un
der the patents Of W. H. Woodcock
Cars were to be sold for $1,000 each
The plant has a capacity Of 30 car
daily. Running expenses when tn
plant would be working full capacit.
were estimated at about $4,000 pc
day. Immediately following the con
struction of the plant difficulties wer
encountered.
Contractors Casteel and Devault VIII
constructed the plant, have liens upol
II. Besides this. w. II. Woodcock VIII
has during the recent difficulties beel
an important party in the company
affairs, holds clans for unpaid salar
and va,uable nat ent rights. rtG
$4,000 NEEDED AT ONCE.
The following erG the conditions, Il
brief, which c. M. Howe of The Tylec
would have encountered in relinan' In
tho plant: About $40 900 Is require
To nay off all debts and leave tie plan
: ready to begin. operations, 1t Is. est
mated that bond Notation Or add
eional stock issue q 100000 Y necs'