New-York tribune., 1900-07-16
financial.
Readjustment of Affairs
Price, Mccormick & Co.
AZ wAII, STREET. NEW YORK July s. 800
To the Creators of
Wessrs. Price, McCOrmtcS DC Co.:

Forty-two days ago Messrs. Price. Mccormick & Co
found It necessary suspend payn-en ana maze
General Assignment under the laws OF the state oi "
York to Mr.. William J. Curtis
The business and operations Of the nrm were very
extensive including English as well as America"
stock and markets. The active accounts ~"
their books numbered eleven hundred me ioe"'
adness amounted to about 10000 and the secured
loans Slo.OOoOOO. 80, .
From this statement 1t would not be unreasonaD's ="
exnact that the sudden soppaEe such large organza
ton would necessarily involve sacrifice IN
assets: but the Assignee tas well as 70 ,He
members Of the firm. who have rendered every PoO
assistance TO state that 100000 OF the oahS
have been discharged most Of the accounts nh'o'ns
many complications been adjusted and deternined
only OF securities have been SOFA uue'
forced conditions since Assignment; and that the
remaining loans are being carried and daily diTn
plan by which customers were induced to take up
their securities the then market prices and 70 eae
the deficiency general claim against '"e
assigned Estate worked admirably; while the banks
and holding loans have responded in the most
consderate 10 the requests of
Assignee undersigned for the Withholding OF
collateral from sale To both classes OF ereaorS' '
Assignee. counsel. and firm record their gratitude
on the 23d ultimo Assignee hed his oncial
schedules as Of May o. 1900 but have no doubt that
you will have appreciated that the assets Those IN the
hands OF the Assignee redeemed from the loans which
he paid off. well those still standing as COZ
the unpaid oans) still subject 70 the hue
OF the markets; and also that the ldolSs may
be increased These conditions incident 70 business
Of this magnitude In closing the numerous
accounts believe the liabilities viii be increased
at least hundred thousand dollars above all former
estimates
In this case. however. is characteristic OF most
active banking Of the securities are ol
kind not Immediately marketable at advantageous prices
ad reo1,ire sneciar prudence and skill we'll time.
for the realization the best results believe that "
certain OF this class are not no" thrown
upon the market they will. and some
at an early dae) produce much larger sum The CHIEF
asset Of about twenty thousand shaTes
Of the Philadelphia Company (owning street railroads
natural gas artificial gas electric light and power
properties In Pittsburgh. consolidated last year under
the auspices of the banking house OF Brown
Brothers & Coz. This Company pays dividends Of hve
per per its capital stock The pres
price of the shares is thrtynve collars par
value fifty doIlars). The stock has sold at par
The Assignee securities referred TO for
the requisite period therefore becomes necessary
method Of preserving and securing
the equity in Of this class.
We might permit the law take its course. wind up
assignment due and at the end Of con
siderable period such dividend might be
warranted: this process would not be- in my tuds-
meut, for best interest Of Creditors.
consider it Of far greater benefit Creditors that
they promptly receive fifty per centum upon their &C
that the remaining equity be held realized
upon trtbuted by Trustees under liberal cond-
t,ons OF discretion for the benefit Of Creditors
desiring Join the Plan; or at the Creditors option
that twenty-five per centum be paid in cash with a
distribution in kind Of the stocks under the
the Plan and with further equity
the remainder.
practicable for the Assignee promptly TO dis
tribute fifty centum in cash.
Recognizing however, the advantages to Creditors Of
immediate money IN their affairs and TO fact
tate their and anticipate the realza
tion upon Of the kind referred to- have negot-
arranged loans the Trustees Of amount
which, IT be practicable
for the Assignee distribute the time. Will
afford the immediate payment Of Atty per
upon approved claims OF the depositing Cred
tors severay be secured by assets held
by than those distributed under the
and to for the period OF at least year II
Trustees desire.
The annual income is present more
than equal the interest upon such Trust loan
Accordingly. have prepared and submit herewith.
Plan for the readustment Of affairs with the view TO
OF the best and quickest results to the
depostng Creditors.
The Plan. in effect, provides
CaD The Immediate discharge of all ont
standing loans, and the redemption of the
remaining collateral thereon.
CbD The prompt distribution of fifty per
ceDtum in cash to Creditors availinE OF the
PIas and the establishment of n trust in
respect o certain important assets which
are not Immediately marketable except at
n great sacrifice, and from which securities
1t is anticipated much better results will be
realized during the period of the trust and
under the prudent management OF the
Trustees.
(cl Or mt the option of such Creditor, to be
exercised as stated in the Plan. twenty-five
per centum I'm cash and the distribution to
the stocks under the conditions of the Plan
(d) In either case, the further dtstrtbutfOn
by the Trustees, from time to time. of the
net proceeds of the assets embraced I'm the
trust, including any further dividends paid
by the Assignee; due allowance, of course,
being made to the respective rights and
interests of Creditors avaiIinE of the alter
native privileges.
(e) The prompt winding mp of the General
Assignments.
1t is TO be understood no personal re-
and In Agreement, the based
upon the reports by Assignee and his compe
tent experts; also, that I statement and
give no prognostcation to the additional amount
may such Creditors each Creditor
being himself the Judge this point. but It win be
substantial; and will be noted Plan
depositinK Creditors all their equity
signed Estata form another; they obtain
the major portions Of without waiting
naming equity will be prudently managed.
course be distributed by the Trustees.
I earnestly advise the prompt adoption OF the Plan.
Messrs James G. CVice-President Fourth
NatioI al Bank) Brayton Ives president Metropolitan
Trust Co). and VIM Lanman Bull (of Messrs. Edward
Sweet & Coz have consented to Trustees.
Already representing percentage have
approved the Plan
You are respectfully referred ReadJust-
Agreement. which I take considerable satisfaction
submitting you within six OF the suspension
Respectfully,
WIN. NELSON CROMWELL.
Counsel.
Referring the foregoing Communication OF Mr.
Cromwell OF which heartily con
cur request OF Creditors OF Messrs Price