New-York tribune., 1909-07-04
MILLIKEN BROS. PLAN
cREDITORS FAVOR IT.
c4o.l.bolders Also Getting Into Lane
on Reorganization.

.,- ,re reorsanization Of the corpora
1T,l1,te, Brothers, steel manufacturers 1or-
,.+5 hv the creditors conlnh1Iee' % VIM
- II NfcCarrah IS chairman was ilaue puDii-
.,ss.ersav The plan, the essehual le0'Lies -
-, - -,1b1ished in The Tribune on June -
"ili1,- ,,-rred l,y creditors representing 20 per
= % tbe entire debt and by 50 per CehI q
,.r,o-7a-s Il Is the intention to operate
~. the fabricating plant after ne collldiH H's
-, ,sken out Of the hands OF the receivers d
a, ,-7i+fcrs are not deemed 20 warrant an al
-. =, raise at this time an amount ot money
- -, ,-,--s-o the steel mill also The opera
-. - -f7- rqhrfcatinC plant, il Is believed VIII
- -ha oo,rpany 10 pay its fixed charges and
.s7es and earn . surplus. thus preserving uie oI-
s,rf-a-ion and ra value Of the pl2n' a eoih7
concern. o--e-, .,.,,.,5i-
.- x2 aao sso . rer cent first mortgage convertible
So 7-itr interest Of SaOSs5. accrued Up TO April
>, The unsecured claims OF general creators
amount 70 ssas0fS and the disputed Gains 10
about ssaA ao Mechanics Hens n the amount ol
IS. aas have been fled against the oompan!' IN
,1,5r,e the & ooocao preferred and $2S""' com
- e+oog, the total liabilities are SZa7l.S@4 Inc
.,--op7n7a+e assets as Of April = are gwen aS
t-52Sa5e the principal item being The land- nQlu-
,--s rl47- and equipment on Staten lsla'' Nal-eu
81 So 222S5 Cash on hand and on deposit ailoU'''S
- yzS2es and accounts 'eoeiVaoe aF' gwen
so7s12s s-.-
Tro -eo-zanizstion plan leaves the present hFs'
-,o--rara bonds r1ndis-urbe3- PAYS the oialnns d"
--o-77zso-r notes - IN bonds. c-fa1es Z ''lli7
.-rs- which shall hold the stock q 0o'n CiaS9eS'
- ,-o,-i5ss for IN issue Of $2o"1po second mort
- "a ss collateral for an issue a short
-, notes On v-hich additional working capl1el *
81 he raised.
Holders = claims against tle COMPANY a'e
1e,ozi- their cleins or before august VIII
The depositary the Bankers Trust COMPANY ian
,re -e,eiprs which are 10 be exchanged Tor Ten
Of e
-ls- becomes operative. Interest At not more than
Z -ar cent II and when earned, Is 10 be paid On
.hese notes which are also 70 he entitled 10 anN
rav-7ent On account Of the principal which the
directors may direct 70 he made and 10 proper
,iors-a parr Of the proceeds Of the capital stock,
,bf0, he voting trustees are authorized TO sci.
The committee reserves the right 20 issue, instead
Of the notes. bonds secured by a mortgage which
F1aH Be subject 70 the frsr mortgage end 20 the
proposed second mortgage
The voting trust which is - run for i've years
unless sooner terminated, Is 70 consist of seven
-ne-7bers-c;ates " Ncliarrah. Arthur a. Fowler
C3zbe~r @ Tho-1e. Edward c. Wallace. Robert C.
Lewis William Nelson Cromwell and Harley ?
wilson. The first four. with John Hubbard. are
The members Of the creditors reorganization COM
r1fttee
II * believed by the committee that the reor-
gsnized company viii begin business with sufficient
quick assets TO operate the fsbrcatirg plant prof
itably. L may be necessary. however, to provide
about $4,000 additional working capital and for
this purpose i Is planned 10 create an issue Of
s2enoa9 second mortgage bonds The committee
expects TO raise the $4,000 BY an issue OF short
term notes. with The bonds as collateral, unless
farorsb bic sale can be made Of part or all Of the
honds
The corporation II NIHt7en Brothers failed on
June u. 1sa7. The primary cause Of the failure
lack cE working capital, due 10 the money
market strnEencv az the time and 10 the fact that
the steel plant had cost about S2.0o'' more than
had he-a estimated. To provide funds for that
Plant che company early in 1906 1ozred an issue CT
s2aaag] per cent bonds. which ara secured by
frst mortgage on the properly al Mariners Har-
Dor. Staten Island. where are both The steel NIL
and The fabr5cstLug plant. The total cost OF the
stee mil. hoverer. proved TO DC nearly S5o00.o'o.
and diversion o. funds from other sources TO meet
ne additional necessary expenditure resulted IN
shortage OF working capital
TIE RECEIVERS. :. Van Vechten Oicott, William I.
Ward and august Eeckscher, who were appointed
ty Judge Holt On June =. 1857. have operated the
Plant q 2 profit. Under instructions from the
court they ceased or April L last 70 take new
business. although they were permitted % carry
oUt the contracts already on hand
Interest ~ tne bonds has been paid throughout
re receiversfir. and the receivers in addition 10
meeting the fixed charges have accumulated
fund II bank of more than S5.oGr1. besides main
tanning the goodwill and prestige Of the company.