Evening journal., 1904-08-11

1901.
The announcement Of the condition Of
affairs of The Diamond state steel
Company although not totally unex-
pectei. came as surprise to many
persons in the city and there are yet
many who are confident that the az
fairs of the company will be adjusted
satisfactorily.
In an interview with Ward & Gray
who are counsel for The Diamond State
Steel Company. the attorneys say:
"The company will oppose any adju-
dicauon in bankruptcy. and expects TO
be able to establish at the hearing that
/ it is not insolvent within the definition
OF the bankruptcy law.
For several weeks the management
of The Diamond State Steel Company
has been endeavoring to liquidate It's
affairs by such working up of it's raw
material as would put it la funds to
/ pay every creditor In fun.
Had Ii been permitted by certain
of its creditors to do this without legal
I embarrassment, the course Of the man
agement would have resulted in "A set
tlement In fun with every creditor
/ leaving the corporation i'm possession Of
/ very considerable surplus.
Upon having the company's inten-
tion explained to them the greater
number of the creditors were willing
/ to cooperate so far as not TO harass
the company with suits or executions
The Diamond State Steel Company is
one Of the most important industries In
Delaware. II has hve nfty-ton OPEN
hearth furnaces. and departments FOR
specialties such as spikes horse shoes,
nuts and bolts. The Philadelphia office
is at Broad and Chestnut streets.
| The corporation is one of the many
unfortunate enterprises foatcd in Phila-
delphia 1t was promoted by Edward B.
Smith & Co, 9during the boom era OF
1893. 1t leased the Diamond State Iror
Company, an apparently prosperous con
Germ on the 100000 stock Of the iroI
/ corporation it guaranteed 4 per cent.
; year.
: The new steel company was capitalize
at 100000 OF this only one-half wa
paid in The par Of each share Of stool
D was SO. Five dollars was paid and th
remainder was subject to cal.
No Dividend Since 1901.
on this stock dividends Of per cent
per annum were paid for two years, max
: ing $4,000 in an. In December 1901, 4
d was announced that the January divi
dend would be passed. None has beer
paid since.
While dividends were being declared thu
company was reorganized and new capi
tai was raised. Shareholders We're aske,
TO pay in 81 % a share. have their stool
made full paid al So and place s375.OO
Z additional cash capita i'm the treasury
besides, +. b. Smith & Co. stated tina
of this sum they paid in S295,000
! For cash and old stock there was the
issued S2,25O000 per cent. preferred stool
and S2.O0O.0O0 common stock. This, wit
a mortgage Of Sl,O0O000 on the old Dia
mon1 State Iron property. brought tn
e total capitalization up to S5,25OOOO. insteal
of S2,500000 which # was when noated d
. 1899 The addition was brought by
= cash payment Of $4,000 and an assess
, ment of an equal amount
The REORGANIZATION was accomplished &
Apr,, 1901. A dividend was paid thre
' months afterward and no dividends hav
= been paid since.
The Directors.
The latest published list of directors q
- the corporation gives the names of Jc
e. seph A. Clark, Edward b. Smith. Henri
Tanall, George Mccall. Edward Vol
. Waiter NJ. Graham, of Philade phia T
. Coleman Dupont. George W. Todd an
e II. r. Wallace Oresident) of Wilmington
George W. Norris. of +. b. Smith & Co
?. resigned as director a few months ago
J, The plan of reorganization in 1901 wa
recommended to shareholders by II. Z
Wallace, Henry TatnaE, Evans r. Dicl
i, Edward Wolf. Walter NJ Gorham Jc
seph S. Clark. Waiter Cope, W. Hinckl
. Smith, w. a. Stern and W. G. Mendir
o hall.
:. Diamond State Steel stock was sod I
the public in 1899. as a s. paid stock, a
e high as SIS a share. In 1901, after reoi
ganization. the new preferred was quote
- at 8 and the common at ia. The con
mon is now quoted at is Of 81 and m