New-York tribune., 1907-11-22
TO ISSUE MORE STOCK.
KMckerbOcEer Trust Committees s
Plan for Resum ption.

The reorganization committee of the Knicker-
booker Trust Company made public last night a
tentative plan for rehabilitation which provides foI
an increase in the capital stock from lis present
amount. a200,000, TO 100000, which is the maxi
mum authorized under its special charter. The
stockholders will have the option of taking the
eight thousand shares of stock at $500 share
paying into the company 81 10000 and receiving
an obligation OF the company bearing per cent
interest, payable on or before one year after the
other obligations provided for in the plan, ex-
changeable for stock $500 share. at the option
Of the holder.
The plan provides further that sufficient assets
OF the company shall be set apart a special trust
fund to represent the trust accounts TO which the
law gives preference All other deposit accounts
TO be paid 80 per cent in coupon or regis
tered gold bonds OF the Knickerbocker Trust Com
pany, to be issued on the date of resumption and
payable on or before three years from date of issue
and bearing interest at the rate of per cent n
year.
For the balance of the deposit, certificates of de-
post to be given by the company, of which 10
per cent of the amount can be withdrawn one
month after resumption, per cent two months
after the first withdrawal. and the remainder in
instruments OF per cent at intervals OF two
months. Interest at the rate of per cent year
will be allowed on balances due these certif-
Gates.
1t was stated that as soon as in the judgment OF
the committee enough stockholders and depositors
have assented 10 the plan it will be declared oper-
ative and that soon thereafter as the permls-
sion of the Supreme Court Of the state TO resume
business has been obtained a date will be fixed for
the resumption of business by the company. The
members Of the committee are 10 serve without
compensation. and the right reserved at any time
modify the plan, and any depositor has the right
TO withdraw his assent within specified time.
The plan does not. the whole, differ greatly
from the plan of the Untermyer committee Of de-
positors, which was published in The Tribune a
few days ago. The latter provides that for the
$4,000 subscribed by the stockholders the latter
are 10 have the option OF either stock at $500 a
form of obligation. while the Untermyer plan
qures the stockholders to take stock at $500, and
does not give them the option of having an obiga-
ton Of the Trust company. If they take stock at
$780, the Untermyer committee says. it will furnish
a surplus of 81 800 600, which would go to strengthen
the bank If they take obligation IT would be
obligation Of the company, and would go 10
weaken the bank. the committee says
The Untermyer plan it will be recalled requires
the directors and stockholders TO form syndicate
for the purchase Of all deposits 10 the amount OF
500 and under and to go into the plan with these
deposits but under the directors plan all deposit
ors are treated alike. One Of the directors IN
speaking of the fact the small depositors were
not to be favored, replied that they would doubt
less have resented being made objects OF charity.
4 representative Of of the depositors commit
tees said that the two plans would form the basis
for conferences and negotiations. out OF which
compromise would perhaps be evolved
Julien T. Davies counsel for the directors COM
mttee stated that under fits present cnarter the
company had no authority 10 increase its capital
stock beyond $2.0OOOOO. The UntermyeE plan con-
templates however that before it takes effect this
authority shall have been obtained by amendment
OF the charter through the Legislature.
Mr.. Davies in giving out the plan OF the COM
mittee stated that II only tentative. He added
that il had been formulated with view TO the
fact that about 100000 of the assets of the COM
pany had been withdrawn before it closed its doors
and that for this it was necessary TO have
time in which TO pay off the depositors