The Portland daily press., 1897-12-28
SINGERLY WILL PAY ALL.
Philadelphia Mans Arrangement
With Creditors.
RECORD STOCK WILL BE ISSUED
TO MEET DEMAND.

|
Creditors and Accepted-Mr. singerly
Will Continue to Act as Editor of the
the Paper.
Philadelphia, December 27.-The con-
ferees selected to formulate a plan of
settlement of the affairs of the Chestnut
Street National bank and the Chestnut
Street Trust and Savings F1nd company
of which VIM. M. Singerly, proprietor of
the Record was president, and which
closed their doors last Thursday, tonight
presented the plan for the consideration
of depositors and creditors.
| The chief measure suggested is the is.
suence of Record stock to secure the
creditors. The plan is prefaced by a
statement that sit must be clear to all
concerned that in no case can creditors of
the bank, trust company, of the pulp
and paper company and of Mr.. Singerly
himself, realize more than the total value
of the assets and rights Of these corpora
tions in addition to those of Mr.. Singerly
individually. No matter how protracted
or expensive possible assignments ard
|
cannot receive more than the total of all
assets less the cost and expenses which
will be incidental to their administration
under what will he the most expensive
form of such administration. The fact,
however, not at first sight so obvious,
though it more and more impresses itself
upon us, is that owing to the peculiar
nature of the properties to be handled,
lack of good Judgment in their manage
ment will result in their netting the
creditors less than the present, and
probably of much less than the ultimate
| value thereof.
''Iu is believed that if Mr.. Singerly will
continue to give his entire attention to
the development of his great paper, the
peculiar qualifications which enabled him
to build up a property earning, it is
stated, in the fiscal year 1896, 1910, 600,
and earning also, it is said, In the last
seven years an average annual net earn
ing of $243, 900, viii enabls him to do
what not merely will be impossible under
changed onditions-namely, to maintain
the present great value of the property
| but also to increase it.
This plan, will of course, be greatly
aided by Mr.. Singerly's insistence that
everything possessed or controlled by
him shall be promptly, without legal con-
test, transferred to the managers to be
| applied TO the above purpose.
| The plan provides that the capital stock
| of the Record Publishing company, or of
a company to which its assets shall be
| assigned; shall be fixed and issued to an
| amount necessary to give all creditors in
| class A, par for their claims in q stock
preferred as to dividends and principal
which shall bear six per cent interest
cumulative; and all creditors in class b,
| M fnf h0i aIuir, iytu
five per cent cumulative stock, also pre-
ferred after the first preferred stock, as to
| dividends and principal and all creditors
| in GLASS per stock of said company No
encumbrance against the Record Pub
fishing company's property is to be
created without the assent of the holders
of two.thirds of the preferred stock for
| the two classes. Glass A shall consist
of asserting creditors to the extent to
which they may hold the liens against
the Record Publishing company or pre-
ferred or city claims against the bank OF
| trust company, or persons or corporations
willing to advance new moneys to be ap.
piled, with the best discretion of the
managers, in the furthering and bringing
| about this reorganization
| Class B shall consist of holders of
| claims against the Record or of claims
| secured by this stock. In case of any
doubt as to the amount or actual ex.
| istence of claim as being q valid one
against the Record, the managers may
| finally settle the amount and status of
such claim without liability to them
| selves; or, if their decision be adverse to
| the status of the claim as one against the
Publishing company, the holder thereof
may insist upon judicial decision of his
| status
other than those above specified, or any
of the parties of the reorganization of
whose affairs 1t is now contemplated may
| become necessary to the success of this
| plan.
| A note is here inserted stating that
| there now exists ST, coo, COO of common
stock on the Record Publishing company,
subject to the prior lien of 500, 900 of
mortgages. After "A full examination of
the property it was recommended, to
syndicate recently formed, that this stock
issue be increased by the Issuance of ST.
000, GOO OF preferred stock. making tho
total issue IS 000, 900, the s700, 900 of
mortgages being intended to be paid out
| of the proceeds secured from such new
issue. under, these conditions the S.. 900 COO
of preferred stock at par was oversub-
scribed for by the capitalists and bank
ing interests of Philads lphia The man
ayers of the plan are to make distribution
of the stock within thirty days after
sufficient assets have been received to
|
Any assets obtained by the managers
from those having claims against the
bank in the distribution of tho assets of
the bank, shall be applied pro rata to the
purchase at par of the Record stock held
by the new owners, OF asserted claims
against the bank or their assignees; or
If the managers shall think it advisable
| to the liquidation of the bank itself at
their option. The same method is to be
used with regard to the trust company.
Mr. SingerIy is to deed to the managers
all his other property and estate, to
further the liquidation. They are TO have
the fullest possible discretion and without
possible liability, although they will act
under advice of counsel.
| Six per cent dividends per annum are to
be paid so far us possible on the common
stock and no net earnings of the Record
shall be devoted to the redemption of the
stock until these dividends have been
paid. When redemption is made it shall
be pro rata amongst the holders of each
particular series.
Mr.. Singerly shall remain the editor of
| the Record and shall control its policy
but its business management shall be con
trolled by board, of which the managers
| may be member to be elected by :,