The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1911-03-29
HECEVER NAMED
FOR SALT CONCERN
Course Decided on After Many At
tempts To Finance Detroit
Company Fail.

The Security Trust Co., trustee UNI
der the mortgage securing the 81 .000,-
900 bond issue Of the Detroit Salt Co.,
asked for receiver for this concern
on behalf of the bondholders In the
circuit court, Tuesday morning. Judge
Alfred j. Murphy appointed the Se-
curity Trust Co. receiver for the con-
Germ.
The application for a receivership
for the Detroit Salt Co. Is a result OF
the passing OF the interest coupons
que the first OF January. The interest
due upon this date amounted TO $780,
600 and the total Indebtedness at that
time amounted to about $4,000. Up
10 the day that the interest coupons
were due, II was expected that the
financial arrangement which had been
made would be carried through and
that the company would be able to
meet the obligation. At the last mo-
ment, however. some OF the impor-
tant interests failed TO come forward
with the money that was expected.
Ind the interest had 10 be passed. IL
was thought at the time that the In
|ternational Salt Co., commonly known
as the salt trust, was responsible for
the embarrassment, having induced
some OF the parties TO the financial
plan to withdraw
Since that time Secretary A. K.
Jennings has been making strenuous
efforts to secure the necessary cap
|ital, but he has not been successful
and the receivership was decided
upon as the best method OF protecting
the money that has been put into the
property.
1T Is purely protective measure"
said Mr.. Jennings. plans are already
under consideration for reorganiza-
|tion, and those closest to the manage
ment believe that everything will be
worked out In good shape. We will
keep right on operating the plant un-
der the receivership and all the con-
tracts we have will be completed The
company is now producing about TO-.
1000 tons OF rock-salt per month and
about $4,000 barrels of fine salt and
Everything at the mine Is In good
condition
"The trouble was that we originally
estimated the most OF the property de-
'veloped TO the point OF production at
$500, 900 and went ahead In the belief
that the capital that We had secured
would be amply sufficient. Actually
the development of the property has
cost 81 100000. and all this money has
been secured except the present in
|debtedness OF about $4,000. includ-
tng interest coupons.
I'VE have had the plans for financ-
|ing the company practically completed
three different times within the past
five months, but just as we were
ready to close things up, some large
subscriber backed out, and as all the
subscriptions were conditioned upon
|the raising of the entire amount the
whole deal fell through. The receiv-
|ership seems the only solution to the
problem, and / believe that re-or.
|ganization plan will be completed
within short time that will put the
Detroit Salt Co. on a sound basis"
The last plan to be advanced, and
lone that looked as II II would go
Through was from an operating COM
|pany to lease the plan and operate 1t,
the operating company subscribing
|enough to pay off the immediate re-
|quirements and guaranteeing the in
|terest on the bonds. When this deal
fell through the receivership was con-
|sidered the last resort.