New-York tribune., 1903-08-18
SALMON TRUST BONDS.
Some Under1criters Send for I'm
paid Subscriptions.

The Knickerbocker Trust Company has
brought suits against several of the under
writer's of the bonds of the Pacific Packing and
Navigation Company, which has been known as
the Salmon Trust. to recover the balance of
their subscriptions. amounting to 80 per cent of
the original sum subscribed. The concern went
into the hands of receivers early in the year.
the action in which the receivers were appointed
having been brought in the United States Cir
cult Court in New-Jersey. Judge Kirkpatrick
appointed Thomas B McGovern. former Off
Ger of the company and George B. Hallock the
receivers in an action by the Colonial Trust
Company. of this city, creditor. and r. Pfief-
fer, stockhoder
The company had been reorganized about a
year before the receivers were appointed. There
had been original issue of bonds, amounting
to $3.000.000, bearing interest at the rate of s
per cent Upon the first reorganization the
company proposed that the holders of these
bonds should accept so per cent in new per
cent bonds, 1923 per cent in cash and 33 13
per cent in the preferred stock of the company.
All except the holders of about $4,000 of the
old bonds. which had been subscribed, accepted
the proposition.
The underwriting of the bonds done
through the Knckerbocker Trust Company
Two calls of % per cent each have already been
made by the trust company and paid by the
underwriting subscribers. Recently a final call
of the remaining 80 per cent has been made
Some of the underwriters have paid. and others
have refused to pay. Summonses have been
served on several of those who have refused
but it is understood the complaints in the ac-
tions have not yet been served.
Just what the defence to the actions will be
has not yet been disclosed, but there has been
good deal of discussion over the rosy prospectus
which was put out when the bonds were origin
ally subscribed and the great rapidity with
which the large assets spoken of in the pros
pectus disappeared, as was shown by the con-
dition of the company when the receivers were
appointed.
1t has been stated that one ground upon which
the actions the subscriptions will be defended
is that the reorganization agreement by it's
terms not TO become operative until the
holders of so per cent of the bonds agreed to il,
and that matter of fact this percentage of
bondholders never agreed to il, and that there
fore it never became operative
The total of the last call amounts to
nearly 100000 It could not be learned what
Among the subscribers to the bonds were such
firms and individuals as J. P Morgan & Co.
August Belmont & Co, j. & w Seligman, F.
H. Leggett, J. D. Her Charles r. Flint, George
F. Baker, J. A. Folger, of San Francisco; F. G.
Sayles & Son, Providence. r. l.; Percval Kuhne,
James c. Parish A. Newbold Morris, George F.
Victor, Archer Brown S. NJ. Jarvis, Stuyvesant
president of the Park National Bank. was large
ly interested in the company. and the Colonial
Trust Company is said TO be a heavy creditor.
Some of the banks said to be partially
cured for advances by pledge OF bills of lading
and warehouse receipts for stock on hand.