The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-12-28

ment of 100 per cent upon the original stock
holders and for the forfeiture and cancel
laton Of all stock upon which the assess
ment cannot be collected, and for the cleo
ton Of new board Of directors and new
officers by the holders of the new stock which
is to be issued to original stockholders who
pay the assessment referred to and to the
creditors who accept stock in part pay
ment of their claims
The plan further provides for the pay
ment OF creditors as follows
Ten Q0) per cent to be paid by the re-
ceivers in accordance with their petition,
and which sum has already been paid.
Forty-five t45 per cent to be paid in cash
by the reorganized bank as hereinafter
stated, and forty-hve t45) per cent to be
paid in certificates of stock in the reor-
as shall be fair and equitable to all, as
hereinafter stated.
Or payment Of sixty (6G per cent in full
any stock to be made as follows:
Ten QW per cent to be Paid by the re-
cevers OF the bank (Which payment has
already been made, as above stated, and
the reorganized bank as hereinafter stated.
The cash payment (other : than the 10
per cent paid by the receivers) shall under
either method Of settlement be secured by
certificates or notes Of said reorganized bank.
payable to the order of the respective parties
entitled thereto on before lfvef % years
from the date OF the reorganization of said
Danh, Win interest at the rate OF TWO W per
cent per annum, payable annually; and proper
provision shall be made for the payment of
ten Q0) per cent dividends on the face amount
Of said certificates or notes, as often suff-
cient funds to warrant the same have accu-
mulated in excess of the amount required to
save any equity which may appear in en-
numbered property, and to pay taxes, assess
ments and insurance on and to care for any
and all property which shall belong to said
bank, and to Increase and preserve the as
sets Of said bank and for the protection and
security of creditors.
This plan is the result of long and careful
consideration by the highest legal talent of
ST. Paul, and has been approved by the best
business men of the city, and should It be ac-
cepted by the creditors of the bank, 1t is he
leved, VIII result in large benefits to them.
not only In the Increased amount which will
be obtained, but in less delay In settlement
than If no reorganization were had.
Inc main questions for the consideration of
the creditors are: VIII we be any worse off
under the proposed plan than under the re-
plan enure to our benefit?"
The reorganization plan proposes to pay
dividends as rapidly as sufficient funds are
collected from the assets of the bank, 10 pay
ten C10) per cent on the Indebtedness only
retaining such amount as maybe necessary
to care for any equity in mortgaged property
belonging to the bank and to pay taxes and
care of same.
II is safe to accept that the collection of the
assets and their distribution among the cred
itors in the form of dividends can, be made
as rapidly and as effectively under the reor-
ganiZation plan as under the ,receiyers-can
be completed In quite as short time and GER
tatnly with far less expense.
so that so far as dividends are concerned
the reorganization plan promises far better
results than are likely to be accomplished
under the receivers.
The want of authority by the receivers to
protect the equity IN mortgaged property now
belonging to or which may hereafter be &C.
quired by the bank. can only result in ser-
Gus loss, which under reorganization would
be saved for the benefit Of the creditors. and
hence in this respect also, the latter plan is
far preferable to the former and should be
SO considered by the credtors.s N
Though large amount of 5real estate will
enure to the receivers from the Dawson es-
tate, it will be of very little value. because
of the cloud upon the Htle byf reason of the
dover OF Mrs. Dawson. bt
And If besides this is consideredu the ina
bility of the receivers to properly protect, 1t
Is but fair to presume that all this property
must OF necessity be forced upon the market
almost without price to the great detriment
OF the claims Of the creditors.
Under the reorganization, the release of the
dover of Mrs. Dawson Is assured, and this
set OF the reorganized bank-wiIl add
greatly to the amount to be divided among
the creditors, and insure far larger returns
to them than Is possible under the receivers
Besides the reorganfzed bank would be in
position to exchange real estate for claims
against the bank without reference to anv
authority except board of directors -se,ect d
/ by and from the creditors. The
creditors being largely in majority in the