The news-democrat. (Providence, R.I.) 1906-1909, 1907-09-04

The Vanity Fair company is to be re-
organised
This fact was announced last night. when
park Office In East Providence to con-
slider means for a proposed readtuetment
OF the companys affairs. While the re-
cepts have eDoeeded the expenditures for
the season, claims for construction work
have been pushed recently and the COM
pany Is finding difficulty In meeting them.
On Aug. Is a committee consisting of K.
p. Lynch, John ]. Banigan, o. s. An
thony, M. N. Cartier and Ralph 7. Barne~
deld, which had been appointed at pre-
vious meeting, was instructed to send to
each creditor a letter in which the Vanity
Fair company offered, through its board
OF directors, TO issue per cent. bonds
for the amount of the Indebtedness over
and above the first mortgage OF $4,000 to
the creditors, such bonds to be OF the de-
nomination OF $50 each. secured by second
mortgage on the property, and each bond
TO carry with II one share OF the prefer
red stock OF $50 per share. In case this
offer was accepted and adopted by all the
creditors Mr.. Banigan promised to take
bonds for his second mortgage OF $4,000
and so long as the interest lie paid upon
his first mortgage Of $4,000 to forbear
from taking any steps OF foreclosure or
otherwise under this first mortgage until
1t was said that under this plan the
creditors have everything that II is pos
sibie for them to have. namely. all the
property OF the company, and also.
through the ownership of a majorty OF
the preferred stock, the voting control OF
the company. with the ability to elect
directors and dictate the company's bust
ness policy.
1t was said that the Vanity Fair
company have under consideration n
proposition from another body of men,
with apparently ample capital. TO lease
all the property at an annual rental OF
e35.00o per year, payable quarterly In ad-
vance. with an option OF purchase at
S75,0o0. and that the Vanity Fair COM
pany is willing to execute a lease In case
certain details connected with the offer
can be arranged to the mutual satisfac-
ton Of the lessor and lessee.
The lessee is willing, in case Of
lease, 30 give a bond 10 secure the pay
ment OF the first years rental, and II is
said that they would spend in the neigh
borhood of $4,000 In improvements during
the first year. which improvements would
revert to the Vanity Fair company in
case the option TO purchase was not exer-
cised- In case a lease Is executed, such
lease would be auxiliary 10 and con-
nected with the bonding proposition.
The only other alternative the company
could see Is that OF insolvency and the
administration OF the affairs OF the COM
pany i'm the courts
A vote OF the creditors present resulted
In all but three being in favor OF the
bonding proposition
At the suggestion of Judge Thomas u.
Lee, representing the Vanity Fair Amuse-
ment Co. after II appeared that most of
the creditors who had liens would not
agree to the bond proposition, II was A.
naily decided to appoint a committee con-
sisting OF John ]. Banigan. o. s. Anthony
and r. p. Lynch. representing the Union
Hardware company, to confer with two OF
the Vanity Fair directors. the creditors
committee to have full power 10 settle
matters for the other creditors. This ac-
ton was taken and the meeting adjourn
cd
Next to Mr.. Banigan the largest credi-
tors are the Anthony Coal and Lumber
company. $4,000: Union Hardware com
pany $4,000: Lynn Incandescent Lamp
company, 5000 All OF the largest credit
ors are secured. and the difficulty in ar
riving at a settlement has been due to the
unwillingness OF the secured creditors to