The Barre daily times. (Barre, Vt.) 1897-1959, 1907-02-06
BLAMEs TRUST COMPANY.
Norcross Bros. Co. of Milford, Mass,
Sends Out Letter.

1NAN0 01S ~fete~As
Placing all she bame for the present
stagnant condition ii affairs At the four
monster quarry plants Of the Milford
pink granite quarries ait the door Of the
Franklin Trust company, the mortgagee,
and virtually accusing The officials OF
that company of conspiring Ia. bring
about the present outlook in order that
tho plants can afterwards be bought for
less than the mortgages thereon, the
Norcross Bros. Go. has sent out letter
in which an interesting history OF the
troubles Of the consolidated company is
included, according to the Milford Daily
News.
The history Is interesting because it
gives the position Of the Norcross ils
terests, which are seeking to have the
smaller creditors fight what looks Ike
a freeze.out of the little men at tre-
mendous cost to the town Of Milford,
through continued idleness Of the plant.
Tine statement that neither the receiver,
the new Or old company, can 90 into
the market to look for work under pres
ent conditions. is surprise because it
was thought that when the plants had
been officially turned back to the re.
ceiyer, that official would be at liberty
to keep them in operation by entering
into contracts and prosecuting the same.
The portion Of the letter bearing up
on the quarry troubles is as follows;
The Milford pink granite quarries were
engaged In the carrying on of d granite
business in general, and Of certain CON
tracts in particular, the principal one
LOT which was the furnishing of a large
Quantity OF cut granite for the Penn
| sylyania terminal station in New York.
The said quarries had issued two series
Of bonds. which were secured BY trust
deeds and mortgages that were held BY
the FranAnn Trust company Of New
York
| In November, 1905, the Franklin Trust
company Brought bin in equity In the
! United States circuit court against the
Milford pink granite quarries. This az.
ton was Ia spite Of the fact that there
We're no unpaid matured obligations Of
the quarries regarding the said mort
cages and bonds. There had been no
defaults IN interest OF sinking fund re,
Iquirements. This bin stopped the credit
OF the company, brought about the re.
from acquiring any new contracts.
Shortly after his appointment by the
court, the receiver found that he could
not raise sufficient money 70 enable him
to carry on the contracts. The Norcross
Brothers Co. and o. d. Norcross, there.
fore, caused to be organized corpora
tion named the Milford Stone company.
This corporation, in the year 1905, ac-
lquired a lease OF the quarries and plants
and ii has now produced the granite f0r
the Pennsylvania station The granite
however, has not been shipped, and It
cannot be shipped until II Is ordered
! forwarded by the Pennsylvania company
! 1t will be some time before the build
ling will be sufficiently advanced 70 be
ready for the granite, and until II BE-
ready the Pennsylvania company viii not
order the shipment made The Milford
Stone company, therefore cannot at this
time complete the contract, and as II
has no power to enter into additional
contracts. the several thousands az men
that have been employed the past year
have been discharged, the fires have been
drawn from the boilers, the plant has
been closed. and things generally are at
! a standstili
4 We believe that the Milford Stone
company has on hand profit in the
1 form OF cash and accounts receivable
During the past year the Milford Stone
company has paid in the form Of rent to
the Franklin Trust company such sums
Las have become due from time TO time
on account Of interest and sinking fund
requirements OF the bonds. There are
lnow outstanding no unpaid matured OBJ
/ legations upon the bonded debt. The
bonded debt consists today Of merely
| the principal and what interest is ae-
cruing on account Of the next coupons
At recent hearing before the United
States circuit court. it became appar-
ent to our counsel that the Franklin
Trust company is DESTROYS Of prolonginp
the litigation 80 that it may, in the end
lforeclose the mortgages and purchase the
quarrics and plant at sum below the
4 face value Of the mortgages. Should
they so purchase the quarries and plant
then it is probable that they would
prove an unsecured claim against the
Milford pink granite quarries, amount
OF the said unsecured claim being The
uinerenee between the purchase price 81
the quarries and plant and the face val
ne OF the mortgages.
With the quarries and plant now idle
and with the Milford pink granite quar-
ries, the receiver and the Milford Stone
company ell unable TO enter the market
for more business, the logical conclusion
appears to be that the condition oil
things that has been brought about by
the Franklin Trust company will, in the
end, necessitate foreclosure
Quite number Of unsecured credi-
tors during the past year have written
MS for information regarding the affairs
at Milford, and perhaps it might be con
sidered as sort Of duty on our part
that we write TO them at this time con.
cerning the present situation, and while
az we have stated Re feel reluctant
about giving any advice regarding the
employment Of counsel, it does appear Ia
| us that the unsecured creditors should