New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-02-17
INFORMATION Is WANlED
EQUITABLE MORTGAGE COMPANY TRoU-
BLES.
goHDHoLDERs ASK JUDICIAL EXAMINATION
or THE AssETS-MANY MILLIONS
TIE RECEIVERS PROPOSE RESUMPTION

OF THE AssETS-MANY MILLIONS lNNoE'HD
TIE RECEIVERS PROPOSE RESUMPTION
Charles y Fowler and James NJ. Clifford who
were appointed by the United states CIRCUIT .o"'
e., this civ last summer as the receivers VI .'io
Enuitqb.e Mortgage Company, sent III ~ -
last 10 the holders Of the Hi@1cp OF H. -,
bonds a circular asking the assent VI H"1" ,rt,
holders TO n proposed plan OF 7es'',' ~" 49,.
proooeluon was that the debcn,nre holders !" ~
and foreign countries surrender the' ~,
turing between September /. 1898. ana req. u"'y -
1874 and receive In lieu thereof scrip o. t'ie 0o'
many rayab,e ten years hence; that the YIN,
the maturity OF all debcnture5 De -, ~
March J. 1894 that the interest on '"e D'"'
sc,la1 down 20 ; per cent. OF which per cent
should be payable In ten-year scrip anu ",' -.
company should not pay DIVIDENDS !" "
holders while any such scrip was cu'S't''''5
InO,i;lingness 70 agree to this plan q resuip'o"
appcars - have developed among cr''"'" -
American hondholders. both on accom-. o. VIM
they say they have recently dlscoVereu w.
gard 10 the complny's past management anu ,,
ac,ions and also because Of their alleged ln"p'S
=, lcor, from, the receivers the present cohul.lo"
Of the COMPANY and the value OF Us asse'S
Land Title and Trust Company OF fn''' n''''
through Henry VI. Sackct ana 'hhr'e' M"
Bennett it's New-York solicitors mas o's1" 80.
ccedlngs in the United States circuit our - -.
own behoIf and I'm behalf Of all other pohInDldr -
similarly situated. to secure an - esc,,r
direction Of the court Of all the BOOKS au ~ A.,
INV, he actual financial situation before any pan
OF resumption - adopted
WHAT THE PETITION DECLARES.
The motion papers in that proceeding Were hleo
with the clerk Of the court by sackett q p''"I'
Yesterday. but the hearing OF the motion 'o' ','
examination Of the company's affairs has ben ""-
,,r,,o1 - February, g. The Land Title ana trust
Cor,nany in It's retitioD sets forth taaf II mas lo
, number OF years hcp certain OF the BONDS iSSu@'
by the Equitable Mortgage Company as trustee ~
the Munro estate in Philadelphia. and mat s.'e, -
millions in such bonds Of The company s, @' ami
other individuals in Ph!ladeiphla. - he an
neighborng places. that few DAYS 49,, ;rc1,e-
ar ~ annoinied ancary receivers In fhia-
dc,1hi9 inc Court however nng an olinio" w ~
%@lgM ~ sac Former n presdsn and Mr. effort is
general counsel because thry III ,ot ,unrr,ye of
:ba rraciica ~ appointing individuals 10 c.,-e w
The business OF insolvent corpora, 81 -, en-
dnct and personal responsibility might therefore
be subjects " investigation ..i,, ~ the
Tho netltion further rccites the rrccipl ~
circular containing the proposed plan o. iii'
and balance sheet mode ny ne 80 Tsen unable
- oNtaiY any further Information from -,
ceyers respecting the hHsine'. a.atH ~ or
r. pr,san value Of its aaee,s and Htni.'.,' tbHt
cep; wat , was fs ,hadelpha coun,d al
49,. 81 ,iihzel 'lcly throug1 lie NeH-l ork o3uh5 81
~ he rorm!.icl ~ nav" an 'Vtm.na ion mao ,1
IN cx1crt OF IT," books. .eclr'utS' "a, Iii
business methods az thc COMPANY D, 10, hic%
hr, could decide ~ 20 the plan of rriuuill - ~
he receivers refused although orr "' '. 80
aim.t'ci tAal b. i' b'aiboi.rs oafor
tuu,y % examine. tao c,5'e'., y a.. ronn'y's
r,nls had Informed fae petitioner tH'i ih'' ~'s'
dcslr,i 80 have such cAunHiN'"-
THE AcrIo>s OF IRE inE%T FOWLER
l. f. also alleged IN ;.e rc'l.'n tha' 'n' com
PANS capital stock was Increased j." '''''
f.a
az, from about $1,000 - Sl".''' '"d' '"' i'
den, ~ the company Ms Fowler. n'" o." 81
~, r.c.,v.ra and th. directors. - whom g." "a'4-
noes vas 10 he r-comm,tcl. unde- a." agreement
Of resumption seemed % have ,0s' me ',l''', ;
during a period oi ~" .,,...,.. w,..
,ss.|l by tho company. over ia' HfHtiL "' 'l
Fowler. representing tnai ,nc emu 80 s,'-.,. IN
pany WAS intact AMI ma h'ir VS. %. ,,,r.
al liton II tVrpn wher-'9 w.ihh . SD.
thereafter -, c}inp"n{ pr,'i,.o - ra.v i.ss ana
six weeks bcf,rr the RECEIVERS "ri. 'li
-; mo e,,rknoii crs statement rcc.uus tne .,ct
lion u a dividend hy tne company fri 'h' ''ii
n" . Gl sS am ai iha, b. F,r ami e@ o-
directors declared 'his ."tii .Yl "" ",nh .-
m,i,y ns.incI tn ac'. and ~I;h .t. "'' "
,a4, me- COMPANY was o; the TIN dangerously
rbe Circular 81 the receivers setting forth H."
rl,n u r--umuti0n is appealed - iA' i.,l'..., -
4 !, s's',. sSoar,nan * sterling auI Edward II
II Gibbs. their counsel II says t"". ln' ''''pt.,
10 Yf
SON that Of 20 amount % ans falling cn, ~
30 ,-h. months preceding o." appointment Or ~
ccivcrs. nearly 81 pr cent wee not pan "','r o'
.b,. falling ,l.. dur.n@ d." last iHI'' "i t"'-'
months 81 I,r cent remained unpaid inft -" CON
,'.,,. n4. w 'nnn it, books u'tr.t f"'l 'I'n7t
i"r, tcaro.a.iug sl3-f.iN g. and 'nli = - Do
ul..i tfa, resumption o. business nni'r ihr e.
,,,,i rlr ,W result In such protection ~ nll 10.
are.ts ~ to company as 20 insure INC @'lrlt g..
Tho trircfpal tho earliest lo4Sh.' i'l t}'ir', Cd.
-. i,r,re.rAl the highest rate y into r'-f Mh.'.
c1ui plssb'y hc paid ana tn best care '' we "s
SOS AT the least expense.
4 cIAScE FOR ALL BoNpnoLpEHs
Tho answer = the receivers To- IL" petition for ~
examination has not yet been n.od. Mr. 3aekeit
ono ~ the counsel FOR the Ph!'adelpha TIL" ana
,r,.st a. ,orauy. said yesterday that large number
~ o.hcr bondholdcrs had Indicated 10 hin ana 2"
vCuuou " Porter the Ph.latelphia counsel VINO
H. - ,.1lu.. LAWYER 81 that city. their Intention t
i.l, IN tho application and that wiihin a r." ga
!, number W the Stockholders OF tar conIAhy. YIN
Isd learned OF the motion. had also expressed u
u.lch I, unite with them 10 secure VI" eAiHI'h"'l"
Of the companys condition In making ing p,rs@t'
,',tinn ne pIrpOse was. Mr.. Sackcit sa'i 10 en-
i' az boudhodors I'm Ph!,ad 'iphit Ne" York or
'-e,yb,re who so desired. 20 Join IN ana get IN,
benefit ~ such examination as might DE "t'rrei -
the court