The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1903-09-10
TANGLE IN THE LAKE
SUPERIOR CONSOLIDATED
Company Officials Are Trying to Ward
Off a Receivershin.


PHILADELPHIA, Pa, Sept. 9.-Off-
cials OF the Consolidated Lake Su-
perlor company say they will tomorrow
make a statement covering ali the
phases of the difficulty between the
company and certain stockholders.
vice President Sanborn stated that
counsei Tor the protesting stockholders
mad received the information thew de-
sired. Counsel for the company de-
clared that the attorney for the stock
holders when he visited the office yes
teroay to examine the books was given
all the facts he wanted. He asserted
also that the corporations hooks had
peen removed from this city to Canada
TOUR months ago, when the general
ofnces OF the company were transferred
from Philadelphia to Sault Ste Marie
ana two months before the stockhold-
ers demanded an invest igation of the
accounts. Counsel for the stockhold-
ers' on the other hand, asserts that he
was INFORMED that the books had been
removed after the first demand.
The statement to be issued by the
company, 1t is said, will be made in
anticipation of move looking to the
appointment of a receiver The Off
clais claim that one-half of the money
winch stockholders are trying to re-
cover from the Consolidated Lake SUI
perlor Underwriting Syndicate" is
represented by parties who are not
considered financially responsible at
the present time. Counsel for the corr
poration today made public a cow of
what is termed the last purchase
agreement" 1t is:
, Last purchase agreement included
the purchase of stock in the CONSOLE
GATED Lake Superior company from the
A a1e"nna,, steel oo company. Limited.
10 the amount of $1,978,7O0 was maid
Tor. leaving a balance of $4,O21, 800 due
ana payable in installments as follows:
april l, July 1 and Oct. 1, of 1908, and
Jan. l, April l, July and Oct. /. 1904
me two payments due April / and
July l, 1903, would not aggregate more
than $60O,OO0. At least one-half of this
amount is represented by parties who
are not considered financially resnonsi~
ole at the present time"
Minority stockholders of the oon,no-
ny, headed by e. c. Miller & Co, W.
w. kurtz d Co., and Brice Monges &,
60, bankers, have started a movement
with view of asking for the appoint
ment OF receiver for that concern
Ihey sent out a statement to the
stockholders of the company today. In
which they say:
The management of the ConsoIi-
dated Lake Superior company havin,
refused our just demands, made upon
tnem through counsel, for the names of
the subscribers to the s11.OS8.4 400 CON
tract of subscription to preferred stock
OF the company, upon which the COM
pany report of June 80, 1902. admits
that a balance of $9,239,1OO was then
oue ana unpaid, and having failed also
10 give any reason whatsoever for not
having enforced the payment of said
subscriptions, it is important that i'm
mediate steps should be taken for the
protection of our rights as STOCKHOLM
ers.
AS the best means of accomplishing
the desired result, it is proposed to ap-
ply for the appointment of a receiver
or receivers for the corporation, this
being regarded under the advice of
counsel as the most effective course to
pursue"
The statement asks all stockholders.
who are determined to assert their
rights to ascertain the true financial
status or the company before accept
ing bllndly any proposed scheme of
reorganization" to join in the move
ment for the receiver. The banking
concerns mentioned above represent
S0,O0O,0O0 of the stock of the company.
The Lake Superior company is a Con-
necticut corporation, and the applica-
ton for a receiver will have to he made
in that state. The laws of the state
require that not less than one-tenth
the total capitalization of the company
must assent to the application before
the court can receive it. The Lake
Superior company is capitalized at
$102,000,000.
Vice President Sanborn, of the Con-
solidated Lake Superior, made a long
statement today, in which is set forth
the contention that the books of the
company were not spirited away to
Canada He justifies the removal on
the ground that it was President
Shields first step along the line of
economical policy, and says the re-
moval was made in April last, when the
principal office of the company was
transferred to Sault Ste. Marie, Can
ada.