New-York tribune., 1918-07-06
Urge Liquidation
OF the American
Mailing Company
Committee Asks for Deposit
of Stock Under Plan to
Wind Up Corporation

Liquidation Of the American Mailing
Company is being urged by commit
tee of holders of the first preferred
stock. Among the reasons given for
endeavoring to have the affairs of this
company wound up are the rapid spread
Of prohibition and the difficulty of
operating the plants Of the corporation
owing to the non-essental character
Of the business.
The committee, which is headed by
w. Forbes Morgan, chairman, and in
cludes Frank M. Dick, Stephen Pea
body, George A. Ellis, jr., and John N.
Woodin, sent out letter yesterday
to all holders Of the $8,559,000 of the
first preferred stock, asking them to
deposit their holdings in accordance
with the proposed plan to put the COM
pany into liquidation. The committee
has limited the time within which such
stock may be deposited under the terms
tember II. The Guaranty Trust Com
pany has been named as depositary.
Each deposit Of stock must be accom-
panied by the remittance of sum
amounting to 29 cents per share, the
letter says, representing the assess
ment of 25 cents per share and the
Federal and state stamp transfer taxes
provided to be paid by the depositors
by the terms Of the deposit agreement
Application will be made to list the
certificates of deposit on the New
York Stock Exchange.
an view Of the conditions which
have arisen since this country entered
the war" the letter to the preferred
stockholders reads, "thc holders of a
large portion Of the first preferred
stock, who also are the holders of q.
large number of shares os the common
stock, deem it advisable and for the
best interests Of the holders of the
first preferred stock that the company
be put into liquidation and its affairs
wound up.
"Ihe conditions which initiate
against the present and future sue
cess of the company are:
IL The decreased demand for malt
due to the spread Of prohibition in the
country and to the regulations of the
government restricting the output of
the brewerics.
"ll. The difficulty in operating the
plants OF the company, owing to the
fact that the business is not cons dered
essential to the war. and the company
is handicapped in finding fuel, power
and transportation.
III. The fuctuating price of barley,
which is now being used as a substitute
for wheat, and which rose this year to
high price of over $3.50, compared to
normal price Of 81 and lower before
the war.
"IV. The fact that the company has
not regularly paid its 6 per cent per
annum dividends on it's first preferred
stock during the past ten years, and
that there is now Unpaid accumulated
dividends on said stock amounting to
S32.54 per share, and that during a
large. part of this period the conditions
tor the successful conduct of the malt
ing business were much more favor
able than at present, or than from
present indications there is any rea-
sonablc probability that they will be in
the future.
"V. The danger that if. in view of
the above unfavorable conditions. the
company continues in operation it's as
sets may be gradually reduced
Whlle IN our opinion the present
condition of the company is due to the
above facts. which could not be fore
seen and whose existence constitutes
no reflection on the management of
the company which has been able to
preserve its assets intact through the
recent unprecedented business compli
catlons. the Importance of conserving
the assets of the company and the
necessity for the holders of the first
preferred stock to cooperate for the
protection of their interests, is none
the less apparent. We believe that if
the company is promptly liuuidated a
greater value will be realized than
could be expected if the business of
the company should be continued or
than is reflected by the present market
price of the stock"
Announcement was made early this
year that the American Mailing Com.
pany had withdrawn from the sale of
malt and had arranged to close IN
several OF its plants preliminary 70
l!quldatlon. At the time it was stated
thHt the eight plants were valued at
81 100000. based upon the reproductjon
cost cost at the present price of materials
re company was organized in 1897 as
a consolidation Of twentv-three small
CONCERNS located in New York, Chicaeo-
buffalo, Syracuse, Detroit and otber
cities. 0''e'