The news-democrat. (Providence, R.I.) 1906-1909, 1907-07-18


company met shortly after noon IN tht
Palestine hall Industrial Trust annex, l'
hear the report OF their committee ap
pointed at a meeting held short time
ago.
Harry c. Curtis put motion 10 make
Col. p. Henry Quinn chairman, ana II
was adopted unanimously. a.,
Col Quinn said he supposed tne I'M nre'
business would be 10 hear from the com.
mittee appointed week ago, though u
might be desirable 10 elect secIetaiy y
Mr.. Chase. OF Burrows. Kenyon q Co.
was nominated and elected secre'arS'
NOT ASSETS AT ALL.
Speaking for the committee. John . ,,
Murdoch said three meetings had been
held At the first meeting u was dlscoN-
cred early that what appeared 70 be as
sets were not assets az all FROM ~,
vised account on one side OF the agsoI,,, agaai,,.
company and upward OF NOVjg due iIoni
che Home company. ThSse about Offset
one another
n seems that the only real assets arr
verious tracts of land. The liabilities are
sl4o. SOC. .02. including $500 In bonds, but
not the capital stock. We have endeaV-
ored 10 fnd out something about the wayS
OF doing business only 70 fnd that al
fairs are hopelessly involved. there being
30 many allied corporations.
He enumerated the Commercial Corpo-
ration. the Home Investment company
the Isaac l.. Com company. the feopie
Trust company and the Central trust
company. the Rhode Island agency. which
with the Commercial Corporation had
given a limited consent 10 examination
OF their books only as regards their trans
action with the Home Realty company
Gen. Charles a Wilson said the Central
Trust company had no connection Win
the Home Realty company ana enough
had been said about II already. he SAID.
II
attitude OF the Home Realty. the isaac
T.. Con and the Peoples Trust companies.
Mr.. Pierce said he had tried 20 obtain
consent TO examine the books OF the cor
,orations and had failed lie was not
counsel for the other companies
WAS THERE A DIVERSION OF
MONEY?
Continuing Mr.. Burdck said an expert
accountant had told him II would be use
less 10 examine only some OF the books
II seemed 10 the committee. he said, very
'irnportant that the Peoples Trust corr
pany's books should be examined. lie
related the case OF a Mr. Swanson. VINO
desired a 5000 house and lot. paid $500
and gave mortgage OF S7OO. III wouia
appear from the books. he SAID, 'hft VI
the Peoples Trust company has pald III
this money there has been diversion OF
the money.
one woman thought she owned Ger
tain property. but has no deed and there
Is nothing on record 10 show her owner
ship.
All these transactions should be inves-
tigated. he said.
WILL NOT SHOW $4,000 PAID IN.
Il am informed that the books OF tns
Home Realty company will not show thN
$4,000 has been paid in as the proeeec'
of sales, etc.
.I suppose" he said. 'the creditors feei
we should make some recommendation.
Mr.. Grimwood asked Information Win
regard 10 the bonds
Mr. Murdock said the committee had
been unable 10 ascertain. There must be
two issues, he said. as there are $5,oD
outstanding.
After this examination, said Mr.. Mur-
dock the committee was convinced that
the only assets are these tracts OF land
He enumerated the mortgages on the va
rious tracts. There is an $4,000 mortgage
on Lincoln Park and the two adjoining
properties Home Crest Is mortgaged for
S35. 425 The equity is over sss,oW. me
equity In Lincoln. Jefferson and Oak
hurst is sa9,Si7. On Thorn Mt. Park there
10 a mortgage OF s25,0oo and equity OF
S35, 900
Chairman Quinn said: These lots In
Warwick are assessed on valuation OF
$3.50 EACH
Mr.. Murdock continued: 'The majority
of the committee this morning found
three courses open: A deed OF trust would
be given a trustee by the Home Realty
company to continue the business, Mr..
Pierce, its attorney, states Another is
common law assignment, which would be
disastrous as the assignees powers would
not be broad enough. The third is bank
ruptcy. Bankruptcy. he said. would va
cate all the attachments and allow all the
creditors to come In on common level
Mr.. Pierce said he would advise that.
Mr.. Gray, counsel for the Commercial
corporation. said: 80 far Is know there
has been but one bond issue" He repre-
sented $4,000 OF bonds. He refused TO
answer how they were paid Tor.
You know how, of course" said Mr..
Curtis. II presume So" said Mr. Gray.
''Do the holders of those bonds act as
creditors7" asked Chairman Quinn. They
would come In ON the same footing as a
promissory note made by the Home Realty
company" said Mr.. Gray.
Mr. Curtis asked II the Home Realty
company had the power 10 issue these
bonds. Mr.. Pierce thought It did.
James A. williams asked IL there was
anything on the Home Realty company's
books 10 show that the proceeds OF this
bond sale had come 10 the company
THAT is a question ] have asked
dozen times" said Mr. Murdock. but
] have been able To get no Information"
The bonds appear on the ledger, but
simply as a journal entry" said one
creditor.
Col. Quinn suggested that the commit
tees recommendation was the best thing.
for these reasons: Mr.. Pierce's proposition
has been turned down. and no trustee
can be appointed because some OF the
attaching creditors will not release their
attachments. The lawyers can see no way
so prompt or effective OF getting into
court as bankruptcy proceedings. Proper
witnesses, corporation officers could be
brought on and examined under oath.
The corporation we desire To examine
most Of all, the Peoples Trust company.
has refused don't believe II really owns
all these mortgages. but they are held
outside. He cited cases In point The
records showed. he said, that the mort
cages were really held by the People :
Trust company.
II is important that we should examine
this company and also the Isaac l.. Con-
company. There are creditors who ques-
tion the validity OF this Warwick proper
a. and possibly on other property He
did not see how bankruptcy would be as
costly as trustee.
The only objection " that trustee
would close out the assets and not get as
much II forced under sale as ne could