Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1921-08-31
Paper Companies
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with interest at. seven per cent. per
annum.
! The Cushnoc Company is presently
! indebted on direct obligations in the
sum of approximately $500, 900. OF
! this indebtedness approximately
| $3.50, 900 is for stumpage due timber
| land owners and is secured by con-
tract lien on log in the possession of
the Cushnoc Company, and approx
mately $4,000 is due the Kennebec
/ Log Driving Company for driving
| logs to the mill of the Cushnoc Com
pany, and for this amount a lien also
exists on the logs. The Cushnoc
Company is also liable on notes Of
the Kennebec Paper Company, en-
dorsed and discounted to the Cushnoc
! Company, to the amount of approx
mately $260.000. In addition, the
| Cushnoc Company has a bond mort
, gage on it's plant for the principal
sum of 100000 due in 1888, of which
| s44,500 has been paid.
| The Kennebec Company is present
| ly indebted on direct obligations in
the sum of approximately 500, 900.
| This company has issued bonds to the
principal amount Of 100000 secured
| by trust mortgage on its plant at
| Augusta, which bonds are held as
follows: Sixteen thousand dollars in
the hands of the public; $3.50, 900 held
by Wilkinson Brothers.; $4,000 held
| by the Wright Company, and the bal
ance deposited with certain banks as
collateral security for debts amount
ing to 1857, 500. These debts are all
included int he $3.50, 900 mentioned
In addition. the kennebec Company
may be conditionally liable on certain
notes of the Cushnoc Paper Company.
"A short time ago two or three of
the larger creditors began looking in
to the affairs of the Cushnoc Paper
Company and the Kennbec Paper
Company and found that both COM
panies were very heavily in debt, that
their current liabilities largely ex-
coed their current assets and that
bankruptcy proceedings seemed likely
to be started in the very near future
unless some action were taken to pre-
vent it," says a letter sent out to the
creditors Tuesday by the Creditors
Committee.
| Conferences were held at which
creditors representing several hum
dred thousand dollars worth of
claims We're present and after care
| fully considering the condition of the
two companies. all felt that the un-
secured creditors might receive very
Axrt h how Iyt-y af.axy
proceeding" confines the letter
1T was therefore decided to at
tempt the formation of a Creditors
Committee to consist of Blaine s.
Eiles and Walter :. Wyman of Au-
gusta and Douglass T. Johnston OF
the Irving National Bank of New
York City,
The officers of the companies have
agreed to deposit with the Augusta
Trust Company the designations of all
officers and directors and a majority
of the stock of both companies This
stock is to be transferred into the
name of the Creditors Committee
which will proceed to elect it's own
officers for the companies and will
operate the mills in the interest of
! the creditors. Both the companies
and creditors. representing over $500,
600 of claims, have already signed the
agreement.
The Letter further states that in the
event that creditors representing go
per cent. of the Indebtedness of the
companies do not sign agreements
before Sept. Is, 1921, the Augusta
/ Trust Company will promptly return
the agreements to the creditors.
/ Walter s. Wyman of Augusta is the
chairman of the Creditors Committee.