The daily morning journal and courier., 1897-12-28
ISSUANCE OF RECORD STOCK
PLAN FOR SETTLEMENT OF SINGER.
 LY'S BANK AFFAIRS.


 Conferees Submit 1t for Depositors' Con-
 sideration and It is Accompanied by a
 Statement-Believed That if President
 Singerly Gives Entire Attention to Paper
 Plant It's Value May be Increased.
 Philadelphia, Dec. 27.-The conferees selected to formulate a plan for the settlement of the affairs of the Chestnut Street National bank and the Chestnut Street Trust and Savings Fund com pany,t of which William M. Singerly, proprietor of the Record is president. and which closed their doors last Thurs day, tonight presented a plan for the consideration of deposItors and cred itors. The chief measure suggested is the issuance of Record stock to secure the creditors.
 The plan is prefaced by statement that Tt must be clear to all concerned that in no case can creditors of the bank or the trust company, of the pulp and paper company and of MT. Singerly himself. realize more than the total val ue of the assets and rights of these cor porations in addition to those of MT. Singerly individually. No matter how protracted or expensive possible as- | signments and receiverships may be made. the creditors cannot receive more than the total of all the assets | less the cost and expenses which will be incidental to their administration under what will be the most expen- sive form of such administration. The fact, however, not at first sight so ob- vious, though it more and more i'm presses itself upon us is, that, owing to the peculiar nature of the proper ties to be handled, lack of good judg- ment in their management will result in the receipt by the creditors of less than , at present, and probably of much less I than the ultimate value thereof. Tt is believed, that if MT. Singerly | will continue to give his entire attention to the development of his great paper plant, the peculiar qualifications which enabled him to build up a property 1 earning, it is stated, in the fiscal year of 1896, $310,O00 net, and earning also, it 1 is said, in the last seven years an av- | craze annual sum of $243,000, will en- able him to do what not merely will | be impossible under changed conditions namely, to maintain the present great value of the property-but also to in- crease it. This plan will, of course, be greatly aided by MT. Singerly's insist ance that everything controlled by him shall be promptly, without legal con l test, transferred to the managers to be applied to the above purpose"
 The plan provides that the capital stock of the Record Publishing compa- ny, or of a company to which it's assets shall be assigned, shall be fixed and l issued to an amount necessary to give all creditors in class A par for their ] claims in a stock, preferred as to divi- 1 dends and principal, which shall bear per cent. interest cumulative; and all creditors in class B par for their claims l in second preferred per cent. cumu- lative stock, also preferred after the | first preferred stock, as to dividends and principal, and all creditors in class | c par in the common stock of said | company. No encumbrance against the Record Publishing companys property is to be created without the assent of the holders of two-thirds of the prefer red stock of the two classes.
 Class A shall consist of assenting creditors to the extent to which they may hold liens against the Record Pub- fishing company. Glass B shall consist of holders of claims against the Record or of claims secured by its stock. In case of any doubt as to the amount or | nf al ai hair valid one the managers may finally set- tie the amount, or if their decision be adverse to the status of the claim as one against the publishing company the holder thereof may insist upon a judi cial decision of his status. Class o shall consist of all creditors other than those above specified of any of the par- ties, reorganization of whose affairs is now contemplated, or may become necessary to the success of this plan.
 A note is here inserted stating that there now exists $1,000,000 of common stock of the Record Publishing compa- ny, subject to the prior lien of $7O0.0OO of mortgages. After a full examinations of the property it was recommended to syndicate, recently formed, that this stock be increased by the issuance of s2,000,000 of preferred stock, making the total issue sS,0000Ho, the s700,OGO of mortgages being intended to be paid out of the proceeds secured from such new issue. Under these conditions the s2,000,00o of preferred stock at par was over-subscribed for by the capitalists and banking interests of Philadelphia The managers of the plan are to make distribution of the stock within thirty days after sufficient assets have been received to make the plan operative. Iii exchange for the stock the claims arc to be turned over to the managers and the stock Is to be subject to redemption by MT. Singerly within six years upon payment of it's par value with six per cent. interest, less dividends meanwhile declared.
 Any assets obtained by the managers from those having claims against the bank in the distribution of the assets of the bank shall be applied pro rata to the purchase at par of The Record stock held by the new owners, of assented claims against the bank or their as- signees; or if the managers shall think 1t advisable to the liquidation of the