The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1904-02-05
CONF PR()kl.IS,E||::, !
AGREED. ON. n
Litigation Overt nited States
Ship-Building Company Is
Now5to End.
NEW COMMITTEE is NAMED
Maxi M: s. Has Been ! l:yc Removed.
Elihu; Root Counsel for Syn
dicatc Managers. NJ,
t.i..s
az y 4 h sla " <
ifHvS, a ssoria tad PresN ! J

tre1Hy
NEW 5YOIaK K. Feb After frequent
conferences, tie long fight between the
Sheldon reorganization committee in
United States Shipbuilding Affairs, and
{ tho bondholders' protective committee.
represented by Samuel Untermeyer, was
Settled tonight I BY, the formn nlation Of q
ne " plan, Which sslas been agreed to by
both Sides and s}theS lltiga ton In which
j Charles NJ. Schwab Z has II been tho CEN.
tral figure will end.
Y Max Pam has BEEN removed from the
decentralization committee and Pliny Fisk,
the banker, whose house will. take part
of the. worl. Of Financing the new COM
pany takes his place. while lax Nathan.
of the International Pump Company. has
been agreed oil as An additional mem-
ber of the committee to represent the
protective committee.
5 Tho new pan, made public by William
Nelson Cromwell, is put out as coming
from Receiver Smith, and provides for a
new company. with q capitalization Of
thirty millions. half preferred and half.
common, Mr. Schwab, as the owner of
tho Bethlehem bonds, to get nine MIL
! ons Of preferred and six millions Of
common stock, and the first mortgage
fbondholders to get tho remainder pro
rata. Mr. Schwab givessup his prior lien.
on bethlehem and all the present stock.
is wiped out. f Tho preferred stock Is TO
be seven per cent. non-cumulative.t3s, t'
There are to issued three millions OF
collnteras trust sinking fund 6 percent.
ten year g,,.d bonds, which are 10 be
taken up byEn syndicate, of which the
Morton Trust Company and Thomas F.
Ryan are to he managers, and Harvey.
Fisk and Sons participants, the latter
to market tho bonds. The bonds are to
be sold to the syndicate at $40 2nert 1000.
Former Secretary OF War Elihu Root
is counsel for the syndicate managers
The now Reorganization Committee Will
consist or George r. tShelden, chairman;
Charles S. Fairchild, John 2. Borne
Fliny Fisk. Charles w. Wetnorc and
Max Nathan
OtherJlterms OF the compromise. to
which they have fought for up to tho
last moment, include Il provision that
the expenses Of tho fight OF tho
sBondholders' Protective Committee shall
be paid as a part Of the expenses of re-.
organization, With. the. REORGANIZATION
there.swas made public a circular from
Harvey Fisk and Sons Offering the new
issue of bonds. Mr.. Cromwell announced
tho retirement of Max Pam.
Mr.. untermeyer admitted that the fight
In, the courts was practically settled. and
.thatsit will now be dropped as far as tho
litigation. is hostile to Mr., schwab, Mr..
Schwah will not beH called upon to tes-
tIfy,, The pending case will have to go or
formally and the matter OF testing the
validity of theS so-callede "fraudulent"
bonds will be taken up In earnest, No
mention of. these bonds is made IN tho
compromise plan. 81 .9. 3i
Whether, thts will settle all litigation
remains to be seen. It was confidently
predicted that the Commonwealth Trust
interests would agree, but this Is not, a
matter of certainty. There arc a number
of stockholders who have threatened to
bring suits and the upstate interests
who have Just entered the field also
are to be considered In the matter Of
litigation.