The Providence news. (Providence [R.I.]) 1891-1906, 1903-07-08
Attempt TO Arrange With Drss-
scr Creditors Not a Success.
SECURITIES HAD DEPRECATED
Receivers Of Big Commission Firm Say
Business Is Good and Creditors viii
Receive Payment.

New YORK, July Sit was announced
yesterday that d. Leroy Dresser & Co..
commission merchants in hosiery silks
and webbing at is Greene street. which
firm made an assignment and was put
into bankruptcy on March Z. was unable
TO carry out the arrangement proposed
on April s to his creditors ror a settle
ment In full by depositing $4,000 within
90 days with the knickerbocker Trust
company
The depreciation OF his securities
pledged as collateral for loans and the
refusal OF several Of the creditors 10 sign
the settlement agreement until they saw
the money put up are given as the chief
reasons.
Morris j. Hirsch attorney for Mr.
Dresser, gave out the following statement
yesterday: The proposed adjustment OF
the affairs OF Dresser & Co. being out
aide or the pending proceedings in bank
ruptcy. required the assent or each and
every creditor
.As several of the creditors have with
held their signatures and serious COM
plications have recently arisen by reason
or matters relating 10 Mr.. Dresser's as
sociation with the Trust Company OF the
Republic and the United States Shpbuild-
Ing company. and also By reason OF the
decline In value OF collateral held by
some OF the secured creditors, thereby in
creasing the amount OF the unsecured liza
bfntes, II has been concluded that an or
der OF adjudication in bankruptcy be en-
tered, and that the settlement now take
ceedings
"The entire matter OF compromise will.
therefore. In due course be submitted 10
the creditors at a meeting 10 be called for
tnat purpose, at which IL the plan 10 be
proposed be accepted by a majority OF
the creditors on number and amount and
approved by the court. as provided by the
bankrupt law. the composition will there
fore, become effective and binding upon
all the creditors
e. NO MARKET FOR SECURITIES.
The meeting will he held as soon as
the necessary steps for that purpose can
be taken. Meanwhile the receivers will
remain In possession Of the assets under
the direction OF ths United States dis
frict court"
Mr.. Hirsch, in answer 10 some cues
tfons, said that for instance. some mer-
chandise held as security by creditors
in which there was a margin at cost OF
~ per cent, had been disposed Of BY the
creditors holding IL at prices that wiped
out the margin and left deficiency OF
" 20 6 per cent. The stock Of the Trust
company Of the republic, amounting 10
several hundred shares, and which was
held by some OF his creditors as collateral
and which was above par at the time OF
the failure, has since deprecated TO less
than 50
So. with the securities OF the United
States Shipbuiding company. held as
collateral, which are practically now with |
out market. creditors who were sun
posed 10 be amply secured turn out thus
10 be unsecured creditors and the amount
OF money necessary to be raised proved |
10 he so much larger than expected that |
Mr.. Dresser could not raise a. What |
the amount OF the composition will he |
Mr.. Hirsch could not say a present. but |
others who are familiar with the affairs !
or Dresser & Co. are under the impres-
sion that II will he about 25 cents on the
dollar
Some Of the creditors thought that the
Vanderbilts would come 10 Mr.. Dresser's
rescue, but those who knew about the
circumstances expressed the opinion that
II the Vanderbilts had intended to help
him or II he had intended 10 ask them
for help he would not have failed IN the
frst place.
RECEIVERS WILL CONTINUE.
Several creditors Of the firm have re
Gently asked leave ~ the United states
district court To intervene and toin in
the original petition in bankruptcy. hav.
Ing In view that the se.tiement might fail.
nut their applications nave not yet been
granted. These creditors are: Yasuhei
Mogi Of Yokohama. Japan. Ss0353; Yoko-
hama Specie Bank. S97Ol. w r. Pagan.
sT224l; on an assignee claim Of the
American Tubing and Wedding companv
of Providence. Manufa cturers Trust com o.
pany of Providence. s29.ll2, and the First
National bank Of Boston. 10000
The last statement that Dresser made
was on April s, when all his creditors
,heered him al meeting In his law
yer s Office. Creditors for million or
mora were at that meeting. some OF {
them ready To sell their claims at 25
sents on the dollar.
II was then that Mr. Dresser promised
hat within 40 days $3.50 600 would he
deposited with the Knickerbocker Trust
company for the creditors and that every
,laim would be settled In fun. In that J
'tatement ~ three months ago Mr. :
Dresser said: q
II am assured that of the $3.50 900 to
" deposited with the Knickerbocker {
trust company. $500 0OO will he forth r
oming within the next 30 days. and
he remaining $3.50 900 shortly thereafter. :
md the time limit ~ 90 days Is fixed to
'over all possible contingencies
The extended time In which the re- I
Divers were 10 serve expired today one
them. Charles S. Mackenzie. said to-
ay:
We will continue 70 run the business
Z Dresser q Co until a trustee is an.
ointed. We are doing a good business
nd expect that all the creditors will Q
e paid in full"
Group instantly relieved. Or. Thomas. 81
Electric OIL. Perfectly safe Never r.