The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-08-08

Land Title and Trust Company, as trustees
of the Asphalt Company Of America, was
furnished with a printed circular letter
issued by the National Asphalt Company
and addressed TO the stockholders OF the
Asphalt Company OF America. This pro-
posed the acquisition by the National OF
the shares Of the Asphalt Company upon a
basis therein stated. and proposing. in the
event Of acceptance Of the proposal, the
deposit with the Land Title and Trust Com
pany, as trustee Of a fund or investments
thereof 20 the amount Of 5000 600 al addi-
sional security for the $50 600 900 Of collateral
SIS Of the Asphalt Company. Other pro-
posals were also included.
Al this point the whole financial scheme
Of the Asphalt Trust becomes so hope
lessly and inextricably tangled and con-
fused a. 70 present little interest and no
hope Of comprehension by any except
special students Of the case. and even many
OF them have given ii up in hopeless de-
SPAR. For our purposes here it IL enough
to say that the Mack gunboat captured the
Asphalt Company frigste. the lesser alb
sorbed the greater, and the following year.
1901, saw the two trusts merged into a
single organization under the original title
OF the smaller OF the two, the National
Asphalt Company Mr. Mack had dubbed
his way into the camp Of his adversaries.
He came, saw and conquered
The combination thus effected went into
operation a, the close of the year 1900.
The securities issued and held either by
investors or in the hands Of the promoters,
stood, in the fall of 1900. as follows:
Gold collateral Is O: the Aspaa,, Com
pany OF America .... ........... $50. 900 900
Preferred stock OF the National Asphalt
Company. ..... .... ....... l0.o0o.Uo
Common s.ock o: the Na,lona. -,sphal,
Company. . I2ooo 900
In addition 20 this, there was the s. oo0, 600
in per cent. bonds Of the National, which.
under the new arrangement. were 10 be
exchanged for the $50 go 900 Of stock in the
Asphalt Company Of America. The total
Of the actual capitalization thus provided
for the new company was sjs 900 900
According 10 the official reports Of the
business Of these companies for the year
1900, prior 70 their combination. the ac-
counts stood thus
ASPHALT COMPANY or AMERICA.
'FRONT.' AID loss account
Oene!',. ...,..... .........-.. G,sl6, 1000
NATIONAL ASPHALT COMPANY.
Earnings May - 10 Dec. 81 ........... SOo.eii.7s
or, in other words, with a total capital Of
SIS 900 900 the losses for the year were
s. 800 600. Yet the public was assured by
officers Of the companies that all was well
and that profits were being made on the
business. The actual figures. however,
were not published Comment 10 unneces-
sary.
On Sept 3, 1901, Mr.. John W Mack, IN
doubtedly speaking for his associates as
well as for himself said, in letter written
10 the North American Of Philadelphia:
The interest (for 1900 on the $50 900
OF Asphalt SIS was earned and paid That
it was paid is shown by the accounts Of the
Land Title and Trust Company That it
was financed and paid our of the capital
and not earned is shown by the report Of
the Audit Company, whose statement re-
veals the net earnings of the company for
tha, year as Jess than 20 per cent. of the
interest charge Comment upon this seems
also unnecessary