Norwich bulletin., 1922-06-06
DANTELSON AND PUTNAM NEWS

posted with the committee this ccm- mittee can only represent the first pre- ferred stockholders in any negotiations 1t may carry on in behalf of the stock holders
 As has been previously pointed out, the creditors agreement with the mill com pany expires August Is, and if the bus mess of the concern is to De kept going Sl 900, 900 must be raised by that time In seeking loan of this Amount the pro tective committee would like the endorse ment of majority of both the first and second preferred stockholders. However, Mir. Bullard offered no advice Monday aS to what the stockholders at the meeting here should do with their stock He merely pointed out the essential facts in the situation now confronting the com pany and left to each stockholders own judgment a decision as to whether the stock be deposited with the committee or withheld. He stressed the fact that the second preferred stock has no voting power, is without influence ss to adjust ing the company's affairs, and that the destiny of the company is in the hands of the first preferred stockholders, who have exclusive voting power.
 The anomaly of holders of a junior Be- curity being invited to participate with d readjustment of a concerns affairs was called to the attention Of the meeting by Mir Bullard, who pointed out that this might be regarded as an indication o. the good will of thoss holding the voting stock.
 During his discussion with the stock. holders, which was somewhat informal in nature, Mir. Bullard answered numbers of questions asked by different persons | among those present. It was finally de- cided that, having obtained all the infor- nation that MT. Bullard was in a posi- tion to give them, that the stockholders meet again Thursday evening at $ 1 o'clock and decide as to depositing their holdings of stock.
 i It was estimated Monday afternoon by one in close touch with the affairs of the mill company that second preferred steck | representing a face value of rot less than $200,0O0 and possibly as much as | S250,00 Is held, in Danielson and imme. diate adjoining territory. MT. Bullart stated to Mondays meeting that he per | sonally holds 150 shares of the second preferred stock
 | Interviewers with various local owners of second preferred stock indicated Mon day afternoon that they are still uncer tain as to depositing their stock, and thi. may be readily and sufficiently explained by stating that the situation they ar, called upon to meet is strange to tn majority of them Naturally, they al are very anxious to do what is for thcil 1 own personal interest and the interest o the concern in which they have invest ed. The fact that the second preferret stock has no voting power is one thini that seems to weight the scales in favo of depositing their stock with the protec tive committee. They were told at Mon l days meeting that there is nothing |, be gained by holding out against the de posting plan, and the same time warned that they were not being adviseI to de posit the stock, though that course seemed the desirable one.
 The present need of funds by the Con necticut Mills company is a mater O interest not only to the stock holders, bu also directly or indirectly, to every resi- dent of Danielson. Fancy the presep situation in which orders for fabric ar going thrilled because of the company need of funds, which cannot be obtained to buy materials to be converted int tire fabric.
 On the word of one very familiar wit the manufacturing end of the company business, the Connecticut Mills company 1 considering the way business is nov shaping up, could meet every dollar C it's present indebtedness within year t IS months if it can obtain the million needs at the present time. A year az the company owed $7,000,000, but i twelve months s4,000,000 of this ha been earned and paid, leaving a preser indebtedness of s3,O00,OO0. Sale ot tn company's mills here and at East Taur ton and Fall Rvier if forced at this tim would be under such conditions and . such prices as to leave nothing at all fc the second preferred stock holders C owners of the common stock, which wa quoted at nearly $4o0 per share tbre years ago and now has practically n market value.
 - Here, then, is the situation that tr second preferred stockholders are facinj
 The burden is upon them to deci6 whether they will cling to second prt ferred stock that has no voting powe
 or whether they will deposit this stocl
 as the protective committee is reuues ing that the committee may be in a be
 ter position to negotiate the loan wan