Legislative Assembly

“Mr. Alex B. Campbell, Premier of Prince Edward Island,

Charlottetown.

Dear Mr. Premier:

In our recent telephone conversation you asked me for. my personal proposal and workable solution to the financial and operating problems

at Georgetown Industries.

I sincerely trust that you personally believe I would like to see the problem solved as the operation has been my immediate concern for many years and I do still have faith.

I up reciate the urgency of the matter in view of the desireability to have Gu f Garden Foods reopened at the earliest possible date.

I am also very concerned about the workers and members of the staff who are still living in the area and who have no employment at the moment.

The rights of all creditors must be also considered. I would urge your prompt consideration and comments on the following:”

Now this is the 19th of January, and the lant closed on the first of December, and the other plant was taken over the first of anuary, which is a lapse of six weeks from the time the first plant closed. It takes the Government six weeks to get in touch with Mr. Moe evidently, Mr. Speaker.

“In our telephone conversation we discussed briefly the merger of the Bathurst Marine and Gulf Garden Foods Limited. A better solution perhaps, would be to sell all Bathurst Marine Limited shares and Gulf Garden Foods Limited against shares of the latter company and it would thus become a wholly owned subsidiary of Gulf Garden Foods. The ad- vantages of this intregation are obvious. You can forsee substantial savings in administration and a better and less costly utilization of the facilities of Bathurst Marine and the services of the Gulf Garden Food plant complete.”

Honourable Alexander B. Campbell: Mr. Speaker, I wonder, in bringing attention to the House of this particular proposal which was given to the Government at the request of the Government by Mr. Moe, whether the honourable member is prepared to state in this House that he feels that this is the solution to the Georgetown problem '!

Leo F. Rossiter: No, all I am pointing out is Mr. Moe’s proposal; evidently you didn’t go along with it.

Honourable Alexander B. Campbell: Well, do you think it is a proposal accept- able to the people ‘!

Leo F. Rossiter: As we go on farther we will see and then we can compare it with the one that you accepted.

Some Member: You are going to make your announcement and we will see how much difference is in it.

Leo F. Rossiter: “You asked me if I thought the creditors would be willing to become shareholders. I feel that an offer consistin of partly cash and partly stock would be acceptable to the majority o creditors as part of the general compromise and the following might be feasible.

Stock with Gulf Garden would be increased and changed into a Class A and Class B Shares. The present shareholders of Gulf Garden Foods would become Class B Shares, and the new Class A Shares would carry preferential, non—communicable dividends and would be redeemable. They would also, as Class A Shares, have the right to elect and agree upon_the number of directors. Ordinary creditors would acce t a com- }Siromlse or proposal involving conversion of half the claims 0 Class A

hares while the other half would be paid in cash."

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