Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1922-03-08
REORGANIZATION PLAN
Cushnoc and Kennebec Paper
Companies Will Merge Under
Plan Which It Is Understood
Will Be Presented-List of
Some of the Largest Credit
OrS


Ors
The consolidation Of the Cushnoc
Paper Company and the Kennebec
Paper Company, bankrupt corpora
tions, into one company and the of
fering of the stock of the new con-
Germ to the creditors in lieu of their
claims is understood to be the re-
organization plan which it is expect
ed will be presented at the adjourn
ed meeting of the creditors on March
Is at the Court house before Referee
in Bankruptcy F.. J. c. Little. If
this composition is accepted by the
creditors the speedy conclusion of
all the troubles of the two corpora
tons will result.
The necessity of keeping the
plant running in order that the
creditors may realize anything was
pointed out by Attorney Everett
Maxcy at the last hearing before
Referee Little. Under the proposed
reorganization plan it is believed that
a permanancy of operation will be
brought about.
The unsecured liabilities Of the
Cushnoc Paper Company amount too
$644,554.S5, while those of the Ken
nebec Paper Company amount to
$3S9,214.22. The Kennebec Com
pany has outstanding mortgage
bonds to the extent Of $439,S67.7S.
and the Cushnoc concern to the ex-
tent OF $346,9S1.76. 1t is to be pre-
sumed that the stock in the new con-
Germ will be issued merely to cover
the unsecured Indebtedness.
According to the schedules filed
show that the Cushnoc Company has
assets of $1,403,703. and the Ken
nebec Paper Company. $914.O26.
There are more than 400 claims. 1t
is probable that Referee Little will
appoint the appraisers at the next
meeting on March IS.
The Standard Oil Company got
hard hit in the Cushnoc failure. The
claim of the oil company is s5S,027.
A large Oil burner was installed at
the plant and this chewed up hun
dreds of dollars daily. AS showing
how the profits of the company fell
off after the world war, there is due
for income taxes for 1920 but S.
$40, while for 1917 there is claim
in favor of Uncle Sam for $S6,944.
There are some $4,000 in taxes due
the city Of Augusta.
Some of the other larger claims are
Estabrook e. Co., of New York City,
$4,000: Kennebec Savings Bank of
Auugsta, $4,000; Shuttleworth, Keil-
Ter 6, Co. of New York, $50, 5000; Gen.
trail Maine Power Co., $4,000: Rice,
Barton & Fales, machine and iron
company. $175,0o0; American Mu-
tual Liability Insurance Company of
Boston, $1S,157; Augusta Trust Co.,
$32,500; Brann & Fogg of Bangor,
$2S.71& Eastern Pulp Wood Co., of
Calais, $1,000: Edwards Manufac-
turing Co. of Augusta, $15,S77: Farr
& Harvey of Augusta, S37,491; E. NJ.
Frye of Harrington. 5000; George
Tullers Sons of Hallowell, $3.50:
Great Northern Paper Co. $6,464: S.
NJ. Holway of Augusta. s1b,064:
kennebec Log Driving Co, s9,9S7;
Knox Wooden Co. of Camden, $5,51S;
Marion Land Co. of New York City,
$26,335; Moore & Foster of Ellis
worth. s15.S30: North Arson Manu-
featuring Company, $14,S03; 1. M.
Pierce of Bangor. 5000; Union Iron
Works of Bangor. $5,220 and Will
kinson Bros, & Co., of New York
$11,619.
Certain obligations are on notes
given by the kennebec Paper COM
pany to the Cushnoc Paper company
and discounted by the Cushnoc Pa
per company in certain banks. These
banks include the Central Nation
al bank of Richmond, Va, $4,000:
the National State & City bank of
Richmond, Va. s75,500, and the Irv-
ing National bank of New York City.
$117,500. The Cushnoc company
practically owns no real estate, but
leases from the Edwards Manufac-
turing company.
There are also certain claims based
on stumpage permits, by the provi-
sions of which the logs are to re-
main the property of the permitor
until paid for. Some of the logs have
probably been used, some may be at
the mill yards and some in the woods.
Identification can be possible only by
an examination of all the logs and
the Identification of the marks. Some
of the parties have signed their liens
to Clarence E. Philbrick of Augusta.
as trustee. They include Clarence E.
Philbrick, $33,697; Russell V. Stafford
of Dead River; 1888; Almon B. Sar-
gent of Stratton, SLIT; Matte E.
Goodwin of Skowhegan, s6O31; Lew
is A. Burleigh, as trustee, $S5O1; Ella
j. Blanchard of Pennington, $3.50;
w. D. Hutchins of Augusta, note Civ
en- for $4,000. but no logs cut under
the contract; F.. and o. H. Clark of
Caratunk, $5430; o. w. Chase of
North New Portland. $1273; Fred
Clark of Caratunk, $62i9: Guy P.
Gannett of Augusta, note given for
$4,000, but no logs cut under con-
| tract; w. D. Snow Of Skowhegan.
S2546; Blaine S. Viles of Augusta.
$4,000, also note given for $4,000, but
I no logs cut under the contract:
George F. West and f. c. Hersey of
Portland. $1501: Walter S. Wyman
| of Augusta, $4216.
Included among the assets is the
stock in trade which purports to be
of the value of $174,42S, with raw
material and supplies $4s,29S, and
I finished product to the amount of
/ $3O!SO5. The mill and fixtures are
| valued at $232,380 ana the ma
chinery and equipment $61s,475.
The largest asset account outstaad-
ing is that against the Eagle Paper