Every evening, Wilmington daily commercial., 1906-06-27
Second EDITION
|NlNOSD STATE STEEL
ThR Movement for Reorganization
Of the Company Started,
LETTER FROM RECEIVERS
Statement Issued by Them to the
Stockholders.
/ |nL OF THE INTERESTS MAY JUN
,tbe Movement Which is Now
on Foot.
f rHE PLAN is AGREEABLE TO ALL
litter FROM RECEIVERS
, Statement Issued by Them to the
Stockholders.
All OF THE INTERESTS MAY JUN
!. the Movement Which is Now
" on Foot.
q The PLAN is AGREEABLE TO ALL

& The PLAN is AGREEABLE TO ALL
1.oes P. Winchester and Howard
'W.iia6s. receivers of the Diamond
5.... steel Co., have sent a notice
90 .y,rv stockholder of the company
" consented to the taking over Of
W. olant and property recently by
,arties from New YORK 1he plan to
tisnose Of the plant to the New York
syndicate failed, 1t Is SAID, because OF
81 ,be failure Of the parties who made the
n,onosition TO DO their part.
The notice sent out reads as follows;
June 2Jth, 1896.
r, the Stockholders OF the Diamond
Go Steel Co. Referring to your
80 Of stock Of the Diamond State
s,eel Co.. which we're assigned by you
:" tbe Undersigned for the purpose
" carving out a plan for the taking
aver Of the plant and property of the
n,snond htlte Steel Co., by q new
somnanv which was proposed to be or
s.nized. would say for your informa-
sson that although the undersig
e,mnlled with all the conditions
wbieb we're required Of them by the
r,rties who made this proposition,
absn We had completed our work and
noti6ed them that we we're ready for
10 oonsummation Of the plan, they
lied % do their part, and has a
,ult the plan failed.
The committee Of hondholders Of the
company recently applied to the
I'niied States Court here for an order
directing the receivers to sell the real
and personal property Of the company,
and II is expected that such an orcer
will be issued promptly. Before the
actual sale Of the property is made, ~
d hoped that a plan may be arranged
whereby the bondholders, creditors
and stockholders Of the company, or
such Of them as desire TO JOIN in the
movement, will have an opportunity
b reorganize the company in their own
interest and it is expected that the
particulars Of this plan will be sent to
TIE stockholders and others at an early
date.
Kindly return to US at once the re-
eirt which we sent you for your
sock. and Immediately upon receipt of
nme we will forward the shares of
ltook 10 you.
We exceedingly regret that the pro-
posed plan, Under which these shares
we're deposited { US, has failed, and
We can assure you Jnat our best efforts
we're directed toward carrying it out,
but the contracting parties failed to
perform their part after considerable
delay. Respectfully,
James p Winchester,
Howard I, Wallace.
An item in a Chester paper thi.
morning intimated that a deal hao
Practically been Effected whereby ar.
nngements had been consummated fol
the Chapman Coal, Coke & Iron Co.
Of West Virginia to effect a mergei
With the Iidewater Steel Co. of Ches
Ter and the Diamond State Steel Co.
Of this city. Such a deal, it is said,
Il ever thought Of, was never carried
oat
Howard I. Wallace, former president
Of the Diamond State Co. and one o
The receivers, when asked about tn
matter this morning made the follow
ing statement;
Last year certain parties in New
iors made a deal agreeing to take owe
iae property on a basis which son
llued the bonds Of the company ant
pld Of the creditors and gave tn
stockholders in the Diamond Stat
e,eel Co. smaller amount of stool
70 the new company for their holding
ID the old company.
1t was required of US that We &c
le majority Of the bondholders an
!le stockholders to assent to the plan
We accompmlished what was require
u.s. which took considerable tim
n account of the great number {
'otn, which was about /, 500.
When the work was accomplishe
.ao the parties were notified TO pei
loim their part Of the transaction
V we're informed that there hs
seen some disagreement anon
le syndicate in reference
sler matters and as a result SON
laa dropped, but it was learned tbs
Iuen we're ready to take their places
was finally apparent that the pa
PES oid not intend TO carry out the
sIeement. Notice was then sent
..ea stockholders as had deposite
noek with Mr.. Winchester and mysel
;l the purpose of carrying out tn
Es9' Ihe notice advised such stool
-N4eis OF the condition OF the anal
sla informed them that the receive
ssfe ready to return the stock whiC
1ey -i held for that purpose.
ms had no bearing whatev
.poa the Chapman deal referred to
ss papsis from time to time ar
salcn never progressed so far that al
nade.
As matters now stand it is e
psSled the United States court W
wuer public sale of the property al
also anticipate that before SUI
,.le is made a plan will be formed al
gpoftunity offered for the prese
s..5ls9nolders, creditors and stoc
solueTs Of the company to join in
organization of the company in the
~ interests. Such a plan Is M
pg considered by parties in inters
~ is expected announcement W
made Of IL at an early date. "
/ L0uFf A.. anI..a -