Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1904-02-05
SCHWAB DISGORGES.
Gives Up s20,0Oo,0Oo of Ship
gbuiIding Trust Stock.
A New and Satisfactory" Plan Of
Settlement Is Ann uncsd.
Ana Litigation, So Far as Schwab Is
And Litigation, So Far as Schu,h ,s
Concerned, Is Ended.

New York, Feb. AFTER freouont
/ conferences the long fight between tbe
SheIdon reorganization committee i'm
united States Shipbuilding affairs and
the bondhoiderS' protective committce
represented by Samuel Untermyer. was
settled. tonight, by the formulation Of
Il new pan which has been agreed To
~ both sides, and the litigation in
which Charles NJ. Schwab has been the
central figure will end.
Max Pam has been removed from
the reorganization committee and
Pliny Fisk. the banker whose house
will take part of the work of financing
the new company, takes his place. Max
Nathan of the International Pump Co.,
has been agreed on as an additional
member of the committee to represent
the protective committee ''"'"' ""'
The plan made public by William
Nelson CROMWELL is put out as coming
from Receiver Smith and provides for
a new company with d capitalization
of $3O.O00,0O0 half preferred and half
common, Mr.. Schwab as owner of the
Bethlehem bonds to get $4,000, 600 Of
preferred and 100000 of common
stock. and the fist mortgage bond
I,
Schwab gives uD his prior lien on
Bethlehem and all the. present stock is
wiped out. The preferred stock will
be per cent. non-curnulative.
There are to be issued $4,000, 900 of
collateral trust sinking fund per cent
1O-year gold bonds, which are to be
taken up by syndicate of which the
Morton Trust Co. and Thomas f. Ryan
are to be managers and Harvey Fisk
& Sons participants. the latter to mar
ket the bonds. These bonds are TO be
sold to the syndicate at SIS per 1000.
Former Secretary of War Elihu Root
is counsel for the syndicate managers.
The rev reorganization committee will
consist of George r. Sheldon. chairman:
Charles S. Fairchid, John Z. Borne, Piiny
Fisk. Charles w. Wetmore and Max Ma
than. sN
With the reorganization plan there was
made public a circular from Harvey FISK
& Sons Offering the new issuesof bonds.
In giving out the new plan Mr.. Crom-
well said: sssszsS
The new plan provides for the level
ing Of all existing mortgages. No rrovis
ion is made for the old preferred and COM
mon stock. St.s
MIR. schwab and the .hrst mortgage
bondholders come in Oman equal footing.
His prior lien on the Beth1Ghein r1ant has 4
been given up by him. assNeli as $50, 900 oo1 I
in the stocks of the company.s q 8 3 s Z ~
1.-The plan places the new COMPANY on ttt8
strong footing with fixed charges Of only y
sSJ1.eJ0. The plan for the voting trust has
been abandoned and instead there VIII be
u board of directors selected by the reor-
ganiZation committee and the receiver,
with the approval of the syndicate mana
gers
After Mr. Untermyer announced. to-
night, that the plan had his approval
with one or two minor exceptions. he adj
nitted that the fight in the courts was
practically settled and that it will BE-
dropped as far as the litigation is hostile
to Mr.. Schwab. Mr. Schwab will not be
called upon to testify. The pending case
will have to go on formally, and the mat
ter of testing the validity OF the so-ca!led
fraudulent bonds will be taken up in
earnest.