New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-11-04
no APPOINT RECEIVERS.
THE SUGAR TRUST TAKEN OUT OF THE
HANDS OF THE TRUSTEES.

HANDS OF THE TRUSTEES
,rpCE PRATT SAYS THAT HIS DECISION NEED
NOT INTERFERE WITH THE KEoRGAN1zA-
r1oN-LARGE TRANSACTIONS IN THE
CERTIFICATES IN WALL STREET.
Justice Pratt in the Supreme Court in BrooK-
Ivn Yesterday handed down his decision In the
suite Of Duncan Cameron and John H. uieason
against the trustees of the Sugar Trust for the
appointment of receivers. He granted the mouoh
for receivers In his opinion he justifes the
original injunction, but says it has been super
ceded by the publication of the plan Of reorgan-
ization by common consent The trustees should
not attempt to perform any Of the duties which
the trust agreement imposed on them, Tor oy 'hclr
own admission the agreement was Voio, anu any
acts on their part under II would supJec' cne
corporations composing the trust to FORFEITURE vi
their charters They were the mere cus'ooians
Of the property of the trust
The original stockholders Of the corporations
comprising the trust having delivered their Ger
tGcates of stock to the trustees, who, under au-
thorty had issued trust certificates representing
undivided interests in the pool, the original
stockholders were estOpped from questioning the
title of the holders Of trust certificates. The GER
tifcate-hOlderS derived tltle lTou oeoVN-
holders to the corporations, not from the
trustees who were only the executive authority
The trustees conceded that they held the property
for the benefit of certifcatc-hoders and it was
NOT necessary to determine where the legal title
rested The trustees held property which they
were powerless 10 convey and give good title to
or TO distribute to the rightful owners The OBJ
iect Of the trust having failed each certificate
holder had a right to demand that the affairs of
the trust be wound up and that he have his share
OF the Joint property.
The objection that Cameron's stock was not
transferred when he sued the Court held TO be
unfounded, and besides no question was raised
about Gleasons title, and he also asked for q re-
ceivcr. IL not case where majority might
coerce minority into any new scheme OF re-
organzation as the holder of a small interest was
entitled to as much protection as the holder OF
large interest. The only way that the trust
could be wound up was by unanimous consent OF
the certificate holders or by application to the
courts. The protection of the property was the
vital question Should il be used SO as TO en-
danger the corporations or taken by the court
and held intact for those interested? Should it
he left in the hands Of board acting without
authority and subject only to the will Of ma
jority of its members?
III
time appoint a receiver The certificate holders
asked for an immediate settlement The trustees
thought it was not the proper time, as they had
plan of reorganization. y receiver would not in
terfere with reorganization, and with 500 GER
ticatc holders disposition of the property could
be made without one In case Of legal rcorganiza-
ton the certifcate-holders might speedily obtain
their shares, provided enough property was left
in the hands of the receiver to meet the demands
OF creditors and certificate holders not entering
into the new scheme. 1t unpleasant duty
TO take thee property from the hands of men OF
the highest standing, but the General Term had
held that their title to it was void. The appoint
ment would not interfere with the manufacture
of sugar, but would prevent the corporations from
violating the law and forfciting their charters.
1t would be best for all concerned for the public
by avoiding the calamities that would follow the
interruption in the business of refining sugar
through any forfciures for the certificate holders
because it would preserve the property and lead to
a speedy settlement either by reorganization or by
division of the property
Justice Pratt said he would appoint at least
two temporary receivers, unless the plaintiffs In
the second suit should move for decree appoint
ing permanent receivers. Then that might DE
done. Both parties might nominate receivers on
bond will be fixed at the time OF naming the
receivers.
Rumors of the decision by Judge Pratt reached
Wall Street early. They were in line with what M
the bears" have been preaching for Some time
and the certificates of tbe Sugar Trust enjoyed
the chief speculative prominence The tranSac-
tions in them at the Stoc, Exchange were In eX,
cess of the total dealings in railway shares, apu
fluctuations in price. we're frequent and VIDE
The course was downward when the decision OF
the Brooklyn court was announced, and tsle net
decline of the day in tie price Of the stock was
over per cent. Friends of the Sugar Trust re-
gar,e1 the decision as favorable TO the organiza-
tiOn. it recognized the necessity Of protecting
certifcate-hOlders, as well as OF assuring 10 the
public an uninterrupted conduct of the business
Of refining sugar.
The entrance into the situation Of receivers
vas said to be assurance of the validity Of
any reorganization proceedings when completed
and only the enemies Of the trust was any sug-
gestion made of tie possibility Of proOnging OF
market manipnlatlons in consequence of Legal
winding up OF the concern. An earnest effort
will be made by the bankers interested in the
organization and the large holders Of certificates
10 agree upon names for receivers which Will
obtain the approval of the court and the public
These names were not mentioned Yesterday
Edward NJ Shepard said To Tribune reporter:
Judge Pratt puts his decision upon the ground
that 10 is necessary TO any reorganization that q
judicial sale should be had Of the shares of stock
of the De Castro aud Donner Company and the
other companies whose shares are held by the
trustees of the Sugar Refneries Company. lie
thinks that this course should promote and not
retard the success OF tle reorganiza'ion me re-
sic,l control Of the Sugar refinery plants, stocks
of sugar and the hike ,l;cir function is limited
10 the custody of The shares o. >h9ci OF iIe sly
eral corporations AMI the fan conduct OF The sale
of those shares Of stock icr the direction OF the
court Little can he said until after thursday.
when the representatives of the various Interests
meet Some definite action VIII theh nc quioNy
taken