Reorganizing the Detroit Electrical Works

REPORTS OF COMPANIES.

REORGANIZING THE DETROIT ELECTRICAL WORKS.

The committee on the reorganization of the Detroit Electrical Works recommends the formation of a syndicate to raise $50,000 to purchase the assets of the company and $100,000 working capital. It proposes a new company with $400,000 non-assessable stock and $100,000 bonds. Each certificate holder may subscribe to the purchasing fund at rate of $4 for each $1 subscribed, providing he takes also one-tenth of the amount of the certificate in bonds at par. Stockholders and others may subscribe for any amount of bonds, receiving par in such bonds and 75 per cent, in stock. In case of over subscription shareholders have the preference. The syndicate will be prepared to bid at any sale of assets formerly owned by the Detroit Electrical Works. In case of purchase the syndicate will form a corporation, with the above mentioned capital stock and bonds, selling to such all the said assets for a portion of its capital then to issue. In case of a non-subscription to the purchasing fund, the syndicate may use such portion of the fund derived from bond subscriptions as may be necessary in consummation of the purchase. As soon as enough is subscribed to the funds to insure success the subscribers will be notified of selection of some bank or trust company as depository. The committee suggests that subscriptions to working capital fund be limited to $2 for each share of the old company.