HomeMy WebLinkAbout2145Toronto, January 12th,1904. '
TIl thil Shareholders -pt D8m4m.iOn Eiruda Cc TH.
Your Directors have to report an experience on the part of Dominica
Pence oa.,during the past year,wTiich they 'believe to be knollLn
un receden-
ted in the history of Join? Stock Manufacturing ompanf es in Canada.
After going into liquidationof 9th. December 1903 for the purpose of
`paid 1n lull,and all ex -
far completed as to make
us so much more time call
successful.
done in the way of ad-
ooeratus.befors it could
The drawings were only -finished by Patent Solicitor a few weeks ago,and he
is now at work on the n specifieationa,after completion of which we hope the
patent will be speedily issued.
The importance o: gettingg Daient as n+ sooncasible will be understood
when i^. is stated that everai parties,who haveseehw,our ,L, wile
that they will invest conscderaole sense in our Preferred Stock as soon as
we secure patent,but not before yy and same others with whom we have been
ourrospendan> about Patent i },ps,re`use to pur
l',{�ase until they are actual-
ly issued. e value a`_ Patent rights is always more or less problemati-
cal but in this once these rights may be north five or six times as much
as all curlother assets,and no offer t has bean,er should be, epnred,to
realize as much as possible from tham,es-the money coming from such sales
ouuarngs .n Will"' ,, 1,aa .,. ...., -------- _p".
As you are already awaro,great dela- was caused in connection with
the re -winding of Dynamo in consequence of our Zlectrician having been laid
aside for over .three menthe -with Eyphoid faver,but this could not be
avoided.
After the machine had boon almost completed it was decided to put
another attachment upon it,for the-plocust of making a small tension curve
on every strnnd,between each pair ai at ay wires,to allow for the expansion
and contraction of metal without the use of eppeeinga. This has been a per -
feet success,and has greatly increased tha valus of the machine as almost
everyyurchaser prefers the fence with these curl to that wit( straight
wire. gut about six weeks had to be spent in Liz this word.
Another contract was also made with mr. Raya he Rleotraeian,to put
in an additional electrical apparatus,which he guaranteed would enable us
to
make deeper and more uniform welds in our faring This work was to
have been done in two weeks according to his cantract,but it was about six
___c_ w.a... n mea Ilmnlatad.on account of his bavim so many orders to
the
donteeal,and urged that one or our erica bale us Lien. .0 _ . •• •--
gentlemen at once. This was done,and shortly afterwards a letter was
received from the General purchasingAgent,invit:ng us to furnish them
with quotations of yyrices for their fencia¢ and enclosing a blue print
copy of their specifdcation,but it may be itna end of this month before he
.3 -
can get particulars of contracts to be let for next season. In.their
case it is understood, that they. simply buy the fence web in rolls, and
ship to their own men who pput it .p. -
We were also invited Eo tender upon the seyply of wire fencing for
Toronto & Niagara Power Company right of way between Toronto and Bragara,
and we put in a tender on 19th December for that work, on which it is at }d
there were 25 tenders submitted. We understand that our fence sea one of
the three or four from which'a selection was to be made, but this matter
haw not
d shiget been decided.
Slhen Dominion Exhibition commenced we empl%ed three hands, and manu-
an shad Ioncin¢¢ from a carload of wire that we had purchased, And we sold
anpped in Sanious directions over 1,000 rods mainly for the purpose
of demonatrating that our business was established but we did not dere to
run rogularlyy lest all our wire should be used up tuefore money came in to
buy more, and besides, we .require a Wire Straightener to cut and straighten
our stay wires, as 'we have in the meantime been abliged to purchase them
from another firm which is An unnecessary expense that will be avoided by
getting a straightener of our own.
As it was late in the season for fall trade we have now got a stock
of about 1900 rods of fencing on hand which must be held for Spring de-
livery unless before that time we sell it to some fence .man in the country.
onsidoringg the amount of means that we had to work upon during the
peat eight montFa, sines liquidation ended, and the difficulty of getting
what was really due to As by others,, it is simply, amazing how we have
&a -r. each.
_he fixed monthly charges for rent and power and ix.
Patterson's wages alone amount to $175. or for the 8 mos. ) 91400.00
and we have paid in vases to other hands employed, advertis- 275.00
ins expenses,inu.Stationery, Printing, Postage, and fence
rolls sent out assamples . . . . . 263.74
Office expenses exclusive of *ant. . . . 312.90
For 1 carload of wire. . . . . . . . 598.62
For wire and vire stays bought from other firma . . . . . . 350.23
For freight C express chargee . . . . . . . . . . .. 86.51
Cost of Lawyer moving to dissolve liquidation. 100.00
Cost of another helpi�W to Het settlement closed with Trust
and Guarantee Co. for 5827.95 . . . . . . . . .
TOT9L.
And to meet all these obligations after getting out of
liquidation with every claim pard in full, and no debt on
our plant, the'eeretary, only got from the Licuidator on lat.
May, .1903, a balance of . . .. .. . .. . .. .. .. 75.69
The onlyy other available assets that wm had were our claims
against the '1' C G Co. for over 1600. That Company invited the
Secretary to bring along his solicitor to settle with them, and
was suite villin¢ to leave the whole matter to the decision of
which he knew mi pht keep us from fitting any of the money to pay
expenses of the usinese and he chafers insisted upon a reals
oneyle add immediate settlement, without any litigation. After
writ ung many lettere in rapid succession he at length @at from
them on 7th August, and imoediately accepted,(subjeppt o aQ�ra-
val p�,,gx�pyyy 1tI� p1�oy..,tlGa. ats e.g31�n). "^ �r�.eT,
in PuIT a"o Etle�ae i1I o`ur clans ac.ou ng to . :827.95
.but this was not actusll'f received b�y us until Aug. 25th.
We have received fron sales of wire fencing; .say . . . . . . . O4
WN
And -we have now stock on hand as follows;
1903 rode o4 fencing north SOc. per rod. .. . $951.50
and 116 coils, 16,2b lbs. Fence wire t 2-1%4c.per 1t.365.40
and about 600 Its. of stay wires at 2- /4c. . . . . 16.50 x133
Total short&e t the close of eight months on
December 31or 1903 is thus shown to be - say. . .. . . . . . $739.56
is
our Iunde in Sneir hands.
Bearing this in mind
has thus far been accessed
After the liquidatior
of all our shareholders, e
reserves to lir.uidatcr or
which one been-disoosc'6 of
Paid claims o ll cc
in full eatisfa<
Expanded on completic
Liquidation samovarsf
Balance handed'over
It is av dent from it
uidation at thio Lire we di
and in that case we vould
eluding our very valuable
Tie discharge from 1i
cry until 4th i'.ay, and the
now Board of Directors Loa
holders on dune 2nd,1904.
eatery to cancel agreement
had undertaken to gunner to
sales of our Preferred Etc
compe
H.
is authority was as
was cancelled by mutual ag
for ;;827.95 received from
as with the rtack of this
Still hold by them, as sec
hal era, who did not conse
The cancellation of t
Ree utast advantage that he
liquidation, and gettingp o
commission, which musk Iiev
€erred 8tgok�clnaourhnhsl
0 over 55::1W0 i
Eecaminpp so successful
the nixedca dtal, 'ad chis
After ligaidation was
Secretary unexpectedly rem
gy aa standing duo to
95.69 rueceived from liqui
pressing claime fer the Pi
o� ?had„Sm£4, the folicitd
o rqua a noacme very
rendered for that service{
Poa aible for our company
rte consented to take $100
took company's notes for t
3 -
11 dlepo6e4. al in that way seamed a very has -
at o Aad noE confidence in the ultimate success
liqu?aati n with ovary pplaim paid in full and
9 in band �rom the liquidator, and to commence
business under these circumstances seemed ab -
even including soma of our own shareholders
heat plan was to sell out to some Syndicate for
and then wind up the whole bus!nose.
if lieuidation had been forced as at first pro -
he business at that time the assets rould pro -
,h to pay claims end sea(a of liquidation, and
old have received would have been the few ay -
by the T C. C Co, tc sacura which they hel�
t us now look at the results of the course that
ey pursued.
s entered uon we at the consents
apt six, to the payment of their
Lie amount t..us resolved by him $6230.88
a fo11vos:
Uses .n ,ull $3548.30
on o4 Directors fees.- 353.30
of nannies . .. . 70236
aw rests L Insurance - 1546.23
liquidator to 4r.Fenton, 75"69 6230.88
statement that if we had not got out of liq-
we would not have been able to get out at all,
ve entirely lost control of all our assets in-
tent rights.
idation was notsiggned by the luster in Ordin-
e-organization ofthe Company and election of
place at spacial general meeting of the Share -
that meeting so horiLv was given to the See-
ith the Trusts : Guarantee Co. under which they
payment of dividends for five years uppon all
and to act an Registrar end Trustee for this
I upon An;d the agreement with the Trust Co;
ement at the time of settlement by compromise
3m, and that Corporation now have nothing to
n a sxce t in so far as concerns the Iunde
i�y or far dividends of the six share -
to surrender them, to Liquidator or to this Co.
"extended, .as to roovire the- whole an
he case much sooner than we anticipat
d in the beginning of i'.ay,1903, the
at 10� from soma private claims of
shell ;y and witi this money and the
was able to meet the rent and some at
After ra-organization of the compo
bsar, ergo ed to make motion for rpmo
about payment of his account o4 gg141.
e seemed to think that it would ba im
long with so little working capitol
and one of our directors paid him ane
—a—
The T i' G Co. appeared to be fully bent a -on palling us nothing - not
even the treat none �yy released by the consent -of och _'iereholdevs - :�ithout
a fall settlement oY all our cleima u -on ver; eesc terms is -r. em, until
at length on .august 25th, as already statsd 6827;95 cis -ot fro r. luno.
megotiationsthe ,'ehereswehhad however,
to demandta iron,tand
and honorablerset-g
tlaMont, tie were much pressed for the funds necesaaey tO =eet current ob-
ligations. One of our Directors kindly sent the :ecrtars n lean of ;800.2&-
for one ;;year and told `im that he was so inch messed-itt, tn '.ia+ things
had been reneged that he would send 11000 if he' coi-ld stere the mon ay.
This wss very enco nreging under most disheartening circa ms,saces. Two
shares of stock were sold payable by instalments far ;50. each. of which
u..._ ___ __-
u m cne came irtntn ode a few other
small sal as o fencing,gut we did Dot dere to un cur mcchine steadily
Until after ze b__yht a carload of o.9 Wire on tzm months time. about
tae _fiddle of :.ugust. Vince that time tc Vim ,:¢sent, lost'Dereist-
ant offorts have been made without avid to sell sore of our Preferred
`tock in .he a;i�t, bus es is csll known these has. frog. various causes
beer sots a semis iu t\e stock market. and es�ociailr in industrial etocka
that it hes then found im'ossible to dieaese of ac�-.'and it has been only
by
meets •ec oil the n'rnq;,;Reln of ecce. of ry r c'lare twist we have battle
It a rgggenant u e. ....e ss i ser alien.
c. st be borne tc ind that alt o e have made fencin- in June,'
Sul L ugust� we viers not in a cosition to run our chine steadily
until 16th. uctober W` of
Iaacal a4aretus nee coptleted t,
isea.rnauae v of maids. a14 ',h. ::zs too late in
t s ac a u civw' er�ecas working order, and With the one of suY
Tiefent -Orkin- capital to toy vire and pay Wages, we mill be able to run
it steadil-, for the next three -tithe in the m¢n atncture r,4 fencing for
spzing delivery, W]ich can 411 be solo ata cod profit, as the demand is
theSs an the increase, and the greet bulk oY' the raw fencing is put up it
the .,piing,
The necessary e -Daises of t::e '-,linens c}:e:- not ca i,f L_ct_ring, and
thus not esprit. enytniny, ^re a -tout mer month, and the expenses
gran manufacturing r adily, could amount to about .,970, per month,
or only about .170, _.er .month .ore than when. machinery is not Working.
It is therefore"evident that cur Deli' true olds.' is to commence
manufacturing fencing as soon as leans are provi'dea to buy hire and gay
is
running expenses, ani far this -prose naw that the success of our bSale,
secured, your directors recommend that each holder of referred Stock
who has means available for investment should send in subscriptions for
more Steck, and save the necessity of taorrowsry for tile pubpose of run-
ning business during the re ntera months, which `will yield good profits on
fences manufactured for `grin.- olivaryy
It is needless to add twat it ro'ald hove boor, im-ossible to accom-
plish .ihat has Seen Goes if the ,ecr_tar- had not euiing the 15 months
since Septs"ber 1'x)2, devoted his n:Dcle Time to ttne r nage•ient of the
business, under direction of t':e_e cu t: ee committee `Who have held no lc.
than nine cleat n s ,in; ie Prct c �%t c- h ' for -.hick he has neither
asked nor receivedcm,- D :oe)' re rifling sem allowed by
the Laster forhis a vice n„ ,a dation. _
President.