New-York tribune., 1906-07-17
ALLIS-CHALMERS BONDS.
Neso Issue ApproUed Despite the
OpDosition of Minority.

At the special meeting In Jersey City yesterday
OF stockholders Of the Allis-C Chalmers Company tne
proposition to authorize the issue OF SlSOoOOoo OF
bonds was approved. Much Of the time OF the
meeting was taken up in discussion OF substitute
resolution. offered by Frederick w. Kelsey. ad-
journng action the proposed bond issue until the
annual meeting OF the company in September. and
directing the president to appoint committee OF
five preferred shareholders. 1.-TWO Of the members
J to be selected from those not identified with the
promotion or past present management 70 IN
auire into the bond issue and report at the annual
meeting.
In addition TO Mr.. Kelsey. James WeltOn. F. III.
Smyth. James A. Trowbridge and c. E. Kissam ad-
vocated the adoption of the substitute resolution
urging that justice to the body Of the preferred
shareholders demanded that the matter OF the Oond
issue be inquired into. and that the companys IN
terests would not be prejudiced by the postpone
ment for two months. until the annual meeting. or
action the bond proposal.
Some of the speakers also sought information as
to what had become of the s1OGOOOO of cash capital
with which tho corporation began business In 1901
The opposition which developed to the bond prof.
ect may result in the formation of stockholders
protective committee.
Mr.. Kelsey, in speaking to his resolution. said
it not his purpose to speak in disparasemenf
either of the management of the company He
thought however. that these were not the tines
for authorizing hasty proceedings, apparently all
''cut and dried such an important question as
the involved in the proposed bond issue, and
relegat1ng II seemed TO him. so Iar 10 tIls rear
the prior rights which the preferred stockholders
now possessed under the bylaws and charter or
the corporation. He deprecated hasty action also.
because many of the stockholders were not pre-
pared to say at the moment. without further
information whether they would join with the syn
dicate in purchasing OF the bonds. as Judge
Gary had proposed. He believed also that the
adoption OF such a resolution as that offered by
himself would strengthen credit of the COM
pany with the public and the bankers and with
the stockholders themselves.
Mr. Kelsey also called attention TO the meagrs
reports heretofore issued by the company. and
urged that the stockholders were entitled to more
information as to certain items of expenditure than
was given them.
Ex-Judge E. H. Gary. who presided at the meet
ing said that the presentment made by Mr. Kelsey
was so candid and fair that under ordinary crcum-
stances he believed that such resolution as advo-
Gated by the minority stockholders should prevail.
and but for the exgences Of the present situation
related to the floating Indebtedness of the company
he would himself favor the resolution He then
asked that the substitute resolution be withdrawn,
but the request was not acceded TO. and the sub
stitute voted down.
The resolution authorizing the bond issue was
adopted by vote of $4,000 shares of the preferred
stock out Of the 1s1 800 outstanding. little more
than the required IS per cent There were present
at the meeting five Of the seven members OF the
committee which had drafted the bond issue plan
Judee Gary Cornelius Vanderbilt, T. D. Adams
Mark r Cox and Charles Allis William A Read
and James H. Eckels the other members OF
this committee - - ,,r,s.--aa
stockholders $12OOOOOO of the new bonds az ~ ana
accrued interest The remaining MAJ $yii9 $figg svndi IL
cate headed by Shearson, Hammn q Co. Will taHe
any part Of the 69nqs wnc e may sompany mTS w
has S11. 100000 Of orders on haho.