Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1926-08-14
Plan Increased Output
At Augusta Paper Plant
With Outlay Half Million
CONTINUED from Page one)

ditions. sufficient profit can be made
within ten years to completely retire
the bonds to be issued under the
plan of reorganization and leave the
stockholders in full ownership and
control of their property" It is
pointed out that:
"A forced sale of the property for
cash at the present time probably
would not yield more than enough
to pay the secured claims, including
the expenses of bankruptcy. Up to
the present time, no prospective pur-
chaser for the mills has been found
who would even suggest an offer
which would produce a substantial
amount of cash available for dis
tribution to unsecured creditors. 1t
would, seem therefore, that the only
chance for the unsecured creditors
to realize on their claims lies in a
reorganization under such conditions
as will enable the mills to install a
new paper machine, obtain an eX-
tension of the lease and pay off the
priority claims from the earnings OF
the mills. 1t seems highly desirable
that such reorganization be accom-
pliShed at the present time. The
operation of the mills by the TruS-
tees should not be continued any
longer, and it seems quite impos-
sible for the trustees to arrange for
the financing and carrying on of a
program to increase the output OF
the mills as above outlined"
In reviewing the history of the
bankruptcy proceedings the letter
speaks of the adjudication in bank
vruptcy on January 10, 1922 from
which date until June Of the same
year the management and assets OF
! the two bankrupt companies, the
Cushnoc Paper Company and the
| Kennebec Paper Company were In
charge of Walter S. Wyman as Re-
! ceiver. Since that time the property
| has been owned and cared for by
| three Trustees in Bankruptcy
| Frank d. True of Portland, Edwin
NJ. Frye of Harrington and Walter
| S. Wyman of Augusta. On February
| 10, 1925 by decree of the Hon. Johr
A. Peters, Judge of the United States
District Court for the District o
Maine, the estates of the two com
papnies were consolidated and known
as the Cushnoc Paper Company
Bankrupt.
A description of the conditions UNI
der which the trustees have beer
obliged to carry on the business o
the mills is also given:
1.-THE mills of the bankrupt estat
have been operated regularly durin.
the entire period from the adjudica
ton in bankruptcy to the presen
| time. Operations We're carried OF
with considerable difficulty on ac
count of conditions of the mills. Thu
Old Cushnoc mills were in very ba'
physical condition and it was nee
essary to spend a great deal of mon
ey to keep them running. The Ken
nebec Mill was built shortly befor'
bankruptcy and was, in fact, in al
unfinished condition, although it hat
| been operating at the rate of abou
forty tons of newsprint per day.
The trustees have operated tn.
mills to the best of their ability ans
have succeeded in bringing the Ken
nebec mill up to point where it
output is siXty-tive to seventy tons
per day. The profits of the mills
have been used to make necessary
| improvements and additions and tt
pay off the most pressing lien claims
The trustees feel that the time
has now arrived when the old paper
machines In the CushnOc mill can Nc
| longer be used advantageous and
in order to make the business sue
cess. these should be discarded and
superseded by a newsprint machine
!with a capacity of about seventy