Norwich bulletin., 1913-10-17

l afternoon at 2 o'clock the annual meet ing of the United States Finishing Co. was held with an attendance of four 1 of the seven direotorSs Those present 1 were Henry B, Thompson and Albert l s. Bard of New York, Charles L. Hub- bard of this city and Harry M. Horton of Providence
 President Thompson presented and read his annual report, which was ap- proved and will be printed and sent to all the stockholders
 Officers and Directors.
 The directors were re- elected as fol- lows: James BriCe, Passaic, N. J.; Charles L. Hubbard, Norwich; William B. P1unkett, Adams, Mass; Henry 5. Thompson, New York; Albert S- Bard, i New York; Harry M, Horton Provt- dencei Edward Nj Childs, New York.
 The officers were also re-elected, as follows: President and treasurer, Hen- ry B. Thompson: assistant secretary, Albert s, Bard: assistant treasurer Edward M Childs The office of sec rectary Is vacant, as it has been since the resignation of Secretary Franklin s, Jerome, following the development of the financial difficulties of the com pany last May. There are also two more directors to be elected, The direc- tors were authorized to fill these va cancies on the board of directors.
 Presidents Report
 President Thompson made his report covering the period since the new man agement took hold of the business last May. In 1t he reviews some of the ear ly proceedings in the rehabilitation of the company by stating that under date of May 20, 1913, following the an- nouncement of the company's inability to meet it's maturing hank obligations, he issued a circular letter in behalf of the directors to the stockholders, with a full statement of the condition of the company, and asked them to commit their interests to the stockholders committee. As a result of this the stockholders committee now holds proxies of upwards of 80 per cent. of the preferred and of 90 per cent. of the common stock of the company.
 On July 24th the stockholders com rnittee addressed the following letter to c. l.. Bausher of New York, chair man of the bank creditors committee: - AS your committee are aware, the undersigned were appointed to formu- late and consummate a plan for the readjustment of the companys affairs.
 At the outset of our deliberations it became apparent that no plan of re- ganization could be formulated until the earning power of the company had been demonstrated through the admin istration of MT. Henry B. Thompson acting in cooperation with your com- mittee.
 The report of the chartered account ant shows the rate of earnings for three months under the new manage ment to be sufficient to cover all ex- penseS and interest charges, leaving a substantial surplus applicable to the reduction of the debt. This would in- dicate that the company has already been placed upon a sound basis.
 A plan for the reorganization of the company has been formulated contem- plating a new issue of preferred stock, the proceeds of which are to be used in the payment of bank obligations. This company now holds proxies for more than 75 per. cent. of each class of stock outstanding. The intervening time, however, before September 13, Is not sufficient to fully demonstrate the earning power of the company. The present condition of the money market also is such that we consider 1t desirable to hold our plans in abey ance. until financial and manufacturing conditions improve.
 We propose that on September 13, 1913, the company pay 10 per cent. upon the principal of it's indebtedness, together with interest to that date, and execute new notes for the balance, quarterly in one year. these notes to bear interest at six per cent per an- mum, payable quarterly and to be sub- ject to the power of your committee to declare them due al any time should such action. in the opinion of your committee, be desirable; further pay ments upon account of the principal to be made from time to time as the earnings of the company warrant
 If this offer be accepted we believe that the liquidation of the debt can be accomplished within a reasonabl~@ time and we shall devote our utmost endeavor to that end.
 Henry B. Thompson, president U. s.
 Finishing Go; Andrew Mclean, An
 drew Mclean Co.,, Passaic, N. J.;
 Jesse H Metcalf. pre sident Wan
 szuck Co.,, Providence: Francis J.
 Leavens. president Dime Savings
 bank Norwich Edward A. Greene,
 president Citizens Title Insurance
 and Mortgage Co, Passaic, N. J.
 On Sept. at a joint meeting of the stockholders committee and the bank creditors committee, the proposal was accepted and on Sept. II payment was made to MT. c. L. Bauscher. chair man of the creditors committee of the necessary amount to satisfy the terms of the agreement, with the eff feet of securing to the company an extension of the payment of it's bank obligations for one year dating from Sept. 1, subject to the reservations In the above letter.
 The circular letter of May 20 in- cluQeQ a Dalance sheet as or Y CD. ZS, 1913. In this balance sheet the fixed assets of the company were taken at an arbitrary and reduced valuation for the purpose of ascertaining what was believed to be safe and thoroughly estimate of the companY's business In the present transitional state of the company's business 1t has been deemed advisable not to for mulate a new balance sheet of the company until physical appraisal of the company's assets have beer made This appraisal is now in the hands of the American Appraisal com pany who are proceeding with the work. This report therefor differs in form from previous annual reports to the stockholders, but presents to you the essential facts of. the companys con dition
 The balance sheet as of Feb. 2S submitted in my report of May 20, 1913 showed that the bank indebtedness of the company amounted to $2,115 900. As of Oct. 1. 1913 this debt has been reduced to $1,682,366.61 and the inter- est has been paid in full to Sept 3, 1913. This result has been accom- plished through the institution of rad ical reforms in the management of the company which reflect themselves in a, substantial increase in earnings. The followin statement has been prepared by the company's accountants, Barrow Wade. Guthrie & Co, to give a com paratfve view of the earnings of the mpany for the six months beginning 4 pril l in the years 1912 and 1913