March 24, 1928
PRESTO-TIMES
12
the payroll of the employes of the plant—some $6,500
a week. A representative of the Music Industries
Chamber of Commerce mentioned that the liabilities
were about $785,000.
Judge Knox said he wanted to get from the aver-
age creditors an expression of what they thought
of the plan of reorganization just offered. Several
Morton Lachenbruch & Co., Investment Bank- were called upon and spoke, nearly all favorably, and
ers, to Be Reorganization Managers Follow- others volunteered remarks. "All I can say is that
this is the property of the creditors," the judge said.
ing Order by Judge Knox in U. S. District
Hy Eilers said that he understood that by this plan
Court This Week.
the plant was to be operated by some of the larger
creditors.
A Proposition from Albany.
Some one asked if the Lachenbruch was the only
In Terms Set Forth by Reorganization Managers All offer. This brought out that there had been another
offer—one by Thomas F. O'Brien, of Albany, N. Y.,
Preferred Stockholders of Welte Co., Inc., and
but the receivers had not considered it so favorable
Estey Welte Corp. Get Preferential Rights
as the one by Lachenbruch & Co. A representative
in Subscribing to Stock.
of O'Brien then called for the reading of the O'Brien
proposition and it was read. The receivers said they
The Welte-Mignon Corporation, New York, is about had worked hard until late at nights on the proposi-
to be organized under the laws of the state of Dela- tion, and that they had come to the conclusion that
ware. The action which gave this decision its final this was the only solution so far offered, but if any-
impulse was taken in United States District Judge body had a better one they were willing to sit up
John C. Knox's court-robrn, 12th floor of the Wool- more nights studying on it. Five Philadelphia cred-
worth building, Monday evening of this week, Morton itors were spoken of.
Lachenbruch & Co., investment bankers, 42 Broad-
The plan gained headway as night came on. It was
way, New York, are to be the reorganization man-
argued that if the plan does go through, it's a
agers.
It was represented to Judge Knox at the session gamble toward success, if not greatness, as the men
Monday by the receivers of Welte Company, Inc., and employes behind the new enterprise are very
and Estey-Welte Corporation that their appraisal much in earnest; if it does not go through, every-
showed something like $92,000 in property and $45,- body is through, and at a loss.
000 in accounts receivable. They reported that the
Plan Is Approved.
offer of Morton Lachenbruch & Co. was the only one
Judge
Knox
summed
up by saying that while he did
that seemed acceptable, and that it was "after con-
not much care about this plan, a majority seemed to
siderable negotiations that this offer was received."
favor it, and he, therefore, approved it, with the
$15,000 Cash on Hand.
amendments that had been made.
The receivers reported that they had about $15,000
Estey Unit to Settergren and Others.
in their hands of the Welte money, in addition to bills
receivable of about $45,000. A representative of the
The Estey unit of the Welte Company, Inc.,
opposition to the reorganization was on his feet in the first unit sold as Lawyer Kennedy explained, was
a moment and wanted that $15,000 divided and close purchased last week by well-known piano men,
the whole matter. A representative of the reorganiza- headed by B, K. Settergren, W. C. Hess and E. Ben-
tion movement said that could do the creditors no net Fox, assuring expansion of the Estey Piano Co.'s
good, particularly, as they would get a distribution of business independent of association with the repro-
only about 5 per cent; ''Why jeopardize so much ducing action business and pipe organ business.
larger interests?" A mortgage of $318,000 to a bank
The following is a summary of facts:
was mentioned. A representative of the bank said
The Court Order.
that as the available funds were so low, it might be
Upon the petition of Hardie B. Walmsley and Wil-
as well to have the reorganization plan tried out.
liam Blau, receivers, it was ordered: That all of the
One Hundred and Five Men Stick to Jobs.
creditors of Welte Company, Inc., and all the stock-
It seems that there were formerly about 500 em- holders of Welte Company, Inc., and of Estey-Welte
ployes at the plant; that 105 of the faithful ones— Corporation show cause before Judge Knox why an
mentioned as "key men"—were still sticking faith- order should not be made authorizing and empower-
fully at the factory, preferring to work there rather ing said Hardie B. Walmsley and William Blau, as
than to seek new fields of endeavor in these days receivers of Welte Company, Inc., to accept an offer
when jobs were not any too plentiful. The depres- to purchase the property and assets of the defendant,
sion in the call for the product of the factory came Welte Company, Inc., made by Morton Lachenbruch
in for a passing enlightenment to the court. The
chairman of the board of receivers said they would & Co., as reorganization managers for a majority in
have to pay out about $37,000 within the next week, amount of creditors of Welte Company, Inc., upon
including payment of $21,000 on the mortgage and the terms and conditions stated in the petition.
The Offer.
"MORTON LACHENBRUCH & CO.
Investment Bankers
Telephone Hanover 5600
42 Broadway
New York-
February 16, 1928.
Messrs. H. B. Walmsley & William Blau,
Receivers in Equity,
Welte Company, Inc.,
695 Fifth Avenue, New York City.
Dear Sirs,
Acting as Reorganization Managers, and on behalf
of a majority of Creditors of Welte, Inc., we beg to
submit the following proposal:
The Proposal.
There is nothing to compare
It is proposed that this company will pay to the
with the complete line ot
Receivers of Welte Company, Tnc, for all the assets
of that company and of the Estey Welte Corporation
and subsidiaries, $100,000 in cash upon acceptance of
this proposal and 7,000 shares of the seven per cent
non-cumulative preferred stock.
It is proposed to issue the 18,000 shares Prior Pref-
erence Stock for the financing of the new corporation
at a price to net the company $50 for each one share
The Players are RIGHT in
of Prior Preferred stock and ten (10) shares New
Common sold.
everything t h a t means
It is proposed to issue 2,000 shares of Prior Pre-
money to the dealers and
ferred stock and 220,000 shares of the common stock
to ourselves in connection with the financing.
satisfaction to the public
For a period of 60 days all preferred stockholders
of the Welte Company, Inc., and of Estey Welte Cor-
You will never do anything better
poration will be given a preferential right to subscribe
than when you get in touch with
to the prior preference stock of tho new corporation
at a par of $50.00 per share, each share of preferred
stock to carry with it 10 shares of common stock
upon surrender of their certificates in Welte Com-
pany, Inc., and/or Estey Welte Corporation.
This offer is subject to your acceptance, within
twenty (20) days from date, at which time this pro-
711 Milwaukee Avenue
posal will expire.
CHICAGO
Yours very truly,
MORTON
LACHENBRUCH & CO.,
SOUTHERN BRANCH: 730 Candler Bldg., ATLANTA, GA
Reorganization Managers for Majority of Creditors
Welte, Inc."
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