No settlement yet in trouble at Detroit Electrical Works

NO SETTLEMENT YET

OF THE DETROIT ELECTRICAL

WORKS TROUBLE.

A DEFINITE COURSE WILL BE*­

DECIDED UPON SHORTLY.

What Louis Warfield the General

Manager, Hurt to Say.

The settlement of the trouble of the De­troit electrical works is still a matter of speculation. None of the stockholders know definitely what shall be done, al­though several propositions have been can­vassed. The first was that Hugh McMillan wipe out his blanket mortgage; that the stock and cash dividends be refunded, and that a new capital be created of, say, $500,000, and that the company begin afresh, under a new order of things; and the second was that the concern be wound up. One stockholder suggests that the company sell out to the Thomson-Houston, the General Electric Company or the Edison Company syndicates, and that the stockholders be given 50 per cent of their present stock in whichever syndicate made the purchase. This proposition has never come before the stockholders, and it is not likely to be en­tertained. What will become of the plant in the future, no one can tell. At the ad­journed special meeting of the stockholders to be held on Monday, or at the annual meeting of the directors, which takes place on Tuesday, a definite course will be de­cided upon; until then, not even the stock­holders can forecast what that course shall be.

Said Capt. Stevens yesterday afternoon: "If the Thomson-Houston, the Edison Com­pany or any of the big syndicates would make an offer to buy out the concern, on a fair valuation, and, further, give the stockholders of the Detroit electrical works 50 per cent of their present stock in the syndicate, I, for one, would close the bar­gain. Instead of my $50,000, I would have $25,000 worth of shares in the syndicate. With all responsibility removed, the con­cern operated by competent men, the in­vestment would be a good one. It would also require to be a stipulation that it con­tinue to be called the Detroit electrical works and remain here. Mrs. Stevens owns the building, the ground on which it stands and the permanent plant, which represent altogether $100,000; so that between us we are interested to the extent of 150,000. A proposition of this kind has never come up, whether it will or not, I can’t say. I merely mention what I am prepared to do in the event of an offer of this kind being made.

W. A. Jackson, who has been in consul­tation every day this week with one or two of the stockholders on the subject of set­tlement, said: "The report that a syndi­cate is likely to purchase the concern is pure speculation. There is nothing whatever in it. No proposition looking to a sale to any established company in existence has come before the stockholders or been entertained by any of them, as far us I know. The chances are all in favor of winding up the concern, and I think steps will be taken to that effect at the next meeting to continue for a time, of course, until the obligations of the company are paid off. That is the situation as we know it."

Louis Warfield, general manager of the Detroit Electrical Works, on being spoken to about a rumor to the effect that a syn­dicate would make an offer of purchase, said that he had heard nothing about it, and that he knew no more than any of the oth­er directors or stockholders did as to the final outcome. "At the meeting on Mon­day," he said, "it will be decided shall he done with Mr. McMillan's mort­gage, in view of the needs of business in realizing capital. Another thing I may men­tion is, that a large proportion of stock is held in New England, it has been sug­gested by Mr. Wells and Mr. Jackson that the stockholders there hold a meeting at once for the purpose of appointing representatives from among themselves to atte­nd the meeting on Monday, and for the New England stockholders. They will also attend the annual meeting on Tuesday. What course will be decided upon on Monday I have no means of knowing."

"As announced in Wednesday's Free Press, you have tendered your resignation as general manager, have you not?"

Yes, on Monday. 1 tendered my resig­nation as an officer and director. The di­rectors appreciated the spirit in which I did so and were of the opinion that my services were necessary for the business, especially at the present time, I have given all my attention to the Detroit elec­trical works and today I am out of pocket as a result. I may say the same with regard to Mr. McMillan. We are both pecuniary losers through our connection with this company. Two years ago I recognized the needs of the concern and made them known to Mr. McMillan, I said that It would require heroic efforts to put the business on a thorough paying basis, and to get more stock. At the request of Mr. McMillan I gave my best services to this work, and we together helped to establish the concern. It is all right now, but we re­quire more capital in order to carry It on. The competition is very formidable, and in order to cope with it adequately we must first be supplied with the sinews of war. A great deal has been said to my detriment in this matter, and it is very poor grati­tude for the time I have given and the ser­vices 1 have rendered on behalf of the com­pany. That is all I wish to say about it. It is now my desire to retire from any official position, but at the request of the di­rectors I retain the general managership until Tuesday, when a new board of di­rectors shall be elected and another general manager appointed. Here is a copy of my resignation," said Mr. Warfield, handing the following communication to the re­porter:

                                                                      Detroit, April 17, 1893.

To the President and Board of Directors:

Gentlemen — I beg leave to tender herewith my resignation as your vice-president and general manager and also as director, which, for many personal reasons, I will be glad to have you accept at once, and in which case I will be entirely willing to give my time and energies as an individual, without remuneration, to your board and other officers as they might find my advice or co-operation de­sirable.

I have never in the past, however, subordinated the best interests of the business, as I have seen them, to my personal interests or feelings — on the contrary, my efforts for the business have brought pecuniary loss to me — therefore, I have no desire to ask you at this time to act upon this matter in any other way than your judgment as a board may direct.

                                    Respectfully submitted.

                                                           L. WARFIELD.