New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-01-30
DISPUTE OYER THE RONnr
Rights of Sheldon Syndicate Man.
ayers to Turn Deer Secur;t;s,

Inc Sheioon syndicate. formed IN October 10.
10 take over from the Trust Company OF ~ D.
puohe S.SooOoo hrst mortgages bonds OF ths Tr,s~s
states Shipbuiding Company, with Ubic. $50
also an equal amount OF the copno, passef
szISoOo OF the preferred stock expired -, ,I a1a
ton yesterday. II had been ssnerarTv ".1-. a.
that upon its expiration the securities bs,S
syndicate managers would be distributss - ne
the subscribers to the syndicate bur this $50
mas not bean pursued, as the following anpo,1"s
ment shows: A'1hee-
William Nelson Cromwell COUNSEL =, a.. +
oon syndicate, whic hexpires by HmitstorH s s5e-
building bonds covered by tbe sv1s nat ne Ship
to- ee sGoJsct 20 withdrawal from the reorea,,-
vd Z ursn5 5 TO the powers OF the syndicate
5onds w. % Ss oesIe o. It's members ali Of rSs
ton plan. and certificates Of deposit wsr sanlza
o45eT precisely the same in respect Of ssa
~, 1t is these certificates OF deposit. and ~, -.
dictate managers who have secured 20 ~ me syn
psrs tne protection and benefits OF the reorz s-
The expiration of the Sheldon syndIca,.
which remains GnaTected 81 a1 thar az !rsoTganzadOa
MnIcn plan the bonds remain deposi,sd a. IN
owners more than ss0oSeO Of tbs ai'hough thu
astsed 70 act with the Sheldon reorganzaqiSs aass
u deposit referred TO by Mr. CromEsn etacatss
eaonrtt 5s aoc5uona amounts Of bonds waut tbI
securltles and are about 70 serve noticA ~ Ger
postary trust company not to turn over ib ne ae-
myer eou5 5se S9e PEI committee Samuel Inter
committee. when asked az 10 Mr. Cro7, sIiotectys
uOh, said that he mad doubt Of fba POSE
every member OF the Sheldon syndicate =, 'tSa1 o.
mediate return OF his bonds He undersfoe ss m
some members OF the syndicate had conss,t.s las
thelr bonds De deposited with the conro,sau lnas
tnat others had not. but whether thev $50 aad
sented or not they would, IN his oui1i5n leu con-
ollculty In enforcing the return OF ther ba-ss 40
reasons. he added. with which Mr. Cror,1a11 s for
very familiar. There was, however ore - Vas
siVe reason which might be pubicIy $500. SS1nelu-
NE Sheidon committee would not be abIA - 49,
these bonds against the protest OF the sv.s aosa
members; this was that the Sheldon pian 80 S Sase
abandoned II any plan should BE- nrsS - oeon
radically different from that the bnnS5oeiI.ssso-
would OF course, have the right 70 wthdrsvv' .I
bonds. '-1i4" tAeir
The representative OF one Of the mos, ,r,n,-...
interests 20 be dealt with In the matter al vs
terday that ne thought there was no precs5s,t =
support Mr. Cromwell's position He corsi5s-ss99
u untenaDie that reorganization committee corIS
hod securltics deposited with Il in favor Of rs.
tain plan after the plan had been modified va
The syndicate and reorganization agresrs,,,
are worded 50 as 10 permit the Dledein9 ~ ~
syndicate stock to the reorganization Plan ana -
permit the reorganization committee TO airs- ~
ABANDON the former plan and substitute anosh.-
The bondhOlderS' committees counsel believe ho-.
ever, that the owners OF the securities can brssk
these provisions because OF their drastic charscs.r
and because, too. their signatures were obtsjns5
IN such way, II Is alleged. as TO make the agrseS
ment open to attack.
The hearing before Judge Kirkpatrick ss, Az
Monday. has been postponed for another wssk