Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1903-09-24
At PUBLIC SALE.
Consolidated Lake Superior
Co. Is in Hard Shedding.
Its Assets to Be Sold by Creditors,
Oct. !, at New York.
A Plan of Reorganization and Safety
Is on Foot.

New York, Sept. 23.-It was stated
informally. today that the Speyer
Syndicate probably would sell the as
sets Of the Consolidated Lake Superior
co. at auction, Oct. ]. Details as to
terms and conditions will be announced
late:.
The formal circular of Speyer e Co.,
announcing the sale, was given out.
this afternoon. The securities of the
subsidiary companies, held by the Con-
sulidatcd Lake superior Co.. with vari-
Gus notes made by the subsidiary COM
panies in course of the advancement of
moneys on the loan of Speyer E, Co..
these notes endorsed by the Consoli-
dated Co., are to be sold at public
auction at II o'clock noon, Thursday
oct ]. ut 161 broadway. New York
Sjeyer e Co. reserving the right to bid
in the properties offered for sale.
Philadelphia, Pa, Sept. 23.--John S.
Freeman, counsel in this city for the
Consolidated Lake Superior Ca, said,
today, that there is a movement on
foot to save the property.
1t was learned that the plan provides
for new company, capitalized at
from $35, 900. 900 to $4,000, 000 and an as
sesment of So per share. 1t is under
stood that officers of the company are
in communication with financial in
tereets in Canada and New York look
ing to the carrying out of this plan
The stockholders protective commit
tee have approved the proposed plan
of reorganization which they say IS
satisfactory to the interests they repre-
sent.
The Consolidated Lake Superior Co. is
a holding company controlling a large
number of concerns at and near Sault
ste Marie. 1t was organized under the
laws of Connecticut and has Ar author
lied capitalization of $1Y,0OeOOO OF
which sl02 O00, 900 has been Issued. IT IS
estimated that about $70.G00,O00 OF the
stock is held in this city.T6
The troubles of the company became
public matter last December when it
was learned that the cOacern was try
ing to secure a loan to carry on its OPP
Grafton. 1t was maintained by the
management that the business of the
company was profitable. but that mon
cy was needed to carry breathe opera
tons of various plants ands to make
Improvement. After Rpnsiderable
effort. loan Of s. $50, 900 wa negotiated
with Speyer & co of New York. A.F,or
this loan Speyer & Co. took las security
All of the available collaterd3s possessed
bv the Consolidated Lake Superior Co.
This collateral consisted of all the
stock of the various subsidiary plants
and also the mortgages that had been
placed upon them prior to and at the
time the loan was created. The loan
expired, July |. but IN extension of
time vas allowed in order to give the
'lhH7rtrsi OF The company an opportunity
to raise money from the stockholders.
,. A plan WAS formulated to sell bonds
enough to raise $1.50o,00 cash Only a
Quarter of the bonds We're subscribed
for, the plan was declared Il failure and
tho money advanced was refunded. 1t
was then decided to reorganiZc the
company, assess each share of preferred
and common stock S. and the common
stockholders were to receive one share
in n new corporation for every five they
n, id in the old. and the holders of pre-
ferred one share for every two and Il
half they held in the old.
In the meantime complaining stock
holders wanted certain information re-
garding the management of the COM
parry and they went so far as to threaten
legal proceedings. This was followed
bv II movement for a receiver.
Recently matters reached such Il
state that President ChildS of the COM
pany issued an order shutting down all
the company" plants at the 500" with
the exception of the street ear lines.
This action threw ont of employment
about $500 men. 1t is said that about
$500. 900 is owed to laborers of the COM
pany and 81 800, 600 is due To contract
ors and others for construction work.