New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-01-29
SHADING SHELDON PLAN.
NAY SELL NOTES At 90.
Untermyers Hot Reply to RecelU-
er's Statement.


Sheldon plan for reorganization of the United States
Shipbuilding Company was reached yesterday al
though further conference Of the Sheldon COM
mittee, Schwab and Commonwealth Trust Company
interests held. It is learned that the PROPOSE
ton 10 sell to a company at 50 the projected
Of 100000 prior lien notes Of the reorganized
shipbuilding company has not been well received oy
Of the important interests represented IN the
conference, and that there is now under discussion
proposal for dsposing of these notes at not less
than 30 and also giving the stockholders or the new
company opportunity Of subscribing tor then
The Sheldon syndicate expires by Limitation to-day
and will be dissolved. the Shipbulding securities
held by it being then distributed among the SUD-
scribers, upon whom five calls, aggregatng 80 per
of the total purchase price of these securities
taken from the old Trust Company OF the he
public nave been made. 1t is believed that on the
dissolution of the syndicate a large proportion OF
the bonds then returned to the subscribers will be
pledged 70 the Sheldon reorganization committee
Ex-senator James Smith. jr.. the receiver of the
ed States ts %oF 81 yss nteTcs
which are endeavoring to form an amended i reor-
he I said d:1 '''''' anu '-''O -N'''0O 49,
I have submitted a plan by which all the bonds bonds
held by Mr. sGhwab shall Be retired and s s5Sek
advantage. There have been many conferences re;
966 a Mds sse sy H aye Signing dr
Then something would happen. and all would be
now than We were last summer, but can't tell
when | may be sent for and informed that a de,
cision has been reached Last Friday thought II
was settled.
sYMPATHIzEs WITH sCHwAB.
Mr.. schwab has everything that is worth any.
wants 9 se Il Backk ana fi why s' sho1dn
PAID 81 10000 for It. and since he bought II SoO4"n
worth SIl 10000 If the creditors of the company
Gains that would cost st the Company only $4,000
Therefore. it should b" done With that II the Beth;
doas Is W1Efh o muGh more than that fb as b
fore them to-day.
s @ M S tb Tdpt Se to ous s al 10 be be
satisfied with settlement under the terms Of my my
fight, bringing benefit not only to his own clients.
but also to other security holders 49,.
met lot OF sharp LAWYERS and smart bankers.
anf pretty soon they would think they p b
al we get back to the original question It is not
day They have my pFoposon before them but
| am waiting for them to call ME up and close
the matter.
Replying to the statement made by Receiver
Smith. Samuel Untermyer. representing the Bond
holders Protective Committee. made the following
statement
have the highest regard for the receiver and
heretofore rendered in the exposure OF this gigantic
Ra he cs or wha he Believes to be the
interest Of the security holders but do not share
cuss the merits Of plan when one is submitted to
me. We must not lose sight OF the fact that, the
t6at would cost many millions e replace They
nave actual tangible assets equel 10 % cents on
the dollar OF their bonds, with no prior Hens. Mr.
schwab holds a contested and discredited third
Of po cam II or instance saof the
6gd b should be est M BY e or on 99 s wha
gsge? The shpyaEds are scattered "a They co1lS
on the first mortgage bonds.
: one must also bear II mind the fact that NJ;
his mSTgaEe be valid t and there Is any equity in
IL as the receiver states 10000 Of pTOa.s have
al In nafh ahepN eip NJ CNf n
SeGsht i IN June 49, Period y eghisen @on!6
why are, we dealing with hopelessly wrecked
company. not to MT schwab Why are they being
ali nsy re TO on 'hf s bonds
woTia saT o o been paid hey amount In all to only
be ample working capital left FOR he company g
s. 10000 in the last three months. enough to pay
all arrears
HE CALLS IT AN OUTRAGE.
why should the people to whom these earnings
force? Il is the most hrazen and shameless exhibit
9n IN t hsi9Ty 1t is almost crime TO
With ali due respect to the receiver 1t seems to
that his statement furnishes the most con-
elusive reason for the energetic and praseworthy
action ne has no taken no cal t
SRe M sSEWb goes Sc away Ray With VII th bu Of &
This controversy will not be settled until IT is
settled right While the views of the receiver will
have weight with US, we cannot permit them n
that the receiver makes with Mr. schwa6 viii Stop
the fight of the protective committee against the
validity Of Mr.. Schwab's mortgage unless we, as
well the receiver. believe the settlement to be
In the interest of all the bondholders. Tho only ef-
feet OF such settlement will be TO substitute in
place Of ttg Sheldon pan the present proposed
plan presented we do not believe to be just
shall most reluctantly part company with the
hghting the Sheldon plan. We are. of course.
grathed by the belated confession and surrender
Of the Sheldon plan long since predicted by US.
The announcenient by its authors OF the death and
burial of THAI attempt TO conscate the rights OF
a Rf n'S' mortgage 0ononO0eFS was well worth the
The protective committee has been advised that
the Schwab mortgage is void and can be cancelled
Since the served his answer attacking that
mortgage there has been no change in the situation
concerned. 1t is no better and worse than II
was then M, II me mortgags Is set aside the bond
this mortgage is claimed to be void are well under
rfSe- defnca pternosed hg1 vqd there is the
about the sounduess OF which there appears 10 be
little doubt, that inasmuch the Bethlehem COM
pany has earned many times the interest on the
bonds held by Mr. Schwab. the courts will not be
likely to allow Mr.. Schwab. in control OF that com
pany. to withhold from the company out Of its
vast earnings the money with which to pay this
The question is not one. and no instance
be found In which the courts have ever up-
the brazen manner in which the bondholders were
swindled the remedies they have invoked have thus
far been extremely moderate Their position is
legally unassailahe, and the equities of tho case
are so strongly with them that the opportunity to
minister poetic justice should not be frttered away
for trining concessions.
The bondholders have been wasing unselfish
tight to defeat what they ielt was an attempt to
they have only partially succeeded If driven s to i s9
further, they will go on to the end: H. however
will have accomplished their purpose We may
Justly be pardoned for attaching little Importance
is justice the bondholders represented by that
committee. when one reflects that they are the
rights of the bondholders embodied in the Shell
don plan now abandoned after fierce struggle OF