New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-11-20
STOCKHOLDERS INQUIRY.
TO PROBE II. S. REALTY +.
.SDever. Stillman and Others Seek
Radical Changes IN Concern.

rectors of the United states Realty and Con-
struction Company, the largest ana ricnest
company of it's kind in this country are not Oh
one mind as to the management OK the COM
pany Because of this fact STOCKHOLDERS coH-
nittae has been formed to investigate, IL pos
sible the policies which have been pursued
since the inception of the corporation, in July,
1902 to determine whether or not the manage
ment could be- or could have been, improved.
and especially to learn what brought about the
big decline in the market value of the stock of
the company. The organization incor-
porated with a capital stock of s66000.oo0. A
realty company of its size and objects had
never been launched before, and the announce
ment of its creation was greeted with evident
signs of pleasure by many of the most con-
sentative owners of real estate In this city as
emphasizing in an extraordinary and unusual
way the stability of New-York real estate and
the prospect for future profits from realty in
vestnlents.
The committee which has been formed to i'm
prove the management of the company, and
which was referred to last night by Of its
members as IAN investigating committee"
styles itself a stockholders committee. James
Speyer, the banker said last night to be
the pivot man in the committee. The other
members of the committee James H. Hyde,
A. d. Juilliard, F. p. Olcott and James Stillman.
About s330O0.000 preferred stock and about
s27 O0O,0 900 common stock have been issued The
first sales of the preferred stock were at Sc,
and of the common at about 30A The highest
price paid yesterday for the common was 5A,
and for the preferred 36A.
The corporation took over the stock OF the
George A. Fuller Construction Company, one Of
the largest construction companies in this coun-
try; the stock of the New-York Realty Corpora
ton, of which Bradish Johnson was president
and Robert f. Bowling and Albert Flake were
vce-presidents, and the real estate properties Oh
the Central Realty Bond and Trust Company.
The capital stock underwritten by
syndicate in which were James Stillman,
Charles NJ. Schwab. Albert Flake. Robert Z.
Dowling H. s. Block, Henry Morgenthau'
president of the Central Realty Bond and Trust
Company the Mutual Life Insurance Company
the Equitable Life Assurance Society, the Cen
trail Trust Company and other banking inter-
ests The syndicate set aside S19000OOO in pre-
ferred stock and an equal amount in common
to be exchanged for the stock of the companies
it took over and the realty holdings of the Cen
trail Realty Bond and Trust Company Inc
syndicate paid in cash S11,OOO,OOO, receiving Tor
each 500 one share of preferred stock and one
share of common. share of common and
share of preferred originally sold at about
SIG yielding a profit to the syndicate or 10
per cent.
According to an announcement officially made
for the committee last night, the committee asks
the preferred and common stock holders to de-
nosit their holdings on or before December 70
next with the Equitable Trust Company of New
York at No % Nassau-st., with a view 10 secur-
ing radical changes in the administration OF rhe
company. The stock is to be deposited under an
agreement vesting it and the voting powers
thereon in the committee and its successors for
three years unless the committee shall deter
mine on an earlier dissolution of the agreement.
In the latter event the stock deposited VIII De
returned free of charge. The committee own
and represent large amounts of the capital stock
of the company and deem it important that i'm
mediate steps should be taken to bring about
necessary changes in its administration"
Bradish Johnson. president of the United
States Realty and Construction Company, said
last night to Tribune reporter
The formation of the stockholders committee
does not show any disagreement or opinion as
to the management of the company 1t is COM
posed of some of the leading holders of stock.
and its purpose is to decide about the best
comnany in the best possible way. / know of
no great dissatisfaction with the management
of the company.
A member of the committee said:
When a person pays a dollar for something
he thinks worth at least dollar. and he sees
his dollar almost dwindled away to nothing, he
has good cause, 1 think. to say: Let me see
what is the cause of this decline. Let me in
vestigate the management of the company
rs not the committee of the opinion that the
building trades trouble is one of the principal
causes for the decline of the stock?" was asked.
THAT is what it has got to find out" was the
reply. 1.-THE committee desires to be able to
say exactly what has caused the decline in the
shares of the company, and what if anything,
should be done to better the company. So far
as 1 know, no bears any i'll feeling toward
any officials of the company. nor is any one
bent the removal of any official"