New-York tribune., 1907-11-01
THOMASES STAND PAT.
PHILADELPHIANS ANGRY.
Conference in Regard to ProUident
Life Stock Futile.

The conference yesterday afternoon between repre-
sentatives of Z. r. and O. F. Thomas and syndi-
cate Of Philadelphia capitalists and insurance men
amounted 10 nothing 1t was hoped that the Diff
ferences arising the sale of the stock held
by the Thomases Of the Provdent Savings Life
Assurance Society to the syndicate would be ad-
justed. but no decisive action taken, and n
final conference will be held at o'clock this after
noon.
After the meeting counsel for the syndicate said
that the Thomases had been told that they must
either furnish ample security for the delivery of
their stock within ninety days return all cash
and notes that mad been given them in payment
for it, The Philadelphians have decided to take
radical action in the case, decision that has
been deferred because of the effect It might have
on the company. Just what the nature of this ac
tion will be they declined to say, but remarked
that II would b. intrusteG to Morgan J. O'Bren.
New York counsel for the syndicate. who
familiar with the statutes of the state"
That the situation IS worrying members OF the
syndicate is admitted by them. They have paid
10 the Thomases. under the terms Of tho sale
agreement, 100000, and given them notes aggregat-
ing. II is said $4,000 more in return the
Thomases have failed to deliver. in accordance
with the agreement. the stock Of the Provdent
company which they hold, or bonds of the Western
Ice Company which they also hold. and which
were included IN the bargain
What the Philadelphians consider the most wor-
rying phase OF the situation Is tho dscountlng Of
some of their notes which they say the Thomases
have already had done Those notes must and
will be paid" said Judge Bartch OF counsel Cor the
syndicate. The banks through which they We're
discounted innocent parties. and must not
suffer. Ny clients will honor the notes"
The Thomases It is understood. rejected at the
con creme, yesterday all the ..,s a1itlo s lae -
them By tho syndicate They refused 10 return the
notes and pay back the cash. deliver the P:ovt-
dent company stock and ice company bonds IN
turn. and through their counsel. Edward Lauter-
bach. delivered this utimatum: We have fulfilled
our part Of the contract You do what you
like"
Their position. according 10 Mr.. Lauterbach Is
the same that it has been for the last few days.
They hold that tho contract provides that tho
syndicate on receiving the stock from them. must
return II To them be held 10 secure It's notes e
would be useless actually to deliver the stock But
ter each side had delivered itself OF IT'S "ulti-
Ltum' AZ the conference Mr. Lnuterbach later
ctlled up Mr.. OBrien and asked that another con-
ference be held this afternoon. This request
granted. and it II hoped that an amicable settle
OF the questions involved VIII then be reached.
"If the Thomases do not accept our ultimatum.'
said Judge Bartch. and thus bring the matter TO
a satisfactory conclusion wa VIII consider what
rights we have under the statutes"
Does that mean that legal action Will be brought
against the Thomases?" he was asked
Il cannot reply directly to that question" he
answered. Tho question OF action and the kind
Of action will be left IN the hands Of Mr. brien"
The situation as it now stands heatedly ex-
claimed Of the members or the syndicate, is
that we have paid 10000 and given notes for
Si,000 600 more. some Of which have already been
discounted and have got nothing in return except
control Of the company and eight shares OF its
stock 10 qualify eight Of people TO act d-
rectors. All this talk is bound TO have injurious
effect the company, although It is. believe one
of the soundest and best In the state"
Horace White. counsel for Timothy L. Woodruff,
formerly president OF the company. was at the
conference yesterday. and it is understood he IS
trying TO arrange amcabc settlement in the
interests of the company. and especially OF the
minority stockholders.
The conference yesterday not held until
o'clock although scheduled for 1t did not
last than ten minutes. and after a rather
heated discussion terminated in Mr. Lauterbach
leaving declaring that all negotiations we're off.
Under the terms of the sale agreement the
Thomases were TO turn over to the syndicate
81 10000 Of bonds OF the Western Ice Company,
which they said were worth at least ST. Yesterday
John ]. Coyle. Of the syndicate. attempted to find
out just what the market value of these
bonds "They have some value he said in the
evening but Just what it IS l don't know This
is another subject that will be taken up at the
conference this afternoon.
Timothy L. Woodruff in speaking Of his connec-
tion with the company. said last night: Following
the insurance investigation L persuaded at
considerable financial sacrifice and inconvenience.
10 take the presidency Of the company. as the in
terests Of the pocyholders had to be conserved In
1906 reduced the expenses Of the company about
5000 900 and placed It upon an economical and
businesslille basis. Having done this. sold my
stock which / had bought TO help protect the pol
icyholders and in doing so further strengthened
The institution financially. out of the proceeds
Maid into it's treasury $25o000. and also debts
amounting to $15O.000 The balance Of the pro-
coeds Of the sale barely reimbursed me.
"I then resigned president and went to Eu-
rope on my return 1 was surprised to find my
resignation had not been accepted This not
done until the purchase of the company by Phila
delpha capitalists. Since my resignation l have
received no compensation from the company
had any control in its affairs except that took
unon myself the responsibility. with other officers
of the company and state insurance officers. of
Withdrawing the cash of the company that was de-
nosIted in non clearing house institutions and pac
ing it in the Chemical National Bank. | think the
company is perfectly solvent is evidenced by
the contest for control"