New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-01-20
FIFTH ASSESSMENT CALL.
ON SHELDON SYNDICATE.
Shipbuilding Reorganization Plan
WOald Wipe Out Stock.

The members Of the Sheldon syndicate Of the
United States Shipbuilding Company it was
learned yesterday have received from the syn
dicate managers a call for another assessment
OF 10 per cent. payable on January %. on which
day the syndicate will expire by limitation.
The syndicate. which formed about fifteen
months ago. bound itself to furnish S4123OOo
with which TO enable the Trust Company of the
Republic tc pay off certain large loans made IN
connection with the financing Of the shipbuild-
ing company. and took over from the trust
company in exchange Sj.5O0OOO of the first
mortgage bonds of the shipbuilding company.
SJ,JOO.00O common stock and S2I500O0 pre-
ferred stock. Three calls of 20 per cent each
had been made the underwriters up to De-
cenAber ! last. when another 10 per cent was
called up. The call issued is the ffth and
brings the total assessment up TO 90 per cent or
about $3.I10G00 II Is understood that no fur
ther call will be made. the syndicate managers
having disposed of enough Of the securities to
make up the difference between the amount al
ready called up and the entire sum for which
the subscribers bound themselves
Several OF the details of the new plan OF re-
organization OF the shipbuilding company. which
IL was announced in The Tribune yesterday
morning was in negotiation between the Shell
don reCrga nizaticn committee and large holders
of the first mortgage bonds, became public in
the course OF the day The plan IL is said is the
handiwOrk of Receiver Smith, and thus comes
from neutral source. As already said in The
Tribune the radical difference between the orig
inal reorganization plan and the revised one
IS that instead OF new first mortgage bonds TO
the amount of $l2OS0O00 which would go to the
holders of the S1O.OOOOOO old second mortgage
bonds (most OF which are owned by Charles NJ.
SChwab), IN exchange for their holdings and
100000 cash. the s1450O. eco old first mortgage
bonds being exchanged for new preferred stock
under the new plan there will be no bonds. II
is understood. however. that the plan cCnten-
plates the raising of additional working capital
by the issuance of $3.000O00 short term notes.
of which Mr.. SChwab. according 10 report. will
take about one-haIf. Both the preferred and
common stock are to be wiped out. The for
mer. under the first reorganization plan vas TO
have received SS.O0O.1G9 (or 10 per cent of the
outstanding $20.O0O.oOO preferred stock) IN new
common stock, and the latter So 500 600 90 per
cent of the coo issued) in new common
stock.
1t is generally believed that these terms Will
be acceptable 10 the first mortgage bondhoiders
and that the foreclosure proceedings will be al
lowed TO be pressed 10 conclusion What the
holders of the preferred and common stocks may
think OF the plan, however. is another matter.
There good many persons who. early in
the career OF the shipbuilding company. pur-
chased these stocks. and il would not surprise
Wall Street to learn Of litigation being begun
by some OF them. IN the hope of getting some
return for the money invested by them in these
securities now Threatened with annihilation.