The sun. [volume] (New York [N.Y.]) 1833-1916, 1890-07-30
FIVE PER CENT. On SjO,OOO,OOO.
WRECK or H. u. HOLLINS e CO.'S
tSTOUNDING SrGdR 7RUST IDEA.

H.orrnnizntInn aud Proposing to 10
the dob Themselves ut rrice tina,
startled Reputable Hnnkers-BrArinG
tho stock Wien Hops Faded, aud
Cnueht Heavily short Yesterday ON the
Ei.e- Meanwhile the Trust Plan -
Maturing, md the Attorner-UencrarS
Representative Pronounce Ii Legal.
Wal street had tragedy yesterday, tho like
n, w'Ich has not boon seen In many day.
gugl Trust certificates advanced from :; = to
H., aud closed very strong at tho latter price.
Tho mere statemcnt Of an advance in sugar
ner,ilcaios 10 tho average citizen MAJ posi-
biz he without significance, II was perhaps
without amazing interest to tie average citl-
yen in Wall street From tho day that
tho certificates have been dealt In on tho
s,oct Exchange, tie fluctuations in them
hays been rapid and pronounced, but 1t
Is believed that tho fluctuations yester-
d,y had a greater significance for cor
tain persors than any hitherto recorded.
The advance was particularly OF Interest to II.
r. Uolltns & Co. 1t was OF equal interest TO
LAWYER John r. Dos Tassos and JOSEPH ;.
Auerbach OF the firm OF Lowrey, Stono ~
Auerha,h. It was OF inc dental interest to the
banking firm OF SegmNn Co.. and other
confidential friends OF Henry b. liollins and
Lawyers Dos PaSsos md Auerboch, besides
the Hon. Larry Godkn. editor OF the Erenih0
Post. The fluctuations in the certificates this
time meant q good deal and before dusk came
people cognlzant with the situation were very
we'll aware that II. b. HolIns 4 Co. aud their
friends were on the sad side OF the fence.
When the Court OF Appeals handed down tho
decision against the North River Sugar Eeln-
ing Company. which decision at he same time
practically wiped out the Sugar Trust as a Trust
organization, the managers OF the Trust recog-
niZed that the decision applied 10 every reun-
cry In tho Trust. There was no disposition to
prolong the legal fight But what to do with
property capitalized Mt $5O,OOD.O0O the man.
ayers OF the Trust were not quite prepared to
decide. Facing them at the time was an in
junction granted by Judge O'Brien which pre-
vented the transfer Of tho property TO any other
State, and also precluded tho payment OF any
dividends 1t was said yesterday author-
tativey that even with this complication
the managers OF the Sugar Trust we're in SYM
patty with Judge OBren's Injunction. There
was no desire, it was asserted to sneak away
TO Connecticut or New jersey, and If possible
escape liability by change OF base. But while
these deliberations were in progress the Cen
oral Term reversed Judge O'Brien's decision
and vacated the injunction. The managers OF
the Sugar Trust then decided that they were
FREQ to go ahead and do the best they could
for the certificate holders. The property was
there. its value had not been diminished by the
decision OF the Court Of Appeals. but an abso-
lutte reorganization OF the Trust was demanded
by this decision.
Then it was, according to competent author
ity. that II. b. Hollins & Co. inaugurated plan
for enrlching themselves. The confidential
lawyer Of Mr.. Fl. B. Hollins Is Mr.. Joseph S.
Auerbach. Mr.. Auerbach is in close relations
with Mr.. John r. Dos Passos. the confidential
lawyer Of Mr.. F. o. Matthessen a Director in
the sugar Trust. These two lawyers with II.
B. Hollins, scented big money. They interested
the banking firm OF Seligman & Co.. and. fur
thermore. they submitted, 1t is declared, q plan
to Mr. Matthiessen by which II. B. Holllns Il.
Co. were TO be made the agents OF the Sugar
Trust reorEani1att2n. II Is stated that they
table banking firms with the idea OF Interest,"
Ing them also in the enterprise. Hollns and his
legal friends 1t is az erred salt that lheJ would
the capital stock OF the Sugar Trust-SjO.UOO.-
0g4 THIS would put into their pockets
Kidder Peabody & Co and the other bank
Ing firms that were visited refused. according
t. report. 10 engage in any such enterprise
Inns and his legal friends that tho charge of )
per cent. was Unprecedented. and would not
be countenauced in " all street, or justified in
financial circles. and they absolutely declined
70 have any Negotiations with no!llnS AMI MS
wotds highway robbery were used as de-
sscr!ltiye Of Ne per cent sfhemo II was
the reorganization Of the sugar Trust would
Be agomparatiyeiy simple affair. Az that liol-
the old certificates for the new ones through !
the cntral Trust Company, the recognized |
depository Of the sugar Trust. and OF he GER
ti1cate holders. For this, business no reDutpbIe
banking firm could bly, charge more than /
h,Eer cent; On the capital stock OF tho Trust; /
lees which could not possibly amount TO more !
thAaniiS5v,090, should be deducted.
fact that MIR. Matthiessen had listened to the |
Arguments OF Mr. Dos Pnssos influenced them |
TO believe that SIr Mnthic-sen coincIed with |
,he'r views that s2.5Uo,upu Tor reorgauiHng
the property was not too steep.
Al. this time he directors Of the Sugar Trust /
We're consulting as 20 the. best and chcapest |
meeting Of th9, direct RS for last Friday, whom
ttlelr memorable circular 70 the certificate
tapideEs was issued. This circular Sets forth
adds 4'''''''' ''f "'n''NE ~ 'H0 tU''' Nnu
SSs' gI. res! Win tie ,rg.tss suGh to tax. tho
fsIf a@,drrs and largely ntsrsLs 10 tho property AID
a5y SnS 5efy ARE sSo S b
SD, A%PgT@'st Il possible, ~ al Gtttidea.s ho den,
y .p ~ tsnaen NH s least possible expense de-
iS q: : !na 5s ne @'PH;?p
c,'Hef IT r. - Mdt.lleHen j H. IN mas JOtn II, |
hahs. ", and A StuTbberg together with such
pAuEets an ~ mAE select be appointed q cUmIntes
Htnr Ger lhcate holder. wIth.tuI power repre.ent
a aIen u no pending proceedings and 10 form
kSnhauOh Tor tue pnrIos" OF protecting ito property
enu promoting the interests Of the certificate holders
Atc.I'iheat- holders VINO favor tins proposition and
ssne 70 COZ crate VIA the Undersigned III plan Of
ttstE-Ta'lon may send tlsr certificate. wIih trans
W. ONE central Trgs. Conn any or Now York ac-
eeculel - N|''
,dae Isnra Trust Comlany viii issue in leu II tho
TItHcA'es "i Tie sugar ReNHeTies tnmnary deposited |
,H nn r'lllrat"s wir" will be ne.o!atle with tho
Iaei,lV a. tho present cerhcRts OF the Sugar
uIhls Is signed by Theodore A. llayemeyer.
anyhIy y; llaNemeyer, j. o. MatthiGssen. JOS
sPh b. Thomas, John T.. Searles, Ir., julius A.
WHF-oergi John lMlgenson, John l.. Parsons.
Ccbins!Rm DicG, William +. Aa'emeyer and
When the Hollus peonle and their LAWYERS
sST ta4' W. Hatthiesscn had GO hi eyes oIcn
M ~! Gsl gone In with his cn.dirrctors in an Of
~. 70 have III" Trust reorGanized with the
c.s't possible EXPENSE to tho ,ertIlcaiO hold. 4
M Eey We anna Oh and CONSERVATION Was
ts,mt RANK As iurtheT disaster they |
IsInei ma tho liavCmeyers had rot wind OF
t tfSsF Isr cent project aud had deca ed that
nnes Roii hayc moth NJ to d Whatever with a
tcss%nI ,,htion that would cost the certificate
h..t' moro ihnn 1! per cont. # that. In
- VIZ IA oWcHerg ard Mr. hatthiasuen M ,