The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1912-01-01
BANKERS FINANCE
LUMBER COMBINE

/ SEATTLE, December 15.-Henry J.
Pierce of Spokane. who plans merger
of cargo mills in Oregon and Washing
ton, having a capacity of more than
so per cent of the total output of saw
mills at tluewater, announced today
that he will finance the consolidation
scheme through a large New York
banking house.
/ Mr.. Pierce, who has just returned
from New York and Washington, re-
Gently laid before Attorney General
Wick rsham the draft of articles of in
corporation for the Pacific Coast Lum-
Der Company, the proposed merger
corporation, and asked for an official
ruling on its legal status. On the
ground that if his Office established
the precedent of guaranteeing the le-
gality of new corporations, the attor-
ney general would be besieged by thou
sands of similar petitioners, ATTORNEY
General Wickersham refused to give
an opinion on the coast company.
A conference with the more promi-
nent Gray's Harbor, Willapa Harbor
and Puget Sound lumbermen interest
ed in the merger was held by Mr.
Pierce in Tacoma yesterday and the
details of his Eastern negotiations
were laid before them. The millmen
approved the plans of Mr.. Pierce. a
similar conference will be held in
Portland early next week with the
millmen of Oregon
eaekers Big Firm.
Pierces hackers are the New York
banking house of Ladenburg, Thai
mann & Co., who, with the City Ma
tional Bank, recently financed Santo
Domingo and who for years have been
a controlling factor in the San Fran
cisco and Pittsburg street railway sys
TENS.
Although Attorney General Wicker
sham refused to give an opinion on ths
coast companies. the interview mus
have been satisfactory to Mr.. Pierce
and to ex-United States Senator S. II
Piles, his attorney, as Is indicated by
the fact that Immediately thereafter
Mr.. Pierce concluded his financial ar
rangements in New York.
It is probable few changes In I'M
plan of organization will be made as
result of Mr.. Pierce's Eastern arrange
ments. The original options given b
millmen on their plants, timber hold
ings and lumber fleets called for
> comparatively small outlay of none
beyond the amount necessary to tax
up outstanding obligations and carr
= on the business of the merger con
pany. BY the new arrangement wit
Eastern fnanciers big cash payment
in purchases of plants will be made
'' those millmen seeking it.
60 Per Cent Represented.
The first draft of the merger agre
Il ment carried with it a proviso that NJ
loss tndn ~ OF % per S'HN VI ~
s. pacity OF the Coast mills should
J. represented in the company The BAN
y ing arrangements by Mr.. Pierce pc
e nit minimum of so per cent, thoua
e. il is claimed by the Spokane promote
n that his agreements with millmen l
d dictate that more than 90 per cent
D. the mills will be represented.
n A deal for timber SUFFICIENT to qua
antee the 16 years supply which Il
j. merger company wants to have
n sight before starting business, is und
s. way and may be brought to head b
al fore the first of the year.
e Mr. Pierce denied today that al
railroad corporation was interested
the merger plan either as stockhold
s. or bondholder AS negotiations f
Il the purchase of railroad timber ha
sr been intimated the story was curreI
-e that railroad money would be benin
the deal Mr. Pierce says that this