Publication: The Electrical Engineer
New York, NY, United States
A SUIT AS TO FINANCING THE DETROIT ELECTRICAL WORKS.
A special dispatch (if March 28 from Detroit says: — Two years ago the Detroit Electrical Works, of which Hugh McMillan was president, became financially embarrassed, and a circular was sent out to the stockholders, many of whom lived in the East, saying that there were only two courses open to them, to submit to foreclosure of a mortgage for $185,000 held by Mr. McMillan, or subscribe more capital. The stockholders were unable to supply the necessary funds, and the works were sold under foreclosure, Mr. McMillan bidding them in for the amount of his claim.
Mr McMillan then entered into a contract with William A. Roland, of Boston, and Frank A. Barnabee. of Providence, to recapitalize the company and enter into a partnership. By the terms of the contract, on the reorganization of the company Mr. McMillan was to receive $200,000 in preferred stock to cover his $185,000 interest in the defunct concern, and was also to receive $350,000 in common stock, which he was to hold in trust for the old stockholders. After making the contract, the Eastern capitalists investigated the affairs of the company, and, finding them unsatisfactory, concluded to stay out.
Mr. McMillan assigned his interest to Louis Warfield, secretary of the company, and William A. Jackson, who brought suit against Boland and Barnabee for breach of contract. The suit was ended in the Wayne Circuit Court this morning, and the jury awarded the plaintiffs a verdict for $283,750. The case will be appealed.
|Keywords:||Detroit Electrical Works|
|Date completed:||January 18, 2011 by: Elton Gish;|