New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-07-10
TIE PLAN PERFECTED.
c,NrzATION OF THE EQUITABLE
MORTGAGE COMPANY.

MORTGAGE COMPANY.
,ns OF THE CONCERN IN EXCELLENT
HOW THE SCHEME OF 2E-EsTAB-
,,sunENr HAS BEEN CARP,ED OUT
THE LAST DAY FOR CECEIvING
TIE CONSENTS OF sECURITY
HoLDERs-
r. Contamination OF the Equitable Mortgage
ua,v which went into the hands Of receivers
0'".r last with liabilities of about Sl6OOo,Un.
:" r r,ct,cally be completed to-day. and Is already
or,ced by those having 1t In charge TO be an
Ped success The business Of the company was
s,osv in Western mortgages. against which, as
m,aral II issued debenture bonds In series or
.n,no each. through local trust companies or indi-
's.l trustees II did an enormous volume or bnsi-
WV =, this character the outstanding bonds at the
~" - when the receivers were appointed amounting
ho,t & 800 900 in this country, 100000 In Eng
W and nearly sl.5OOOco distributed elsewhere
BUSINESS depression of last year led TO the ap-
-..,ment OF the receivers. This was made IN the
-, States Circuit Court in this district at the
..s,spce Of the New-York Security and Trust Com
- the chief trustee in the issue and sale OF
-. adventure bonds in America. Charles ~ fo"ier'
.,s nresldent of the mortgage company ana james
A. clifford a well-known lawyer OF TINS cry were
.uas as the receivers by Judge Shpman AS soon
The receivers were aDle 10 pun bIc oiA"''S Va
-. comnany sufficiently together plan OF resump-
.o, was formulated. with their approval ana the
-, NJ the stockholders Landowners and other
od,,ors was sought. This. however, was soon
abandoned for the complete ana e1ectud'
scheme OF reorganization which has now been car
,ass 70 successful issue Charles b Fairchid' the
,-ssident OF the petitionng trust company was
',.o,.d chairman Of the Reorganization Committee,
rI,b A. B. Hepburn and George Coppeh as MS
oc,,.as w W. Miller. OF the law firm or Horn
~,.ar Rvrne & Taylor has acted as secretary OF
the committee
While these plans were taking shape and oetore
.,o receivers had filed their inventories with the
c,ur certain OF American bondholders took ac-
ZION for the purpose Of enabling the creditors OF
49, oor,nanv 10 form an Independent judgment as
:, the wisdom Of the proposed schemes and the ao-
disability OF asserting to them William W. for'er
N Philadelphia. and Secke;t & McQuaid; OF ms
c,v as counsel for the Philadelphia Lana nus anu
Tryst Company and many other holders OF tle
companys securities made appncatom ior onT Npf
noIntment by the United states circuit Court "
an accountant make an independent examihsHSSn
Of the books securities and other proper'y o, ,
company in the hands or the RECEIVERS anu a1d
10 ren3rt thereon the Court. The receivers dIu
no, oppose such examination on me mems fd rnin
Judge Lacombe. but asked that ~ be uelerIeu uis
sStsr their accounts were filed Tnat oeins per
rn,,ad the receivers. upon filing their scheduies;
nrwed on their behalf substantially tne dppIJISS-
,on that had been made by the petiti0nns oonqnou
erS J.use tbst The expert accountant should be
named by the Court. rather than nornthaTu ~ 'le
parties and appointed F. K Horey' OF inns 0''S' %
sU TSe auditors work began in April and was Just
a"haS las. week IL has been done eXhaustiNeiy
nns conpjetely Mr.. Horleys report win the
fully sustains the accounts nlcd by the
sensvers 10 March ! and makes gratifl ing snow
re- ~, ne company's affairs. The accounts OF the
ns ~. as died IN court, made the amount or
.be assats little over $lsOoOOo and or the haDHlue
nv, slS 900 900 The auditor finds the amount or
90 eesats 10 be greater by several hundred thou-
tns Sensrs tban the receivers reported. and the
,ah1,,,tsa about the same. Mr.. Porter and Mr
Sacke,t as counsel for nOn-assentlng DohdhoIue'S,
naSs an examination Of the report as soon as II
WIS given 10 Sherman and Sterling. cOunsel TOT
their clients informing them OF It's faNoraole cnai-
acier and advising the immediate sendlng OF tneir
consents 10 the reorganization scnene. ms pan
e therefore left without any substantial opposi-
ZION and with the assen;s OF nearly al. the Anlerl-
can bondholders So far the English creditors
ean concerned while large majority OF them have
assented the consent OF the Englsh courts VIII
frs, have 10 be obtained before the scnerne can
he carried out. Practically all the Dutch holders
Of securities have assented. The ReorganZaton
Committee has fixed to-day the final period FOR
receiving assents. but the consent or all IS De
sired IL Is probable that any bOndhoders sendinS
in their securities few days later with COCA ex-
cuses for the delay will not be shut out $50
The reorganiza ton has been perfected with great
skill by the committee and its secretary. Many
difficulties overcome and countless objections
met. A charter obtained for the new company
from the New-York Legislature that gives the
authorized 70 the fun board OF directors OF
twenty-one members. To these will be given more
than nominal supervision Of the company
affairs And IS said by those Interested that ne
board will SO thoroughly represent the various IN,
terests Of American and foreign creditors that all
will be more completely protected than under any
plan OF resumption by the old company that could
have been devised