The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1895-03-28
PLAN IS SUBMITTED
LOMBARD DETERMINATION COM
MITTEE REPORTS.

They May Observation-Disclosures to
Fund--Transfer TO New Company--De-
faulted NIortga Absorbed--Loss Ger
tificates for Claim Holders-Lombards
Business During its Last Year.
New York, March 1.-THE reorgani-
cation committee Of the Lombard In
vestment company, composed of r. H.
Rochester, chairman, X. L. Walker,
secretary, and George Burnham, jr..
treasurer, have submitted a plan OF
reorganization to the stock, mortgage
and debenture holders Of the company
The committee says:
I'VE propose to unite all eastern and
western agents in a company, to
whose preferred capital stock they will
be permitted to subscribe. and to which
they VIII be asked to transfer, wheth-
or subscribers or not, all the collection
business they may be able to control.
To such agents VIII be paid, as now and
always, Il commission on the business
done payable as collected. You are
given the privilege Of subscribing 10 a
fund 10 be used by the committee in the
purchase OF the general estate. Your
substitution VIII be received at the
rate OF not less than ten per cent, nor
more than - per cent of your holdings
Of Lombard stock, and ali Of your prov
able claims against the company. :"
far as YOUR subscription Oh claims is
concerned, it Is payable in such claims
as you may prove against the general
estate.
WILL THEN PURCHASE.
When subscriptions have been made
the committee VIII then proceed TO pur-
chase the general estate, il possible, at
the minimum price, paying therefor,
partly in cash and partly in statements
against il and after purchase viii trans
fer tie same TO the new company ~
lis actual appraised Vaiue, receiving
from the new company such actual
appraised value, payable in its pre-
TerTed stock to the extent OF the price
paid by the committee and the balance
in its common stock. The preferred
stock viii be at once prOrated among
subscribers and the common retained
by The purchasing committee until as
hereinafter provided
''The preferred stock shall carry a
six per cent cumulative dividend after
payment Of which the balance Of the
profit would go to the purchasing com
nittee as holders Of the common stock.
THE company would then proceed
TO realize upon the general estate, put
ting into its working capacity an
amount equal to the preferred stock
issued to subscribers to the purchasing
fund, so that the value Of such PREFER
ed stock is secured, and applying the
balance TO the retirement Of new de-
bentures.
All subscribers TO the purchasing
fund, whether in cash or in claims
should be permitted to transfer all
their defaulted or doubted mortgages
and debentures 10 the new company at
a proper cash price payable in new
debenture bonds carrying ( per cent
interest, as collateral for which deben-
ture bonds and interest the mortgages
and old debentures themselves would
be held by Il proper trustee. These
should be realized upon by the new com
pany as rapidly as possible, and the
proceeds applied by such trustees in
retirement Of the new debentures, SO
far as the same have not already been
retired by payment from the balance
of the general estate.
LOSS CERTIFICATES
Such assigninaS claim holders hav-
ing thus far suffered a loss equal to the
difference between the face value Of
their defaulted claims and the price
paid for them by the new company,
should receiver from the new company
loss certificates without interest, to
the amount OF % per cent of such
losses
The purchasing c0mmitte, TO whom
VIII be transferred all of the new COM
mOnstock and all dividends thereon.
shall. just as soon as the last new de-
Eenture and loss certificate is paid off,
distribute the whole common stock
pro rata among present Lombard stock
holders who shah have joined in the
purchase.
An assets and earning power Of the
new company after payment Of divi-
,lends on the preferred stock, which
up to this time has been applied 10
the benefit of creditors. is now appro-
priaJed 20 the old Lombard stock
holders
1T is reported that the Lombard
Investment company, in the last year
of its business, when. as you know. it
had been diScredited and when the
general financial condition Of the coun-
try had been unfaVorable earned $20o,-
COO
1T is also reported that the Concor-
dia company earning commissions only
ON renewals alone, has during its re-
ownership not only met its current ex-
NeuSeS. which were substantially
equal to the Old company. but also in
terest on its S250030 Of slfh-Company
mortgages, and on its SEQ, 600 debt due
10 the general estate.
There are now outstanding about
g 900 moTrCa CCS. of an average face
value of S1.U09. bearing 500 annual in
Jsrest each. The agents of the Con-
Cordia company have turned in about
S25.05a00G out of the S&5. 600 mort