New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-02-05
SHIPBUILDING WAR ENDS
ALL FACTIONS AGREE.
Modified Reorganization Plan-Nao
Pam off Committee.

the day and night yesterday. the long fight be-
tween the Sheldon reorganization committees
in the United States Shipbuilding affairs and the
bondholders' protective committee. represented
by Samuel Untermyer, was settled by the for
mutation of a modified plan Of reorganization.
which has been agreed TO by both sides. and tho
litigation in which Charles NJ. schwab has been
a central figure will end To be sure. the field
has been left free for attacking the four mill
fons-odd Of so-caIled fraudulent bonds which
were issued as bonuses. but this was part OF
the compromise.
Max Pam has retired from the reorganization
committee and Pliny Fisk. the banker. whose
house will aid in financing the new company.
takes his place; while Max Nathan was agreed
to as an additional member OF the reorganiza-
ton committee to represent the protectivs COM
rnfttes directly as the last concession late LAST
night
The new plan. which was made public by
William Nelson Cromwell at his home lasc
night Is put out as coming from Receiver
Smith, and provides for new company with
a capitalization Of $30.O00OO0. one-half per
cent non-cumulative preferred aad One-half
common. Mr.. Schwab. the owner OF the
BethIehem bonds to get S9.GO00O0 OF preferred
and S6OOOOO0 Of common stock. and the hrss
mortgage bCndholders to get the rest. pro rata
Mr. schwab gives up his prior lien on Beth
lehem and all the present stock is wiped out
There are 10 be issued s3.O00oO0 Of collateral
trust sinking fund 8 per cent ten-year gold
bonds. which are to be taken up by a syndicate
Of which the Morton Trust Company and
Thomas F. Ryan to be managers. Harvey
Fisk & Sons are to market the bonds. which
are to be sold to the syndicate at ot13-
The holders Of the s1OO00Ooo present secoud
mortgage bonds to have the option Of sub
sersbh,g for $3.50 tn the bonds for eacn
Z k]fl o. n
first mortgage bonds can subscribe at the rata
OF 500 IN new bonds for each $1,000 Of their
present bond holdings.
F,Iihu Root IS counsel to the syndicate man
ayers The reorganization committee VIII
consist Of George Z. Sheldon. chairman: Charles
8 Fairchild John E. Borne. Pliny Fisk. Charles
w. Wetmore and Max Nathan. the latter having
been agreed to after the printing OF the formal
notices issued by Mr.. Cromwell. and In fact.
after Mr. Cromwell had made them public MI
Irntermyer. Mr.. Cromwell and Receiver Smith
having held a telephone consultation. with the
result Of an agreement to this. Other terms OF
the compromise. TO which both sides gave up
n anv things which had been fought for up TO
niEhtfaIl. include a provision that the expenses
of the fight OF the bondholders protective COM
n.ittee shall be paid part Of the expenses
Of reorganization
In giving out the plan at his house last night.
Mr.. Cromwell said:
In view Of the attacks that have been made upon
pa9Ss fs9 htsatio on ihe ground that schwabs
personal attorney was mernoer OF ,ne St fbsrs
would be no occasion vt excuse for any slaln tnaI
Mr. senT9 N9s X Psm ecde 70 relieve fb-
ti9n from any such & P%sylos as Tpenbsr
OF tse COMMITTEES and as one Of lts counsel I InS,
Ffsk & sons was elected member OF the COM
rnittee in IIr PANS place.
Mr.. Cromwell added that the plan had been de-
Cided upon after having been submitted 70 all
the persons interested in the shipbuilding mat
ter 1T has not been sprung suddenly on any
body They have all seen it," he continued IT
fs row put out after all interests have been con-
sdered. but without consideration for any op-
position that may arise" cat this time a late
afternoon conference with Mr.. Untermyer had
resulted in a Gisa greement9
The new PLAN continued Mr.. Cromwell
provides for the Ievelling of all existing mort
cages and IT is to be noted that no provision is
made for the old preferred and common stock.
which. as is now apparent to all. has no possiois
value
aNr. schvab and the first mortgage bond
holders come I'm on an equal footing his Pr1Or
lien on the Bethlehem plant. property every
whore acknowledged 10 be very valuable. and
which even now is making profit OF $SOooooo
n vear. has been given up by him. as we'll as
S9OOOA 600 IN the stocks Of the company
..-ha Man places the new company on strong
.oo,ine with fixed charges Of only Ss9I,0JO. The
rlan for the voting trust has been abandoned.
and instead there will be a board OF directors
selected by the reorganization COMMITTEES and
the receiver with the approval Of the syndicats
managers.
After Mr. Unternyer had received a copy OF
The new plan there long conference. evil
IDENTIFY over the telephone. which lasted TIL late
IN the night At the end Of this he announced
that the new plan had his approval. with one or
t7ro minor exceptions Mr.. Untermyer made ths
following statement In regard to IL:
1-,der the guidance Of the receiver we have at
last evolved a plan which does a fair measure OF
s,-.stc ~ rhe bondh0lferS. IL in striking con-
frsst with the ndefensible Sheldon plan that pre-
cfnitatad this contest The hnaI cola pse AMI
abandOuu1ent OF that attempt 20 confiscate tho
bonds Is a reminder that security holders who
choose to invoke the protection OF the law and
rave the courage TO assert their rights always
safeguard their interests.
IL has been arranged:
First-That Max Nathan, OF the bondholde-s'
protective committee. becomes member OF tho
new reorganization committee
Seccn5-That Max Pam disappears from the COM
uittee and Plinv Fisk takes bis place.
Thiri-Thtt all the charges and expenses OF ths
protective committee are borne and paid part
Of the REORGANIZATION expenses
FOurth-That the COMMITTEES. as reconstructed.
with the receiver. selects the new board OF di-
These changes insure COMMITTEES and Board