The Yakima herald. [volume] (North Yakima, W.T. [Wash.]) 1889-1914, 1897-08-05
FOR REORGANIZATION
CIRCULAR LETTER TO rHB CREDITORS
Latest News, Lscat and General,
Regarding she Wonderful Gold
Fields 81 she British Northwest
Tcrrissry-More Citizens Earouse.

Terrisery-MoFe Citizens Enrouse
As outlined exclusively by The HER
AID last week the principal creditors o
the Yakima Investment company hav'
agreed upon plans Of reorganizement
and statements Of the agreement hsv,
been sent to all other creditors, 80 far a,
known, for their signatures. The agree
ment has been signed by the Cslifornis
Safe Deposit & Trnst company, of Ssr
Francisco; the London & San Francisco
bank, of Tacoma, and the Electric Cor
porstion Of Boston,
The general plans Of reorganization ar,
based upon the creditors t1rning in thei
securities and receiving in lieu bonds anc
stocks in the new company. There arr
various classes Of security holders anc
the aggregate amount OF bonds to be de
livered will be about $4,000. TIL,
classes are As follows:
First and Second-Receivers certificate,
issued for the payment Of taxes, main
tensnce Of the property and receivers ex
penses amounting to $4,000. Holders o
these will receive in the reorganixed com
pany 81. 10 in bonds and 81 in stock OF
the face value.
Third-Holders of purchase money
certificates amounting to $4,000 which
were issued to repay money advanced fol
the purchase of the lands from the Nor
thern Pacific Railway company. Fol
these will be issued $1.O5 in bonds and
81 so in stock.
Fourth-Collins certificates, amounting
to $l39, 1857 "a, which were issued for con
struction work to Collins, Stacy, Smith
Kstz and others. These will be redeemed
on the dollar by the issuance of 81 in bonds
and $I.25 in stock.
Fitth-Holders of bonds issued by the
Yakima Investment company to the
amount of $262 900 which we're not solo
but hypothicated by Paul Schulze for
about $lO0,O (Which money has never
been accounted for are required to ad
vance 80 per cent Of the amount OF theil
bond holdings in cash for which they
will receive 80 per cent of the face value
Of their security in new bonds and 20 pei
cent in stock. Those who fail to make
the advance receive no new securities.
Sixth-The unsecured creditors, who
are mainly store keepers and lsborers who
accepted certificates, will receive the face
value OF their claims in stock of the re.
organized company.
The statement sent to the variout
creditors and which is signed by thu
California Safe Deposit & Trust company
is as follows:
Dear Sir: We enclose you a copy o.
reorganization agreement being signed by
creditors of The Yakima Investmen,
Company. and would be pleased to have
you join in the reorganization by signing
the agreement and returning same at your
earliest, convenience, with any receiver
certificate or. bonds held by you, to the
undersigned Trustee, at San Francisco
Gala, or care OF London & San francisco
Bank, Limited, Tacoma, Washington.
THE property of The Yakima Invest
ment Company, if preserved from sacri
fee and prudently managed, lie unques
tionably Of great value, and ought to pay
in full all just claims against the company
While the property is in the hands of re-
ceivers the cost Of operation and expenses
of litigation are necessarily large. and i,
is difficult to induce settlement or make
sales of lands OF the company. Intending
purchasers hesitate to buy property in
litigation, and seem to fear that failure
to maintain the irrigation plant nigh,
occur. As "a result, the income is cut
off, expenses are accommodating and the
value of the property is depreciating
This makes the present securities unsala.
BILE at any price and Of doubtful value,
and unless q reorganization is effected,
every creditor must expect to suffer q
heavy loss.
"The plan Of reorganization contem.
plates taking the property out of the
hands Of receivers as quickly as possible
and into new and solvent company,
which will issue its sis per cent. twenty
year gold bonds, not exceeding $45O, 900,
to take up present liens. The new com
pany will have no indebtedness except
these bonds. 1t could operate the prop
erty at much less cost than it is possible
for receivers TO do, and it is believed
would be able to attract settlers and make
large sales OF lands and water.rights. 1t
is expected that the new company would
pay taxes, operating expenses and inter
est on it's bonds from the beginning.
When this 10 accomplished, the new
securities would have an establish cash
market value, and the holders be able to
realize on their bonds.
1.-THE reorganization cannot be accom-
plished unless the holders OF present
secures cooperate. II the ve-organiza-
ton fails, it would seem impossible to
prevent a forced sale OF the property.
This would certainly result in heavy loss
to every creditor of the company.
"We trust that you will give the mat
ter your immediate attention, and We
feel sure that it will be greatly to your
advantage to join in the reorganization.
"Signed agreements with receivers Ger.