The news-democrat. (Providence, R.I.) 1906-1909, 1908-01-15
LETTER REAOY
DEPOS|TORS IN
UNION TRUST CO.
CONTINUED from Page one.)

ally and not through others.
The members of the dopositors' com
mltteo have also made. careful study OF
every provision of the plan and OF the
underlying facts relating to the condi-
tion OF the company upon which the plan
is based.
''2. After such study and deliberaticn
they are OF the opinion:
''(a) That the reasons advanced by the
advisory committee for the adoption OF
the plan rather than resort TO liquida-
tion through receivers are well founded
''(b) That the estimates OF the value
OF the assets OF the company which the
advisory committee made appear to be
conservative, and that In the regular ana
usual course of business the certificates
10 be issued under said plan should be
paid according TO the terms thereof
''tc) That the best adjustment OF the
rights of depositors of all classes and OF
the stockholders possible under the cir
cumstances has been made and provided
for by the plan.
VOTING TRUSTEES EXPLAINED
The committee desires to call attention
20 that clause OF the plan creating u
board OF voting trustees. The trustees
selected are: Hon. Arthur l.. Brown.
judge of the United States district cour !;
Rathbone Gardner OF Gardner Pierce *
Thornley,. attorneys at law. director Ma
tional Exchange bank: Arthur l.. Kelley,
president of the Mechanical Fabric com
pany and director OF the Industrial Trust
company; Henry u. Sharpe, president
and treasurer of Brown Il Sharpe Men
ufacturing company and trustee of the
Providence Institution for Savings, anl
Herbert j. Wells. president OF the Rhode
Island Hospital Trust company. They
are all men OF the highest standing char
Hcter and ahflity and a nt
holders OF certificates OF all kinds will be
thus absolutely protected so long as any
remain outstanding.
This committee. therefore, indorses
and recommends this plan as. under ex-
'sting circumstances, the best solution OF
the financial problems resulting from the
failure of the Union Trust company.
ITNANIMITY IMPERATIVE.
I'm order that the proposed plan may
be put into operation II is absolutely
necessary that tho creditorsi shall with
PRACTICAL unanimity, accept and ratify n.
I'm a matter where such tremendous
results are involved. touching the indus
trial and business welfare of this city
ana state. your committee ventures TO
express the hope that no creditor will
permit himself TO attempt TO gain any
selfish advantage by standing out for bet
ter terms than are offered by the plan Ia
course almost certain TO result dlsas-
trously not only TO others but to hint
self but that all parties will zealouslv
labor for the success OF the plan whereby
only and surely its success Is certain.
''The principal criticism which has been
made upon the proposed plan is that the
present stockholders are allowed TO re-
ceive anything for their stock and that
the deferred certificates which are to be
given In exchange for their stock 80
certificates therefor being cancelled)
would in case of further liquidation be
preferred over new stock But no creditor
need take any new stock unless he so de
sires
"Au certificates given to creditors in
ifcu % their deposits or other claims
must be paid In full with interest before
any payment can be made on tho defer.
red certificates
Liquidation can be brought about only
by actual insolvency so long as any GER
tfcates remain unpaid, and il the COM
pany should become insolvent before its
said obligations have been met IL is not
probable that there would be sufficient
assets TO pay anything upon the deferred
certificates.
The deferred certificates are not a
liability of the company upon which
any proceedings for the appointment
OF receiver could be based
DEFERRED CERTIFICATES
"Unless the company goes into liquida.
don, no payments either a. interest or
upcn the principal OF the deferred certf-
Gates can be made which will impair
either the capital or surplus OF the COM
pany
1T should be noted also that a large
part of the present stock OF the trust
company is held I'm pledge by parties
without the state. and that the pledges
now holding said stock cannot be m de
TO surrender their stock without some
equivalent.
Every form Of pressure has been nut
upon the stockholders to induce them TO
surrender their stock for the least possible
equivalent, and no better terms can be
secured than those proposed in the plan.
IF these should be rejected the plan
must fail, with the resulting consequences
of incalculable financial disaster to the
business interests of the city and state
Creditors are requested to note that
they do not by accepting the plan agree
TO take any of the new stock to be issued.
ANY creditor can exchange If he
chooses the whole amount of his deposit
for the cash payment and the certificates
provided for in the plan.
But he will have the privilege ana
right to buy the new stock and pax for
II out OF his deposit on the terms men
toned.
1T is very desirable that as many de-
posit2rs as possible should subscribe for
stock. and the subscriber for small
"hiouHN VIII nave tue same advantages n q
subscribers for larger rmounts
TWO DEPOSITARIES.
The Rhode Island Hospital Trust com.
pany and the Industrial Trust company
have consented and agreed to act as de-
positaries under the agreement and will
receive, give receipt and be responsible
Tor all papers deposited by stockholders
and creditors in accordance with the
plan.
n stockholders and creditors are re-
spectfully requested to examine carefully
the enclosed instruments and to sign and
return those requiring their signature as
promptly as possible i'm the enclosed en-
veiope.
stockholders will forward their certih-
Gates OF stock and sign and return these
Instruments: l. transfer Of stock I'm
blank 2 The power OF attorney to the
voting trustees.
creditors viii sign the enclosed release
OF claim and return the same In the en-
closed envelope, together with all evil
dences of Indebtedness held by them re-