Norwich bulletin., 1914-05-15
FUNDING OF FINISHING 60. DEBT.
Sockholders Comntee Ass Subscriptions by Bonolders and Stockholder. to an I..ue of q in Debentre Bonds Bonus of Common Stock - Company's Net Earnings in 13 Months $193 299 Outlook Good to Put Concern on Permanent Profit Earning Basis.

A SIaIeme lent to tho SLOCkaOtuSIS diio bondholders of the United States Fin- tshing company was issued by the stockholders committee on Thursday, covering the condition of the company and proposing that the security hold CTS subscribe to an issue not exceed ing s1,000,000 of six to nine year de- benture bonds to be used Tn Iunoins the company's debt.
 With the statement the bondholders and stockholders of Norwich and VI cinity are invited to meet the president of the company, Henry B. Thompson. in the board room of the Norwich Savings society on Monday afternoon, May 18th and those of New York, New Uersey and vicinity are invited to meet President Thompson at the company offices in New York on Thursday after noon, May. 21.
 The statement calls attention to the fact that the net earnings of the com pany in the thirteen months since April l, 1913. while the new manage ment has been in charge, have been $193,s99.75 as contrasted with a loss of $25, ,322.43 for the thirteen months previous. This has been during a De- riod of generally bad conditions in the trade but under normal conditions the report says that the stockholders com- mittee is of the opinion that the com pany should show annual earnings of $350,000 over and. above interest charges. The committee further ex-. presses it's belief that the business of the company will be rehabilitated and put on. a basis of permanent profit earning.
 Statement Made.
 The following is the statement: To the Stockholders and Bondholders
 Company:
 The time has come when, in order to preserve the business of this com pany, it is necessary for the security holders to participate in the funding of the companys debt.
 To give a clear view of the situa- tion the following affirmation is sub mitted:
 Standing of the Company.
 The physical properties have been appraised by the American Appraisal company during the past year. On the has been prepared as of December 31, 1913, and it is hereto annexed. It shows that the company's net worth over liabilities other than capital stock is $4,241, 167.22, that the preferred stock is intact. and that the common per share.
 The Floating Debt.
 When the present management of the company assumed control on the 1st day of April, 1913, the outstanding note indebtedness of the company. in
  pany, The Sterling Improvement com pany and The c. P. Darling company, which it controls. was $2,245, 900. To- day it's not indebtedness is $1,721,- 466.61, showing a reduction of S523,- 533.29. This debt excepting notes of The c. P. Darling company and The Sterling Improvement company for $24,000, falls due on the 18th day of September. 1914. All current obliga- tions have been paid when due, and 1f, f,%o III 1. 1914. is approximately the same IS at April 1. 1913.
 In addition to this during the last year the mortgage debt of the com pany has been reduced by payments into the sinking fund of sSS,950.
 Earnings of the Company.
 The general state of the trade in the finishing business during the past two years has been exceedingly bad Not withstanding these adverse conditions and the temporary losses entailed by the reorganization of the companys management. the company has earned under it's new management, which as- stunned control on April 1, 1913, during the thirteen months which have elapsed since that time, the sum of $193, 299.75 Cover and above all inter est charges, the amount of which was pairs charged to expense in the amount of s295. .545.33) as compared with a loss of s25. 322.43 for the previous thirteen months. This large item of repairs charged to expense account was nec- essary in order to maintain the plants in proper physical condition.
 The outlook for business during the coming year Is much brighter. This company has earned in single year as much as s6s7.21s.21, and the average net earnings per annum for the six years ending June 30, 1911, were $490,- S25.63, and with normal trade condi- tions it is the opinion of the Stock holders committee that the company should show annual earnings of s350,- 900 over and above interest charges. Necessity and Advisability of Action
 by Security Holders.
 The stockholders committee believes that the security holders have an as mess of the company will be rehabili- tated and put on basis of permanent profit earning. The bank creditors have up to this time shown great for bearance and desire to cooperate with the security holders to save their property
 The bank creditors committee, how ever, now insists that the banks should 10 longer be called upon to carry the 0Aole debt.
 N claims that the ultimate profit to be derived from preserving the com to the security of the bondholders; and that therefore the security holders must now purchase some form of se- curity which will enable a substantial payment to be made to the banks.
 Your committee therefore asks from stockholders and bondholders subscrip- tions to an issue not exceeding one million dollars of six to nine year de- benture' bonds payable in four equal 1nstalments at the end of six, seven,