The Savannah morning news., 1903-08-19
CHANGES IN Voc. co.
MADE NECESSARY BY DEAL TO
SECURE WORKING CAPITAL.
DIVIDEND is SUSPENDED.
OLD DIRECTORS OUT TO MAKE
WAY FOR NEW INTEREST,".

statement Explaining COmpany's
Condition Made to Stockholders.
Lays Trouble to Fnct That Bills
Receivable Could Not he Dis
counted This Year-AppIicatiOn
Made to j. p. Morgan 4 Co. Who
Have Organized a Syndicate to
Provide Needed CapitaI-PIans for
Permanent Cash working Capital
to lie Devised.
Richmond, Va, Aug. 1S.-The Vir-
glnia-C Carolina Chemical Company di-
rectors decided this afternoon to pass
the dividend on the common stock.
The following statement was issued:
ITO the stockholders of the Virginia
Carolina Chemical Company: Your
board of directors desire to say that
for the year ending June Is, 1908, the
Virginia. Carolina Chemical Company
actually sold and delivered 9S2, GOO tons
of fertilizer, being an increase of 20
per cent. over its business of the pre-
ceding 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 the transportation.
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 therefor by customers
This additional capital has heretofore
counting of the company's bills re-
ceivable, of which, on July Is, 1903, the
company had on hand over $4,000. 600
averaging about 81 900 each and over
81 600 of accounts receivable con-
vertible into bills.
Choicest Paper in south.
These bills have always been con-
sidered the choicest paper issued in
the South, and as such have been
readily available for current funds In
the unusual financial situation which
existed this year this course Of business
has become unpracticable and 1t was
accordingly necessary that your COM
pany should provide itself with suffi-
cient additional cash capital to carry
its business over TO the fall months,
when It's bills receivable are collected.
Your company, therefore, applied to
Messrs. ]. p. Morgan q Co. of New
York, who have organized a syndicate
including Messrs. Blair & Co., the
First National Bank, the National City
Bank, the Morton Trust Company, the
National Park Bank and the Bank of
America, to advance to the company
IN fba
twelve months as required, amounts
which together with its other re-
sources, your directors deem will be
amtply sufficient for all your COM
pany's needs.
On Unsecured Notes.
such advances will be made upon
the unsecured notes of your company.
leaving your company's assets in its
treasury free for use in it's current busi-
ness as heretofore, thus indicating the
high credit which 1t enjoys among the
leading bankers.
Although the company now has
more than $S500,000 cash working capi-
tai, the business Offering each year has
increased to such an extent that your
directors deem 1t essential that some
plan should be devised for the perma-
nent provision of additional cash work.
ing capital, so that the necessity for
during certain months of the year may
be avoided
1T is expected that through the CO.
operation of the bankers above mem
toned, some adequate plan will be de-
vised at an early date to accomplish
this purpose. In the meantime, until
such permanent arrangements shall
have been completed, your directors
have thought it best to suspend the
payment of the dividend upon the COM
mon stock.
Signed Virginia Carolina Chemi-
cal Company, by s. T. Morgan, Presi-
dent"
Changes in Board.
w. B. Chisholm of Charleston, S. c..
retlres from the directorate and is sue
ceeded by Edward r. Stotesbury menu
Der of the. firm of Messrs. Drexel, Nor
gan & Co, Philadelphia, Pa. Director
F. B. Dancy of Atlanta, also retires
and is succeeded by Norman S. Mel
drim, president of the Securities Com
pany Of New York, New York city.
f. I. Stotesbury, Samuel Spencer and
Henry Walters form a new Finance
Committee.
The following directors were present
at to-day's meeting: e. 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. Medium.
the last two just elected.
Absent: j. u. Duke and Samuel
Spencer.