The evening times. [volume] (Washington, D.C.) 1895-1902, 1901-07-19

District Property Involved in the
observation-disclosures State Realty
6Ompany's Plan of Settlement.
The consolidated cases Of James "
Carpenter and others. James H ClaEett
and others and ". F SiGdeil and others
against the AugIo-American Savings a-d
Loan Association Of New York. in which
the compliments asked for the appoint
meEt OF q receiver for the assets of the
defendant IT. this jurisdiction were heard
yesterday by Justice Bradley The mat
ter came w for consideration on the
proposition of the Empire State Realty
Company. If New York. made through
the receivers of the AEsIo-American As
sociation to settle the differences by the
purchase OF the stock Of the association
al 30 cents on the dollar. based on the
book cost value Of The stock This prop
osition il Is stated. has been favored by
The Supreme Court OF the State Of New
York, provided that co per cent Of the
stockholders Of the AuEIo-Amer ican saw
ings and Loan Association endorse II
i is estimated that the Anglo-Americau
Association has about Sgo1t1 worth of as
sets ia this jurisdiction. The complain
ants were represented by RaIston & Sid
dOns. Of this city, and William II. Rus
sell. OF New YORK. and Charles a DeShon
and Judge Z. ?. COyIe. Of New York.
representing the receivers of the Angle
American Savings and Loan Association
appointed by the New York courts.
The plan Of settlement offered by the
Empire State Realty Company is set
forth in the following circular letter. dat
ed July l last, addressed to the stock
holders Of the AnEIo-Americau Savings
and Loan Association
The Empire State Realty Company
was organized in November, 1900 by the
Directors OF the Auglo-American Saw
ings and Loan Association, fer the sole
purpose OF taking over and conserving
the real estate interests of the association
for the exclusive benefit Of the stoCkhoid-
ers Of the association This, OF some
similar plan. was made necessary because,
under the law the borrowing limit Of the
association had been reached and tie di-
rectors were poweTIess to further pledge
the associations credit TO obtain funds
with which TO safeguard its assets against
forced sale. The plan thus devised failed
of contamination because Of the ap-
pointment Of receivers for the associa-
ton. After the receivers were appointed
and qualified. the directors. acting in the
interest of the stockholders and with a
OF the association from loss and sacrifice.
prepared and submitted a proposition TO
the receivers for the purchase by said
Realty Company OF said interests Wncn
was approved by the court This prCpo-
siJion was opposed by certain stockhold-
erS. and. on appeal TO the Appellate Di-
vision Of the Supreme Court the decision
Of the lower court vas reversed, prlnel-
palIy upon the ground that As the plan did
not provide for the purchase of all OF the
associations assets with the right IN all
the stockholders to share in pro rata
distribution OF the same a discrimination
against certain stockholders might result
Immediately after this decision nego-
tiations were entered into and active
measures employed in the preparation Of
q modified plan having in view the con-
serVatIon of the assets FOR the share
holders Of the association. Such new
plan in the form enclosed has been sub
mitted TO and approved by the receivers,
and has received the sanction Of the
court as will appear by 3 copy Of the
courts order also enclosed
This plan differs from the former one
in that Il provides for the taking over OF
all the assets Of the association instead
of the real estate interests only Under
this plan the Realty Company IS 10 puT-
chase these assets at % per cent Of their
book cost value TO assume al the debts
Of the association as the same appear on
its books as part of the purchase price
TO give its bonds for the balance Of said
purchase price and secure the same by a
blanket mortgage covering all the assets
transferred. except an amount practically
equal TO the debts assumed and the pre-
ferred stock paid in TO furnish q fund of
sl95gJ in cash. being the amount Of its
preferred stock subscribed by its direct
oTs, TO carry and protect the properties;
and the directors Of the association are
to give their joint and several bond in
tn sum OF $4,000. conditioned that the
proceeds Of the assets transferred TO the
Realty Company. over and above all eE-
penSes Of sale and ali administration ex-
penSeS OF the Realty Company. shall be
sufficient to pay said bonds and the debts
of the association assumed by tia Realty
Company and also 10 pay OF the said
preferred stock Of the Realty Company.
Your attention Is particularly directed
TO the fact that by means OF the $4,000
preferred stock Of the Realty COmpa ny,
paid in by the association : former direc-
tors the properties viii be conserved uu-
III sales can be advantage 0UsIE made. and
DE means OF the directors bond OF $3.50 u.+G,
all shareholders, whether they assent to
the plan or not. viii be assured that the
properties viii IN fact realize their pur-
chase price. % per cent Of the book value.
Stockholders who shall sSent 20 the plan
by exchanging their aSSCC citation stock for
the common stock Of the Realty CoTnPaH y
VIII in the first place aid in the c0nsUrn-
nation OF the plan and make II an accom-
plIShed fact They Will in the second
place. receive from the properties and as
sets transferred precisely the same pro-
assent and in the third place. are as
sUred of a participation in such net aEaits
from the sale OF said properties and as
sets as may be realized by the Realty
Company over and above their purChas Sc
price IN consideration of the provision
by the directors Of the fund Of s135. ore 10
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