The evening herald. [volume] (Shenandoah, Pa.) 1891-1966, 1897-12-28

SETTLEMENT
Proposal to DepOSitors of Phlladelphia's
Failed Bank.
Mr.. SINGERLYS WHOLE FORTUNE
viii be Devoted to the Work Of Liquidation,
and Creditors viii be Secured by
stock of the Record Approved
by Deputy Controller.

Philadelphia, Dec. 2S.-The conferrees
selected to formulate a plan of set
tlement of the affairs Of the Chestnut
Street National bank and the Chestnut
Street Trust and Savings Fund COM
pany, Of which William M. Singerly,
proprietor OF The Record, was presl-
dent, and which closed their doors last
Thursday, last night presented that
plan for the consideration of depositors
and creditors.
The chief measure suggested is the
issuance of Record stock to secure
the creditors. The plan is prefaced by
a statement that ut must be clear to
all concerned that in no case can
creditors of the bank, Of the trust COM
pany, of the Pulp and Paper company
and of Mr.. Singerly himself realize
more than the total value of the as
sets and rights Of these corporations in
addition to those of Mr.. Singerly in
dividually. No matter how protracted
or expensive possible assignments and
receiverships may be made the cred
itors cannot receive more than the
total Of all assets, less the cost and ex-
penses which will be incidental to their
administration under what will be the
most expensive form of such admin
istration.
"It is believed that If Mr.. Singerly
will continue to give his entire atten-
ton 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
1895, $4,000 net, and also, it is said,
700.
nual net earning of S243, 900, win enable
him to do what not merely will be i'm
possible under changed conditions
namely, to maintain the present great
value Of the property, but also to in
crease it."
The plan provides that the capital
stock of The Record Publishing COM
pany, or of a company of 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 stock, preferred as to
dividends and principal, which shall
bear 6 per cent interest cumulative, and
all creditors in class b par for their
claims in a second preferred 6 per cent
cumulative stock also preferred, after
the first preferred stock, as to divi-
dends and principal. and all creditors
in class c par in the common stock
of said company. No encumbrance
/ against The Record Publishing com
! panys property is to be created
out the assent of the holders 20
thirds Of the preferred stock of the
| two classes.
A note is here inserted that there
now exists $1,OOO,OOO Of common stock
of The Record Publishing company
subject to the prior lien Of 100000 OF
MORTGAGES. After a full examination
OF the property 1t was recommended
to a syndicate recently formed that
this stock issue be increased by the is
suance Of 100000 of preferred stock
making tie total issue $S,0OO00O the
$1,000 Of mortgages being intended
to be paid out of the proceeds secured
from such new issue. Under these con
ditions the 1000, 900 of preferred stool
at par were over subscribed for by thu
capitalists and banking interests o
Philadelphia.
The managers of the plan are t,
make the distribution of the stool
within 80 days after sufficient asset
have been received to make the plal
operative. In exchange for the stocl
the claims are to be turned over to tn
managers, and the stock is to be sub
ject to redemption by Mr. Singerl
within six years upon payment of it
par value, with 6 per cent interest, les
dividends meanwhile declared.
Mr.. Singerly is to deed to the man
ayers all of his other property and es
tate to further liquidation, they t
have the fullest possible discretion
and without personal liability, al
! though they will act under advice c
counsel.
Mr.. Singerly shall remain the edito
of The Record, and shall control it
? policy but it's business Management
shall be controlled by a board, of whic
the managers may be members, to
elected by a voting trust, which sha
consist of the managers and Mr.. SyC
ney r. Tyler, president Of the Fourt
Street National bank.
Deputy Comptroller Coffin stated
L the conclusion of the conferrees' col
v sultation that he had telegraphed
= synopsis of the plan to Comptrolll
IS Eckels, with an opinion that it is II
only possible course by which Il
creditors Of the bank can expect
realize the largest percentage, or pro-
IS ably the entire amount of their claim
l. "It must be remembered" said, h
e "that the proposition is not made
Comptroller Eckels, but by Mr. SINCE
ly, through his friends and counsellor
as the very best they can evolve from
Is most complicated situation. If Il
n creditors of the bank reject this prop
ss sition the only alternative left them
l- a receivership-the most expensive
+ all methods Of liquidation, with a ce