New-York tribune., 1909-02-18
SPLIT In ICE COMPANY
FIGHT ON STOCK ISSUE.
Faction asserts Knickerbocker Trust
Company Would Get Too Much.

It was learned yesterday that the principal rea-
why the special meeting Of the stockholders Of
the American les Company called for February II
to ratify issue of 100000 per cent cumulative
preferred stock and a like amount Of per cent
bonds had been postponed for one week was that
objection had been made to the proposed financing
by the outstanding stockholders These are the
stockholders who never exchanged their holdings
for those of the American Ice Securities Company
which organized in 1905 holding company
of the American Ice Company, and has acquired
all but 1892 600 the latter concerns outstanding
s23.s7L1oo common stock and all except s58l2oo OF
its outstanding S14 200 preferred stock.
At the meeting of the stockholders last Thursday
Samuel J. Randall. a lawyer of Philadelphia, aP-
peared for the opposing stockholders, who are
headed by George B. Wilson, and strenuouslE op-
posed the ratification of the proposed stock and
bond issues As a result Of his objections it was
decided adjourn the meeting until to-day In
the time negotiations have been going on be-
tween the company and the opposing stockholders
According to of the latter, however, II Is still
their intention TO fight the proposed financing.
and lively time IS expected at the meeting to-day.
The opposing stockholders have retained the law
firm of McDermott & Enright. of No. 25a Wash
ington street, Jersey City associate counsel with
Mr. Randall. to be represented by lawyers Of
that state. the company being New Jersey cor
poration. in hey find 1t necessary to take legal
steps
In a circular to the stockholders dated January
80 last, Wesley NJ Oler, president of the American
Ice Company. said that the additional capital
to provide for bills payable amounting to 000
and other debts aggregating over 100000, and for
working capital One of the opposing stockholders
said yesterday that what he and his associates
wanted to know how this floating debt had
accumulated in two years. I'm a statement issued
on December Is, 1906" he added. President Oler
said that the company had bills payable
floating debt CT any kind, and that it had ample
working capital What know is. how
this debt has accumulated IN the time. The
directors say that 1t is because the company has
been paying dividends when it was not in con-
dtiOn to do so, but Mr., Oler has always said that
the company was in good condition Now, how
ever, he asks for loan the ground that 1t has
several large bills pay and money with which
10 pay them.
THE largest sum in his list IS bills payable
amounting to S1.815.OO0. Now, eli but $50,000 OF
this amount is due the Knckerbocker Trust Com
pany which the holder Of these notes has got
practical control OF the company Some OF the di-
rectors OF the ice company also directors Of the
Knickerbocker Trust Company. and under the
financial plan proposed the 100000 bonds to
be underwrtteu by syndicate consisting OF Will
lam A Tucker. G. L Bossevain and Franklin y.
Brown, all directors OF the Knickerbocker Trust
Company. and. with the exception Of Mr.. Brown,
also directors OF the American Ice Securities Com
pany. The syndicate is to receive commission OF
. per for underwriting the issue. and in case
of the stockholders subscri0es this viii amount
$3.50 900. and it viii get the bonds at So. As the
kuickerbocker Trust Company holds notes Of the
fee company TO the amount OF approximately 81
300 900. this means that It viii get In the neigh
borhood 81. 500 900 OF gt-edged bonds for these
notes. on the other hand. II the stockholders sub
scribe for the bonds. the trust company will get
cash for its notes. I'm either case the PROPOSE
tion is a good for the trust company but what
we want to find out is. whether II is good thing
for the stockholders OF the ice company and Just
how the latter concern came to be heavily in the
trust company's debt"
He added that the opposing stockholders also
hoped to bring about change OF management in
the company. and pointed out that last year the
company sold 100000 worth OF fee and yet had
money.
director OF the American Ice Securities Com
pany who is also director OF the HnIckerbocker
Trust Company when asked about the objection 70
the financial plan Of the operating company that
had developed, particularly with regard 10 the
Knickerbocker Trust Company's part Of it. said
that the latter company had been vey lenient with
tho ice company and that II the stockholders or
the ice company refused ratify the bond issue
the trust company was IN a position to foreclose
OF, It's notes. as they amply secured
In regard TO the three directors who form the
underwriting svndicate he said that $4,000 was a
very small amount for them receive for lending
their names TO such an enterprise Speaking OF the
intention Of the opposition stockholders to try 10
bring about a change in the management OF the
American leo Company. he said that when its
finances had been arranged Il was probable that
the directors would make some changes in the
9ernant Of the company that would improve II
and make It more effective. What these changes
7rays likely 10 be he declined to state.