The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1897-12-30
The TERMS OF SETTLEMENT
THE CONFERENCE COMMITTEE 10
WORKING ON THE PHILADEL-
PHIA FAILURE.
The PLAN THEY HAZE MAPPED OUT
By Which 1t Is Hoped All Creoi'"r'
VIII Get Their MOney-Mr. SIN
gerIy to Continue to Edit
the Record.

Philadelphia. Dec. 27.-The conferees
selected to formulate plan OF settle
| ment of the affairs of the Chestnut
| Street Trust and Savings Fund company
of which William Singerly, proprietor OF
the Record, was president, and when
closed its doors last Thursday today
presented their plan for the consideration
of depositors and creditors. The chiet
measure suggested is the issuance or
Record stock to secure the creditors. me
plan is prefaced by a statement tnat
sit must be clear to all concerned thaI
in no case can creditors of the bank, OF
the trust company, of the pulp and pa
per company and of Mr.. Singerly MIN.
self realize more than the total value OF
the assets and rights of these corpora
lions in addition to those of MI Singeriy
individually. No matter how protract-
ed or expensive possible assignments
and receiverships may be made, the cred
itOrs can not receive more than the to-
tai of the assets less the cost and eX-
penses which will be incidental to their
administration under what will be the
most expensive. form of such admins
tration. The fact, however, not at hrst
sight so obvious, though it more ana
more impresses itself upon us, is that,
owing to the peculiar nature of the prop
in their management will result In the
receipt by the creditors of less than the
present and probably much less than
the ultimate value thereof.
1T 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, 1t Is
said, in the fiscal year 1896, S31O,OOO net.
and earning, also, it is said, in the last
seven years an average actual net earn
ing of $243. 900, will enable him not only
to maintain the present great value OF
the property but also to increase it.
This plan, of course. will be greatly
aided by Mr.. Singerly'S~ assistance that
everything possessed or controlled by
him shall be promptly, without legal CON
test. transferred to the managers to be
applied to the above purposes.
The plan provides that the capital
stock of the Record Publishing company,
or part of a company to which assets
shall be assigned, shall be fixed and is
sued to an amount necessary to give all
creditors in class A par for their claims
in a stock preferred as to dividends and
principle which shall bear 6 per cent
interest cumulative; and all creditors in
class B par for their claims in a second
preferred per cent cumulative stock
also preferred after the preferred stock
as to dividends and principle and all
creditors in class G par in -he common
stock of the company. No cucumber
ance against the Record Publishing, COM
pany's property is to be created without
the assent of the holders of two-thirds
of the preferred stock of the two classes.
p Glass A shall consist of asserting cred
itors to the extent to which they may
hold liens against the Record Publish
ing company or preferred nr city claims
against the bank or trust company or
persons or corporations willing, to adj
vance new moneys to be applied. at the
best discretion of the managers. in the
furtherance and bringing about of this
reorganization.
Glass B shall consist of holdens of
claims against the Record of claims COW
cred by its stock. In case of any doubt
as to the amount or actual existence of
claim as being a valid'O against the
Record. the managers may finally settle
the amount and status of such claim with
out liability to themselves; or if their
decision be adverse to the status of the
claim as one against the publishing COM
pany. the holder thereof may insist upon
a judicial decision of his status.
Glass G shall consist of all creditors
other than those specified above of any of
the parties, a reorganization of whose
affairs is now contemplated or may be-
come necessary to the success of this
plan.
A note is here inserted that there now
exists S1000.000 common stock of the
Record Publishing company subject to
the prior lien of 100000 of mortgage.
After a full examination of the property
it was recommended to syndicate re-
Gently formed that this stock issue be
increased by the issuance of S2.O00.0G0
preferred stock, making the total issue
100000, the 100000 of mortgages
being il tended to be paid out of the pro-
ceeds secured from such issue. Under
ferred stock at par were over sub
scribed for by the capitalists and bank
ing interests of Philadelphia.
The managers of the plan are to make
distribution of the stock within thirty
days after sufficient assets have heen
received to make the plan operative.
In exchange for the stock the claims
are to be turned over TO the manager
and the stock is to he subject Ia the re-
years upon payment of its par value
with 6 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 now owners of asSented
claims against the bank or their as
signees: 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. .H,
Mr.. Singerly is to give to the mana
gers all of his other properties and es-
tate to further liquidation. They to have
the fullest possible discretion and with
| out personal liability. although they will
| act under advise of counsel
Six per cent dividends are to be maid
| so far as possible on the common stock
| and no net earnings of the Record shall
| be devoted to the redemption of the stool;
| until these dividends have been paid
When redemption is made it shall be pro
| rata amongst the holders of each por-
| tioular series. Mr.. Singerly shall remain
the editor of the Record and shall con.
| troll its policy. but its business manage.
ment shall be controlled by board, of
which the managers may be members. Ia
( be elected by voting trust. which shall
consist Of the managers and of Mr.. Syd.
ney F. Tyler. president of the Fourth
Street National bank. The plan is to he
submitted for the approval of the cred.
| itors. The document was agreed upor
after an all day conference between As
! Sipnpe George IT Eorl. Jr NJ, S;,