The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-08-11

hands OF the wFeckers. through the action OF the
Bldde committee. The investors had been little
doubtful about guaranteeing their rights so com
pletely But" they said even II the committee $
powers are absolute, are they not honorable mem
surely, II Is not conceivable that these representa-
lives OF great banks and trust companies, men
whose regulations are Al stake. may not be trusted
to deal farly' They say they represent us and will
conserve our intercsts. And In this pathetic iath
W per cent. of the bonds were contded to the com
mittec's keeping, TO deal with as they saw III.
The honorable gentlemen saw At 10 accept from
the promoters 81 100000 OF restitution money ana
Tor this agreed to deliver the bonds and s4hoouo
common stock Of the newly formed General Asphalt
Company Preferred stock was issued To the dc
Iraudcd bondhoderS In the ratio of To ?. ana the
collateral gold certificates" selling, at tina, time
AZ y disappeared from sight
NOW, II must be remembered that from the time
OF the hrst collapse bondhOldcrs had urged ana
begged and demanded that the promoters be taken
10 court and forced to dlsgorge their Illegal profits
But the committee counseled patience NO su"
would be entertained by the courts. said these con
servatlve hnanclers Civil or criminal procedure
would result In prolonged litigation and might
yield nothing. II would be better to compromise
with the promoters Thus the punderers were
sheltered; the bonds-upoD which alone could re-
cOvery be made--were sequcstcrcd, and the be
fooled investors were left without hope OF resti-
tuition.
In this, and in articles which have pre-
coded it, there has been presented an out
line Ut the history of the Asphalt Trust
Reviewing the whole experience with the
idea Of ascertaining the possibilities or the
probabilities Of the recovery of any impor-
tant part of the investments made by the
public, it can only be said that the prospect
is almost hopeless. The possibilities Of
recovery lie in two directions oniy-reaiza-
ton upon actual and unencumbered assets
of the constituent companies by forced
sale. or through value given to holdings
through honest and businesslike conduct OF
whatever still constitutes the organization.
The first of these has been made virtually
impossible by the assignment Of securities
to the reorganization committee, and the
receivers sale at which the property was
bought in in the interests of the committee.
The second channel ID emphatically i'm
probable. II has been stated that the orig
inal promoters have picked up at sacrifice
prices all except a very small amount Of all
the securities, and that there are only few
outsiders who now have any holdings upon
which suit could be brought The rest are
frozen out and must pocket their loss with
such grace as they can.
The whole present situation appears in a
state of almost inextricabe confusion.
Suits are in process, others are pending, and
still others are promised Some Of these
are genuine, while others are said to be sim
ply "whitewash. One conclusion stands
out in bold prominence in the whole matter,
and that is that the investing public has lost
millions Of dollars by processes which, not
Gen. Francis V. Greenes
statement find no justification whatever
in law, equity or morals"