Evening journal. [volume] (Wilmington, Del.) 1888-1932, 1905-01-14
COMMITTEE SCORES
STEEL CO. RECEIVERS
States That Under Proper
Management Concern
Should Make Money

The reorganization committee OF The
Diamond State Steel Company has is
sued letter In answer to the one re-
Gently sent out by James P. winches-
ter and II. T. Wallace, receivers for
the company. The latter in part says:
Wilmington, Del, Jan. 10, 1906.
To the Creditors. Stockholders and
Bondholders OF The Diamond State
Steel Company.
Gentlemen. 1t has been heretofore
supposed that Il was the duty OF the
receivers OF an insolvent corporation to
content themselves with protecting the
property in their charge for the benefit
OF all parties IN interest without at
tempting 10 interfere with any pro-
posed plan of reorganization; but the
receivers OF the Diamond state Steel
Company, who have done nothing
themselves to put the works In opera
ton, have felt called upon to issue a
circular letter I'm reference TO the pro-
posal submitted by the undersigned.
which calls for a word OF reply.
AS month after month has passed,
during which the works have practi-
cally remained idle, there has been a
growing feeling on the part OF the
creditors and stockholders OF the COM
pany, hat something should be done
TO put the property upon a paying
basis. and after informal conferences
among those holding or representing
large amounts OF securities, the UNI
derslgned consented to undertake TO
secure the concerted action OF the
parties in interest.
The letter states that there IL rea-
son TO believe that in less than thirty
days the holders OF a majority OF the
bonds and unsecured claims will have
given their endorsement 10 the COM
mittee. That the concern under proper
management ought 10 be made to earn
money as Il has done IN former years,
and the first object OF the committee
win be 10 get the works In active oper-
alton, the necessary working capital
being already assured to the commit
tee through a plan that will not take
priority over the first mortgage bonds
with this accomplished, and with
fsufncient profits TO pay the salaries and
expenses OF the receivership through
the operation OF the plant. there will
then be time to deal with the more inn
lportant matters. which do not. however
demand immediate solution.
In concluding the letter states;
Finally. Il seems 10 be a choice be-
tween present conditions. with expen-
SEES running at the rate OF several
thousand dollars per month, the entir,
plant standing idle without prospect OF
lanything being done 70 stop disastrou,
depreciation TO the property. on tn,
one hand; and on the other hand, th'
proposed conditions submitted by the
committee, viz: an honest effort to stoI
depreciation, turn the plant into a pro
fitable and going concern, provide To-
the payment OF the past due coupons
on the bonds and the development OF
feasible plan Of reorganization whicl
must be approved at a meeting OF al
parties in interest TO be regularl
called before being contaminated.
: Your committee stands ready &
} consider any suggestions from an
source: but they propose TO bring abou
, results by active work and not by in
active delay while those I'm interest pa,
/ for II through loss, expenses and de
probation. when other mills all owe
the country are crowded with orders a
/ profitable prices.
Respectfully submitted.
II. II. Haines. Chairman,
George W. Todd, Secretary.
Robert Whitaker,
David IT. Ross.
Jacob H. Lewis.