(3 of 3)
The reorganization plan last week included doing away with the executive committee of which Mr. Dahlberg has been head, the establishment of a finance committee and of a five-year voting trust. Mr. Dahlberg is not one of the voting trustees, although Brother Carl Frederick Dahlberg is there to represent the Dahlberg holdings.
Approval of this plan followed by one day the second receivership suit. It was brought by William H. McFetridge of Chicago who says he owns 50 shares, is also suing for other stockholders. He charges that at the time the company was formed Mr. Dahlberg & associates made $10,000,000 in selling the new company land and equipment. In addition to similar charges, he says the company is hopelessly insolvent, cannot meet its obligations.
Whether this will turn out to be the same sort of suit as many another brought and dismissed this year remains to be seen. To the men reorganizing Celotex's affairs it was especially annoying, for however groundless a suit may be, it has a psychological effect on creditors, investors. Celotex officials can point, however, to the fact that they are raising more than $500,000 through the sale of stock, that the new finance committee has set up a $1,000,000 revolving credit fund.
*During the funeral of William Cornelius Van Home, second president of Canadian Pacific Railway, most outstanding of its builders, every wheel in the vast CPR system was stopped.