New-York tribune., 1907-11-02
THOMASES' DEAL OFF.
WOODRUFF STEPS IN.
ProUident Life affairs to Go Into
Hands of Board of Directors.

insurance men, the deal by which the syndicate
purchased the stock and control OF the Provl-
dent Savings Life Assurance Company was de-
cIared off, and the control of the company
passed out Of the hands of both and INTO thoSe
of a hoard Of directors and finance committee
acting entirely in the interest OF the poIlc!
holders.
Timothy L. Woodruff acting in the interest
of the policyhoIders, effected a settlement be-
tween the two interests. BY this settlement the
Thomases are to return to the syndlca'e 0S
Monday morning s12.5OO in cash and cer'illeu
notes for ss7,56O thus practically returning the
entire 100000 paid them by the syhuica'e uii0ei
the terms OF the sale agreement.
They are also TO return s1.00O,000 in notes
given them by the syndicate, 100000 or WIlc"
they have already had discounted. Four nun
dred thousand dollars of these notes are 10 De
returned on Monday morning and the remainder
within the week.
Pending the return of notes and cash the
syndicate viii retain possession of the boakI OF
directors and Of the eight shares or the COM
pany's stock, which is all they succeeded in get
ting from the Thomases in returp fer their notes
and money.
AS soon, however as IL has received from the
Thomases the money and the notes the syndi-
cate will return the eight shares. and its men,
Will tender their designations.
The Thomases, 1t is understood, have agreed
to turn over the proxies of their stocks to the
banks which hold the stock at present as collat-
eral for loans made to them. These banks in
their turn will transfer the proxies TO Mr.. Wood
ruff who until recently was president Of the
company. and he will use them to elect n board
Of directors and a finance committee that will
best conserve the interests of the polcyholders
and strengthen the company. Mr.. Woodruff in
tends to have men elected whose names will of
themselves be guarantees of ability and reli-
ability.
Another meeting between representatives of
the Thomases and the syndicate will be held in
MT. O'Brien's office on Monday, when an agree
ment practically annulling the first agreement
will be drawn up and signed and final arrange
ments made for the return of stock and cash.
After the conference yesterday Mr.. Woodruff
gave out the following statement
In view of my past relation to and deep inter
est in the welfare OF the Provident company and
for the preservation Of the interests of its forty
thousand policyhOlders and the preservation of
its excellent business undertook TO bring about
adjustment and have succeeded in sbrnging
all parties to agree upon basis for the settle
ment of all differences.
AS soon as the details are perfected, which
will be not later than next week, the manage
ment of the company will be vested in it's board
of directors and finance committee, every man
of both of which will be satisfactory to the in
surance departments OF al the states. The
men who will conduct the company's affairs
will do SO in the most conservative and busi-
nessllke way.
Members of the syndicate thoroughly
disgusted with what they term their New York
experience. But, according to their counsel
they are glad TO get out of the predicameIit
they found themselves placed in
lone thing is sure" said representative Of
the syndicate last night, my clients will never
again enter into a contract or agreement with
out having counsel present TO advise them
This they have been taught by the result OF
this transaction. They have secured nothing
but experience They have not gained a thing.
But we are glad TO get out Of this affair as well
as we have. which is badly enough
The Philadephans returned homeNhst night
They will be represented at the conference
Monday
Under the original agreement the Thomases
were to deliver to the syndicate all the stock of
the Provident company they held, together win
81 100000 of the bonds of The Western Ice Com
pany. for S., 10000 OF this amount the syndi-
cate was 10 pay 100000 on the day the CON
tract was signed when the Thomases. too, were
to turn over the stock and bonds. They were
also to give 81 100000 in notes. and the remain
ing 10000 was to be paid when certain other
conditions we're fulfilled.
The syndicate turned over the cash and notes
in compliance with the terms of the agreement,
but the Thomases failed to 5deliver either stock
bonds, claiming that assthe contract also
called for its return to them. to be held secur-
ity for the syndcatc's notes, there was no
necessity for their turning it over.
The syndicate demanded the immediate return
of their money and notes and the annulment of
the agreement or the delivery of the stock and
bonds in compliance with the contract. Edward
Lauterbach met representatives Of the syndicate
on Thursday and refused to accede to either re-
quest. I'VE have fulfilled our part OF the agree
ment," he said, nov you do what you like
Counsel for the syndicate intimated in reply to
this ultimatum that unless the Thomases made
a satisfactory settlement counsel would be in
structed TO take action against them. Mr..
Lauterbach then left the meeting. but later
called up Mr.. O'Brien on the telephone and
asked that another conference be held Fri
day afternoon. This acceded TO.
In the mean time Senator Horace White, coun-
sci for Mr. Woodruff, working to effect an
adjustment, as Mr.. Woodruff recognized that any
legal action must work injury to the company
Yesterday morning Senator White met Mr.
Woodruff and told him that unless he acted at
no settlement would be reached Mr.
Woodruff decided to take a hand and the result
was a settlement, though how he accomplished
it is more or less problematical
The syndicate, although much disgusted and
disgruntled. is satisfied on the whole with the
termination of the affair. One of its repre-
sentatives summarized the situation from their
point of view as follows: '"rhe Thomases had