New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-12-16
LAKE SUPERIOR CO. SALE.
BID IN BY SPEYER & co.
Pay s4.500.000 for Collateral for
LOan-Pr0tests Made.

TIE assets OF the Consolidated Lake Superior
Company which were pledged with Speyer & Co
collateral TO- a loan 81 S5o50o0o were sold ~
suction by Adrian q. Muller 4 Son YESTERDAY "a
the Real Estate saiesroorl. at No Is0 Broadwa
The assets were bid 81 by Edward &. Henderson
c, Guthrie. Crsysth q Henderson. representing
speyer Co. The price paid was SiG0006o AZ
soon as The list OF securities he sold had been
read objections TO the sale were submitted nv a
lawyer representing Frances g. Dawson. Of This
city, owner OF ie0 shares Of Lake Superior common
stock and afty shares or preferred. on the ground
that The Spcyev lc1r lad beer contracted without
the knowledge OF consent OF the STOCKHOLDERS. and
Wss therefore Illegal. also b- TIC Stanley Electric
NanufEcturirS Company. OF Pittsfield. Mass. which
recently fled mechanics lien for SSa@F Tor ma
chnerr, another ny the iegui r~uresentauVe n the
receiver. }. c. Carruth, Of Philadelphia. ana suli
another ny Foley Brothers. Porter 4 Wha!en. 81
Philadelphia. vho claim 20 have lien on the
Algoma and Hudson Bay Pathway Company ore OF
tho Lake SUpesiOT's constituent companies
Just before the auctionecr asked for bids notice
was served on him that su!t had been begun In the
Supreme Court OF this State 10 set aside tho sale
After ;he notices had Leen read the property was
offered fo- sale. SpCyc- & Co were the only bid
GERS. James speyer of the firm Of Speyer & Co.
who was present at the sale with Charles II
Tweed. one # his partners. said after the sale
We have bought in the securities for $4,000 and
have no comment 70 make Messrs. SpeyeF and
Tweed were asked what interest, II any the United
States Steel Corporation might have from now on
n the property They answered that TO The best
q their knowledge the steel corporation would
have nc interest whatever.
Among Others who present at the sale were
Francis II. ClergCe, promoter or The Consolidated
Lake Superior Company. and at time its presi-
dent; c. L. Orvis, a director or the company. and
Mr.. Hay. director OF the imperial Bank OF Can
ada.
Later IN the day Speyer d 90 issued the follow
ing statement:
speyor & co. announce that, having purchased
Tor the participants an the advances under me
15s loan to the Consolidated Lake Superior Com
Iany. which matured june ." l.,5. they are Re-
CuesIing authorize from the participants In The
loan to admit the Consolidated Lake Superior Com
g,sny's stockholders - an interest ~ ne haUGa-
lion Of the security or fhe TeorEa ilizalon o. the
properties il is anticipated that The stockholders
contribution would be about s. per share.
John r. Dos Passes. Of counsel for the reor-
laEizarion committee Of the Consolidated Lake
Superior Company, gave out statement late yes
leT1ay afternoon saying.
From information impaired to the counsel they
eKtension Of three weeks had been granted. the
and wasteful contest avoided Having exhausted
All other means. they this morning in behalf o.
lowing letter TO and served the same upon Speyer
LETTER TO sPEYER & CO
n behalf Of the reorganization committee We are
BHd damaging expense which viii result from a
rocted win the Consolidated Lake superior COM
pany- in Canada We are, therefore. ready 10 aid in
arisen. and which Will project the interests fairly
and houorahly. Of MesSrs Speyer & Co and Of all
Lake Superior Company With that end in view, if
you viii inform i'm writing that the rights the
creditors and the stockholders viii be projected ~
YOU We arc perfectly Wiling 10 oln Eou IN any just
plan which you may formulate for the recoustruc-
lion and reorganization ~ this company We also
beg to call your attention To the fact that before
submitted 10 YOUR counsel and they We're in
Vite6 alter amend The plan. or % substitute
smother which fair. and that received from
ThoSe gentlemen several suggestions which are
Corporated i'm the reorganization agreement sIbse-
cUerflE adopted. T. +. EOTIERMEI. II.
JOSEPH DE +. JI-NkTN.
JOHN r. DOS PASSOS.
Counsel Tor REORGANIZATION Committee.
After having received d definite refusal from
1eress n the stockholders and creditors suit was
begun by counsel for the receiver against the frm
r SPeyer Co TO- hav" the pledge agreement.
unceT which 1ne sale Is 10 take place. declared
II is alleged That to carry out the real intention
of the parties. the agreement must he reformed
and cannot he interpreted except a. a preliminary
70 reorganization OF the company. in which all Of
the parties interest ed including creditors and stock
holders, shall have chance TO participate
The blll TalSes several delicate and intrinsic
questions 81 law which must be fought aud
all parties
notwithstanding the sale. counsel do not propose
70 abandon their efforts to bring about successful
reorganization
IN reply 10 one OF the allegations contained in
Mr. Dos Passoss menJ, d member OF the firm
OF Speyer co. said; when the loan Of s. G5Go00
was mace We dld NOT agree 10 furnish
organization plan. The contract was drawn by
attorneys Tor the Speyer syndicate and the Con-
solcatcd Lake superior Company. and was in The
nature Of loan pure and simple"
The Consolidated Lake Superior Company has an
authorized capital Of ST7G0O00. Of which $50 g001
is common stock and So 10000 is : per cent non
cumulative preferred stock Nearly all Of the
authorized stock Of each class has been issued.