HomeMy WebLinkAbout2148CINBUUR To SHAREHOLDERS WHO HAVE NOT YET GIVER 'CONSENTS."
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Re DOMINION FENCE CO. Lii;ITiL.
Tcrento, March 21/1303.
Dear Sir: -
I was much surprised at seeing a Notice of which I had no
previous knowledge in all or nearly all of the Toronto papers of
blcodeY the 16th insta but on seeing it I sent Goties to most of
our shareholders. —S ppcse it was the seek of --the Court Reporter
at Osgoode Hall and think it is net likely to do spy harm. We
have reason to :eel thankful for the success thus far achieved in
having finished ogr machine, paid the very few creditors we had
100 cents on the rand having as we hope a surplus of several Uses -
and dollars besides all our machinery, plant and patent rights free
from debt.
This scouldres never have been accomplished had it net been
for the value
res Donee from the holders of more than three-four-
ths in value o4 our �ef erred Stack, who g us "Consents Guar to their
prep ortion of miarantee fund held by the gusto and Guarantee Co.
being'fiaidto Yiquidator to satisfy debts and finish the Electrical
Fence elding Machine. By so doing they protected the interests
of all other shareholders as well as their own, and are therefore
justified in asking that those who did not consent when there a-
peared to be so much risk of loss should without delay fellow t9eir
example and thus place all on the same footing. The necessity for
this course will be seen by the further information which I have
now to give.
On 16th inst the !Easter in Ordinary instructed Liquidator
to bring an action in the High Court of Justice to cancel agreements
with the Trusts & Guarantee v ompany prepared by themselves and which
under my agreement with Dominion Fence ompanv I was bound to exe-
cute; and it is protocol to make each shareholl Baer who has not yet
given consent to payment of his share of the guarantee fund now
held by the T & 0 Co. a defendant in this action. It is,quite evi-
dent that he believes the arras asset for guarantee of dvidends to
have been an illegal contract which should be set asa8e and from
what I have heard it is quite possible that the higher Gt aurt'may
net allra shareholders who did not give their "Consents" to havv„an
advantage over ethers by gettingged any more dividend paid out of capl-
t"1. 5r it. night even be decid that the Trust 0. was only act
-
own coats which mi=ht 1n some cases amount v
e of the Cuarantee"Fund. Until this suit is
. ' V The Trusts & Guarantee Co. still held of our funds about
as follows:
Balance of Guarantee Fund say 11630.00
Refund offCcmmenesretainemosit them . 3_3w50.00
l
w $3s�Ci
But they refuse to pay anything until the Guarantee Fund
is all released, and as we require the money in their hands to
stock our factory with wire, so as to proceed with the manufacture
of fencing and earn revenue therefrom, we cannot commence the busi-
ness until after this money ig received from them. In the meantime
me
it is net received bV Lhe Consents' of our own sh arehol dere,
who have act yet sent them in, the Liquidation would be going on
with anneceesar expenses until the termination of suit which might
be prolonged indefinitely and the coats of which would be simply
wasting our caiital that might otherwise be used in establishing
the business for which the Campany was organized.
There can, I think, be no difference of opinion as to
what is the proper course topweue under these circumstances.
Those who have not yet given their "Consents" should sord them to
me at once duly executed on the enclosed form along with their car-
tificates. This ought to be done immediately to enable us to have
the Liquidation dissolved, the expense of suit stopped, the Company
re -o anized, and the business commenced. We have no other means
of obtslain¢ money until after our business is in active operation
when more stock can be disposed of. But we should order a stock, of
wire as soon as possible nd also '•ay some hundreds of dollars for
_ remaining costs f-liquiLtion bofece !A can be dissolved.
Your immediate attention to and compBance with this re -
est ay save much loss to the Company as well as to yourself in-
dividually, in event of the suit being entered which I = trying
to avoid. I may odd that the Liquidator aFpreves of my sending
out a cir cul er
to those who have not at given their "Consents
and I sincerely Into that not one in [hie i,osition vill any longer
decline to do as the great bulk of our shareholders have already
done for the general good. Rot a day should be lost in doing this
as the write may be issued at aro time within the next two or three
day s,, and they would have been issued to -day by L;r. Marton, the
solicitor, if I had not got !Ir. E. R. C. Clarkson records, to in-
struct him to dela them until 1 sea what will be the roeuit of
this final appeal c the few shareholders who have not yet given
their consents.
Yours truly,