New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-01-28
NO PLAN YET ISSUED.
ShipbmIding Interests Again in
Conference.
DEMANDS OF BONDHOLDERS.

Earnest efforts were made yesterday by the va
rious interests DESTROYS of efectng the speedy re-
organization of the United States Shipbuilding
COMPREHENSIVE of the interests represented in
the bondhoders protective committee. who are not
participating in the negotiationsto reach an agree
ment on a modified new plan of reorganiza ton
The conferences continued during many hours. but
late IN the afternoon II was understood that no
agreement satisfactory to all the parties in interest
had been arrived at
The bondholders' protective committee, it is
learned have added another condition to those al
ready published which they would assent to
plan Of reorganization. demanding now that the
plan must provide in express terms for the pay
ment in full Of the floating debt of the shipbuildng
company and its subsidiary companies. estimated
to amount to about 81. 10000 in all The members
Of the bondholders' committee will accept the
feature Of the plan which fixes the capitalization Of
the company at 100000 stock, equally divid-
ed between common and preferred, but they insist
100000 of the preferred for the first mortgage
bondholders and $4,000 for the second mortgage
(Schwab) holdings instead OF 100000 for the latter
and 100000 for the former. proposed in The
plan under discussion. They also insist that
the first board of directors shall he elected for
period Of three years and shall not be dominated
by Mr.. Schwab. They object TO the proposal to
raise new capital by the sale to a trust company
Of 100000 prior lien notes at So declaring that the
notes could readily DO disposed OF at So out of
the proceeds of these notes, they say the SS0OOO0
balance which. with the earnings of the Bethlehem
Steel Company, would be sufficient to enable the
shpbuildng company to resume operations with
out being cramped for working capital
II is also in the schedule of the bondholders COM
mittees spulations that in the reorganization plan
no recognition be given to the 100000 so-called
fraudulent bonds. of which 100000 It is said.
stood in the name Of John W Young and s250OO00
were given to the vendors of the several shipyard
properties. Unless all Of these conditions shall be
met in the perfected plan Of reorganization, the
members of the committee say. they will fight the
plan when, If and issued
As 10 the fraudulent bonds" II IS understood
that the Young bonds and the bonds of the Eastern
Shipbuilding Company were disposed of in the open
market some time ago, and they have thus passed
into the hands Of innocent purchasers for value
without notice il is the position of of the in
terests who working on the reorganization plan
that the exclusion Of these securities from partiC-
patton In the new stock allotment would work q
hardship and an injustice.
The hearing in the, foreclosure proceedings
brought by the New York Security and Trust Com
pany and Charles NJ. Schwab in the United States
Circuit Court against the United States Shpbuild-
ing Company and Receiver Smith. set for yesterday
before the examiner John A. Shields. at the Office
OF the Standard Trust Company. has at the request
Of counsel representing all the interests IN the i-
CATION been further adjourned 10 next Wednesday.