Norwich bulletin., 1914-06-29


 Finishing company for the year that will end with June 30, 1914, exceed SZSo'oUO. according to the very pleas ing statement of the condition of af- fairs of this concern as detailed by the creditors committee. of which Herbert J. Wells, president of the Rhode Island Hospital Trust company, Is chairman.
 Net profits of the concern for the year now ending exceed S230, ,000 For the balance of the bank indebtedness outstanding the concern offers to the bank creditors notes to be dated Sept. 1S, 1914, all to be paid within three years, with interest, and the commit tee has accepted this offer, subject to the formal approval of the banks which must give their answer not later than July Is, 1914. The circular is as follows:
 Committees Statement. To the Creditors of the United States
 Finishing Company:
 The bank creditors of the United states Finishing company now hold notes which aggregate S16s15oS7S
 Since the report of the committee of July 24, 1913, your committee has been giving close attention to the affairs of the company and acting in constant cooperation with the stockholders committee and with the officers of the company. Also since the last report or the committee, MT. c. l.. Bausher has, owing to ill-heaith, resigned as member of the committee, and the committee has. in accordance with the provision of the creditors agreement of March 20, 1913, elected Mir John Quinn member of the committee, and MT. Wells has been chosen chair man.
 AS the condition of the company and us aHairs improved, your committee IeIt Justified in notifying the stock holders committee and the company that, while up to this year your com m1ttee had shown great forbearance, the time in your committees opinion had come when there should be affirm atlVe action on the part of the stock holders to save their equity and prop erty, and, in accordance with that de- mand from your committee, the off cers of the company have for some time been actively at work in endea- voring to raise the funds from the stockholders to make 8 substantial payment upon account of the bank indebtedness.
 Condition Satisfactory.
 Your committee is now glad to be able to report | satisfactory condition of the company and a firm offer from the company. which, in the opinion of your committee, will yield to the bank creditors the payment of their claims in full with interest, as out lined below.
 The original bank debt of the com pany amounting. when your commit tee WAS formed to approximately s2.- 245, 900. has. through the sale of col lateral. the application of offsets and the payment of 10 per cent. on &C., count last September, been reduced by over s550,O00. so that the present bank Is $1,691 sos, represented by notes of the company. These notes all mature on the same date, to wit, Sept. 13 of thiS year
 The stockholders have agreed to take an issue of serial debentures, to be dated approximately Sept. 1. 1914. and to be payable in equal install ments, in six, seven, eight and nine year after that date, which will enable the company to pay in cash to the bank creditors on Sept. 13, the date when the present bank indebtedness natures thirty-three and one-third per cent. (33 Is per cent.) of it's bank Indebtedness, which cash payment amounts in round numbers to s564,- 900.
 For the balance of the bank indebt- edneSS, the company offers to the bank creditors it's notes to be dated Sept 13, 1914, in the amounts and maturing as follows: Twenty per cent (20 per cent) of the balance after the payment of said B 1-3 per cent. in one year; twen- ty-fve per cent. (25 per cent.) of said balance in two years, and the remain ing fifty-flve per cent (55 per cent.) of said balance in three years, with in terest at six per cent G per cent) per annum, payable quarterly. The com pany reserves the right to anticipate payment of said notes in whole. or ratably in part, on any interest day. The company agrees that it will antici- pate these notes to the fullest extent made possible. in the judgment of its directors. by its earnings.
 Three Essentials.
 In connection with this offer of the company, your committee has had in, mind three essential things: First, the control of the company while the bank indebtedness remained outstanding; secondly, that all obligations to the bank creditors should mature at dates materially earlier than the maturity of any debenture or bond Indebtedness of the company; and, thirdly, the post ponement of the declaration or pay ment of dividends until the bank in- debtedness should be paid.
 l. AS to the control of the com pany, the stockholders committee, which has proxies from S5 per cent. or more of the stockholders. agrees that until these new notes to the banks are paid that committee will vote the stock of the company for a board of eight di- rectors made up of the three members of your committee or their nominees, two representatives of the stockhOld- CTS of the company, two representa- tves of the subscribers to said de- benture bonds and the president of the company. Your committee has entire confidence In the integrity and eff ciency of the present management of the company and believes that with the board of directors so constituted the interests of the bank creditors will be fully safeguarded.
 ,. The last maturity of the proposed note issue to the banks becomes due and payable some two years earlier than the first maturity of the proposed serial debentures and of the bonded in debtedness of the company. In the opinion of the committee, the earnings of the company will provide for the payment of all interest and company charges of every character and also be sufficient to retire the said note indebt- edness as it natures
 g. As to dividends of the company. the proposed debentures will contain a provision to the effect that no divi- dends shall be paid upon the stock of