The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-02-15
FIGHT TO-DAY
ON BIG CORPORATION
A. S. Wright Hints at Suits
for American Finance and
Securities Heads.
TELLS OF STOCK DEALS

Alfred s. Wright, president OF the
! Loan Society OF Philadelphia and repre-
sentative Of minority stockholders OF
American Finance and Securities Com
panv. said Yesterday that ne intends to
start, a fight against those IN control
OF the securities company at the annual
stockholders meeting 20 be held this
morning II. Jersey City.
Mr.. Wright said the finances OF the
company have not been managed 10 the
satisfaction oil those he represents. and
he limited at civil suits against the ON
GERS INC directors.
The company was organized in 1908
in New Jersey and It's business is the
financing and developing of the prop
erty Of other companies. Until recently
there were 10000 shares OF capital stock
par value 500. outstanding. but the
directors have reduced the par value
from 800 TO $40. thus reducing the
company's liability on this Item from
100000 70 100000 This Is one OF
the features Mr.. Wright objects TO.
The bonded debt of the company IS
III Oh. VifN. ana IilO <lttN Ntt lSSll'''l tr Il
bonus TO bond buyers Mr.. Wright save
the officers of the company control 3D.
GOO shares Of the outstanding stock and
that he represents most Of the other
IL. 900 shares Bonds are non-voting.
The American Finance and Securities
COMPANY controls through stock owner
chip FL Trio Copper Company OF Arizona,
the Guanajuato Reduction II Mine
Comp?nv of Mexico and the New Jersey
Steel Company Until recently II con-
trolled the Empire Lumber Company
! Mr.. Wright objects 10 the managing by
the parent company OF each of these.
In regard TO tho New Jersey Stee'
Company al Railway. y. j., he says the
American Finance and Securities Com
pany purchased the entire plant or this
concern for >laO. 0O0. and Immediately
issued 500. 900 worth of bonds. Sl5o,ooC
Of preferred stock n $3.50, GOO OF com
mon stock against II. This was in 1906
He exhibited a letter signed by George
II. Boutou. now president of the parent
company. saying the steel company was
expected TO earn each year enough &c
pay off the entire bond Indebtedness
Mr.. Wright says the company never
earned anything
He complains OF the GuanlJuato Re.
ducticn and Mines Company deal be
: cluse. he SAYS, tho parent conpany
loaned the subsidiary si0S,000 with"u'
security. even though the company ha,
never paid a dividend. The subsidiary
said Mr.. Wright, passed its interest o.
Is bonds last July
The FL Trio Copper Company Is con.
trull,i by the parent company through
the OWNERSHIP Of S2,4Sl. 900 worth oi
stock. Mr.. Wright objects because ths
subsidiary company mas defIulted or
bonds FOR several years.
lIe objects TO the sale by the parent
company OF ti,lnU. 600 bonds II the
Empire Lumber Company at so To II
paNy. Waeu the public was paying par
for the same bonds.
Mr.. Wright said hs does not own any
stock In tho American company. but
that fr' ~de had asked him t. helr
them go; their money out OF tho con.
Germ and so he is trying TO do Il ou q
. per cent tHsls TO- himself "TIc %.
i~cctors and officers OF the az
all wealthy he said. and Il civil SUI
a~-aiust them PROBABLY will rest.-, .
the bondholders 100 cents on tho dol.
lar.
George . Rou,or. president OF IL.
company. Ives IN rliladeluh!I Two
weeks ago IN" wrote To- stockholders
that NJ. Wright was trying - gai'
thor support by misleading them. u,
,a'i Mr. Wight had sug.estrd 20 BIN
:hN the COMPANY bee consolidated VIII
Al utterly uiscledit.d am
that Pr, refused 20 heed the gu.gest5ul
Mr.. Wright denies this.
FindlHy College owns sl7.00O vortl
~ stoDs AND Nj. Wright rcprescut!
t7ts as well as many othcr investors.