1674-12 Carl FisherMONTAU EACH DEVE 0 'MENT CORPORATION
MONTAUK, L
•
I S LAND
January 7, 1932.
TO THE STOCKHOLDERS OF .TEE THE MONTAUK BEACH DEVELOPMENT CORPORATION
Inasmuch as certain negotiations whioh have been pending during the past sixty
days, looking toward the reorganization of the corporations affairs and the
conservation of its equities, have not successfully been concluded, it seems
highly advisable at this time that the, stockholders of the Montauk Beach De-
.:velepment Corporation be advised as to.the status of the corporation's finances
• ,=, , ami +Affairs .
Sinpe July, 1929, the requirements of the corporation for operating costs and
.expenses, interest on bonds, and other carrying charges in excess of income,
have,been supplied through loans from, or purchases of real estate by The Carl
Fi her Company, and these loans and purchases to date aggregate in excess
r;of V, 500, 000.00.
tDue to continued unfavorable business conditions during the past two"or more
yeas, The Carl G. Fisher Company advises us that it is not physically able to
make further advances tc,the Montauk Beach Development Corporation, and;the
income of the corporation itself isnot at all sufficient to take care of its
.operating and carrying charges.
date all obligations nave been promptly met with the exception of ; to l
'tt on three purchase money mortgages which matured during 1931, a'* �i which
.exen_sions were obtained. At the present time unsecured current kobli aons of
"'theCorporation, exclusive of purchase money mortgages, aggregate -considerably
less than $10,000.00. In addition, the' company has one note in the amount of
Sr 20,000.00 secured by a pledge of receivables as collateral, given to secure funds
t to effect a reorganization and foreclosire ofavaluable property in Montauk.
On the other hand, however, the income of the corporation has diminished to a
point where it is not sufficient to provide for even.a substantial portion of
the corporation's ordinary expenses, to say nothing of interest and principal
'installments on mortgages and bonds. On the first of .January, there was a
::..maturity of an interest installment on a purchase money mortgage amounting to"
x1$8•,343 .,a�On:the 'tenth of January, there will be approximately $50,000.00 re
quired pay `taxon.' In addition, between January 1st and April 30th, we will
have v 1gus purchase money mortgages maturing in an amount aggregating approx-
imately 150,0001 40 ,some of which, of course, can be extended. There are no
funds sight at� £is time to meetany of these items.
The big • .. �°� ��• f clzLg the corporation, however, is the maturity on April
1932 of its fir'.` Ad 'second mortgage bonds, of which there are approxima'e
2,740,000..of firsts and $1,000,000.00 of seconds outstanding.
'egotiations have been constantly under way in an effort to provide f
meet these various obligations, or to arrange some manner of carrying
a furthdr,tperiod, but so far, regrettabiy,.ther shave been no very encouraging
results obtained due almost entirely tohecvery demoralized state of money
markets.
Of the corporation's sales, which aggregate to date about 02,750,000.00, approx-
imately 02,418,000.00 in cash have been collected, and of the remaining out-
standing 0332,000.00 approximately 0249;600.00 have not matured, leaving a bal-
ance of 082,400.00 which is now due and .most of which can be collected only by
litigation or by trading. In other words; gf a total sales of about 02,750,000.00,
a very small proportion of the total can bepolassed as uncollectable or slow.
.The Directors feel that all the stockholders are quite familiar with the fact
that continued business depression has resulted in severe losses in all lines of
business and industry. This condition has naturally been felt more keenly in
enterprises like our own than it has in almost' any other line of business en-
deavor. Had it not been for the financial support which Tho Carl G. Fisher
Company has given to our Corporation, we vmuld, in all probability, have found
ourselves two years ago facing the same situation which we are facing today.
All the Directors as well as the stockholders who are closest to the situation,
have unbounded faith in the future of Montauk, and are confident that the opti-
mistic prospects prevailing at the beginning of the work at Lontaukcould still
be realized if some way could bo worked out to carry the property until -tile,'
return of normal business conditions.r
Obviously an emergency exists in the affairs of the c
• Directors wants the stockholfters to -be fully informed
cor orate affairs, and invites you to make furthe
tial as to how this emergent;; can be dealt with
it advisable, a general meeting will be ]_led to -di
orporation. `The Board of
as to true conditions in
wiry, as well as sugges-
neugh....stockholders deem
uss the entire situation.
All correspondence in this matter sho SI*be addresse
Office at Montauk, New York.,
the Corporation's
MONTAUK BEAAH DEVELOPMENT