Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1926-08-14

bee Mil. The cost OF installing this
new machine, together with the nee
essary building additions and auxil-
larry apparatus is around five hum
dred thousand dollars.
1.-THE mill properties are located on
land leased from the Edwards Manu-
featuring Company under lease eX-
piring in 1880 which does not have a
right of renewal. 1t is believed, how
ever, that an extension of this lease
can be secured If practicable re-
organization can be effected and the
mills continued as a going concern.
1.-THE trustees and the manager of
the mills believe that If the new pa
per machine is installed and the mills
are put in a condition to manufacture
one hundred thirty-five to one hun
bred forty tons of newsprint per day
the cost of installing the new ma
chine can be paid for within two
years from the earnings. The esti-
mates in this case have been care
fully made. All creditors however,
should clearly understand that like
all estimates they may be materially
affected by contingencies which can
not now be foreseen. They are the
result of the best judgment of all
connected with the management but
are not and. cannot be in any sense
guaranteed.
The officers of the Cushnoc Paper
Corporation are: President and
treasurer, Walter S. Wyman; vice
president and general manager, f. q.
Bagley: secretary and treasurer, +.
II. Maxcy; all of Augusta. The dir
ectors are w. S. Wyman, Augusta:
Blaine S. Viles, Augusta; Frederick
c. Bagley, Augusta; f. T. Wilkinson,
New York City; Hugh White, New
York City. The corporation has au-
| thoriZed capital stock of $4,000 of no
par value, all of which is common
stock. The by laws of the company
permit Of the issuance of this stock
| in fractional parts of one or more
| fifths, as well as in full shares.
It is proposed to issue this common
| stock of the new corporation in eX-
change for claims for unsecured
| creditors against the consolidated
| bankrupt estate. The basis of eX-
| change is to be one share of the COM
! mon stock for each one hundred dol
| lars of claim as allowed in the bank
| ruptcy court. The fractional parts
| of shares will be issued to make VI
to the full amount as near as may be
| without exceeding it. but a creditor
| may secure an additional fifth by
paying the difference between the
| amount of the allowed claim and the
next higher fifth share.
After obtaining the unsecured
claims against the bankrupt estate
the new corporation expects to pur-
chase the bankrupt assets in exchange
for these claims by bidding them in
at such price as shall seem justitiable
at a public auction
Present holders of the Kennebec
| Paper Company bonds Will be asked &c
| exchange them for bonds of the new
| corpora ton and preferred creditors en-
| titled TO priority payments VIII also
| be asked to accept these bonds. Bonds
| will be issued as security for money
| advanced to pay for the new machine
| No interest will be payable on the
! bonds until three years from the date
| of issuance, three years interest in ad-
! vance being added to the principal.
| This is done to put the new corpora
| ton in a position to put all of its
earnings into the retirement of its
| debt.
-. The new bonds to be issued in the
first instance will be designated Sc
IlCS -, dllu w III liON CANtCN piiC iiAi'-
| lion, five hundred thousand dollars in
| principal amount. The bonds will be
! 2O-year bonds and will bear interest
at the rate of per cent. per annum
| and will be dated July l, 1926, to ma
ture July /, 1916. The bonds Will be
callable at par on any interest date,
together with any accumulated and
unpaid interest thereon.
AS the holders of the Kennebec Pa
per Company bonds are entitled to
foreclose the mortgage securing the
same, it is proposed in order to fur
nish them additional protection, and
to readily effect the exchange of their
bonds for bonds of the Cushnoc Pa
per Corporation, as we'll as to reason
ably secure those advancing the cash
for the new machine and alterations,
that all of the stock of the new cor
poration shall be put in a voting trust
to be administered by the Augusta
Trust Company as voting trustee.
The voting trustee is to vote the
stock, under Instructions from the
holders of a majority of the bonds of
Series A until all bonds of this series
are paid in full. If, at any time, the
stockholders desire to terminate the
voting trust, they may do so by pay
ing off the bonded debt. The con-
troll of the new company will thus be
secured by the creditors just as soon
as the bonds are retired.
Assuming that the organization
and the installation of the new ma
| chinery had been completed on June
| 80, 1926 the balance sheet of the
Cushnoc Paper Corporation would
show as near as can be told by the
estimate. Fixed assets of $780,
S71.3S; quick assets Of s111,72222 and
total assets of s1,S02, 50S.27. The liza
| bilities are given as s1,502, 996.19. The
assets of the consolidated estates
are now subject to three mortgages
| totalling 1858, 541.66.
An additional note appended to the
letter and signed by Mr.. Wyman
reads as follows:
$50 much time has been taken up
| In completing the arrangements for
| this reorganization that it is now
| necessary to make all the haste pos
sible. Please sign, acknowledge and
return one copy of the enclosed as