Fri 27 May 1808
Printed minutes of a General Assembly that agreed to circulate the Committee’s proposal that each proprietor should give up three-fourths of his shares so that each mortgagee and bond-holder could be given one share for every £100 of his principal claim.
The company in the last four years has endeavoured to disencumber the concern from anything that might tend to cramp their energies or expose them to unnecessary risk or expense.
The last year of the carrying trade being 1805 found net proceeds of £3086 16s 10d,
Resolved to convert all the company effects in to money because the company has a principle debt of £117,125 and a debt of interest of £76,767. So will be unable to pay off £193,892: 10s ever.
Having property at their disposal amounting upwards of £20,000 and after deducting £1491 (a sum equal to £3 10s each for 426 unsubscribed Half Shares) would leave £18,500. This should be divided amongst the Mortgagees and Bond holders as arrears of interest due upon the sum of £117,125 making a payment of £15 per £100 Mortgage or Bond.
So, each proprietor should give three fourths of his shares producing a fund of 1302 shares, sufficient to give each mortgagee and Bond holder one share for every £100 of his principal claim.
The concern thus relieved from Debt and producing £2763 per annum would pay the new proprietors £1 10s per share. Cheapest and best form of foreclosure.
This gives two objectives: first giving the mortgagee an interest in the concern and secondly the proprietor may preserve some small interest in the undertaking.
