TWO WELLAND INDUSTRIES UNITED IN BIG MERGER

New Concern to be Known as “Canadian Foundries and Forgings Ltd.”

May Enlarge Local Plants

[Welland Telegraph, 27 February 1912]

Negotiations ere completed in Montreal on Thursday for the organization of the Canadian Foundries and Forgings Limited, to take over the James Smart Manufacturing Company, Limited, of Brockville; the Canadian Billings and Spencer, Limited, and the Canada Forge, Limited, both of Welland. The capitalization of the new company is as follows:

Bonds-Authorized, $500,000; issued $67,000.

Seven per cent _, pref. Stock-Authorized $1,250,000; issued $950,000.

Common stock-Authorized,

The James Smart Manufacturing Company has been carrying on business since 1857, in Brockville. Its output consists of all the larger forms of hardware and tools of various kinds, stoves, furnaces, machinery and similar lines.

The Canadian Billings & Spencer, Limited, and the Canada Forge, Limited, have been carrying on business in Welland for about five years, the Canadian Billings & Spencer being an off-shot of the Billings & Spencer of Hartford, Conn., one of the largest concerns of its kind in the United States.

The output of the Billings & Spencer Company consists of automobile parts and fine forgings of various leads, while the Canada Forge, Limited, devotes its plants to the manufacture of drop forgings of the heavier character, such as are used for locomotive parts and other kinds of heavy machinery.

The first annual meeting of the new company will be held in Montreal within a short time when officers will be elected and a general manager appointed.

“Both plants in Welland will be run as before and it is possible that there will be enlargements,” stated an official of the company to The Telegraph on Friday.

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The Montreal financial expert of Toronto, Saturday night, says in last issue:

The man who is entitled to the credit of bringing these companies together is William A. Weir, partner in the financial house of J.A. Mackay & Co. Limited, of Montreal. The upshot of his efforts is that he has given the new concern an issued capital of $960,000 preference seven per cent cumulative stock and the same amount of common, while the bond issue will be but $67,000 of six per cents. Price, Waterhouse & Co. have audited the accounts, and the Canadian Appraisal Co. has reported on the assets, and Weir fixed the capital so the combined earnings of the three concerns for the past year would be sufficient to pay the interest on the bonds, the dividends on the preference stock, provided the depreciation and necessary write-off, and leave rather better than three per cent on the common stock being issued.

As for the comparison of assets and capital, the actual surplus assets of the three concerns, as reported by the Canadian Appraisal Co., exclusive of good will, trade marks, or anything of that kind exceeds the preference stock issue. So that, whatever may be the future of the concern, at least it seems to be getting off with the head reasonably above water. The underwriting met with a good reception. J.A. Mackay & Co. having entirely disposed of it in two days, and a large quantity of the whole having been taken up by the firm.