New-York tribune., 1909-06-05
MILLIKEN BROS. PLAN
vsToRITY OF CREDITORS
GIVE ASSENT.
Reorganization Committee to Asl'
for Discharge of ReceiCerS-
Trustees Suggested.

-r,s reorganization committee Of creditors OF
.,.,,,s, Brothers has formulated a temporary
-, :, was learned yesterday, for the rehabili-
....c, oy the company which has been agreed
FIVE sevenths Of the creditors, including
n .,a larger creditors. and so Per. cent of the
s+ockholders
Az soon as the outstanding creditors and
...tbol6ers. or as many of them as in the
-;,ion Of the reorganization committee Is
,.,-,sd necessary have approved the plan ap
-H.s,;on viii be made to Judge Holt in the
--,,Ad states District Court 10 take the COM
,,,r ON Of the hands Of the receivers and place
!. ir the hands of voting trustees. to be selected
~ she creditors It is expected that the appli-
,.+ion to the court will be made next week
The rlsn rrovides that tha fabricating plant
~ the company. which always a paying
concern. IS TO be put into immediate operation.
bua the steel mill. the cost Of constructing
which was one OF the primary causes OF the
failure Of the concern. viii be allowed to remain
i'll. for the present It is hoped from the profits
received through operating the fahricating plant
70 nay of the indebtedness of the company, as
well as 10 pay its fixed charges
The unsecured claims against the company
amount TO sS.714O65. and the secured claims 10
amounting to sL35o0O0. Then there are me
ossnics' liens for slS4.406 and other misceIane-
Gus claims. bringing the total liabilities up TO
Ge34ss2.
To carry out the plan and pay off some of the
-,o-e nressnE claims viii require. il is said,
about 100000 more than has been accumu-
lated by the receivers during their operation Of
-be concerns The reorganization committee
found that TO put the entire plant in operation
would require about S2.O00.oO0 and for this rea-
son it vas decided not TO operate the steel mill.
The two plants are separate and distinct, and
can easily be operated Independently, it is said.
POSSIBLE VOTING TRUSTEES.
The names of the voting trustees selected by
The creditors to run the company until it has
paid of its indebtedness have not been made
public. but it is stated that only men of the
highest standing in the financial and industrial
world have been chosen.
Among those who have been mentioned as
likely 70 be selected trustees are Gates w. Nc
C;errah. president OF the Mechanics National
Bank: William H. Wallace. of the firm Of Will
IAN L Wallace & Co. a large creditor; Gilbert
6. Thorne vice president Of the National Park
Bank Of New York, and a. A Fowler. resident
rsrtner Of Rogers. Brown & Co, the big iron
firm Of Cincinnati and New York
All Of these men are members Of the reorgan-
izatiou committee. Mr. cJcGarrah being the
chairman. and know just what It is necessary
to.do to put the concern on its feet once more
THo meetings Of tie reorganization committee
we're held yesterday. z; which it is understood
the final details Of the plan were discussed and
more creditors and stockholders signed An
other meeting wiI De held on Monday. at which
is believed the plan VIII be formally declared
in operation Public announcement Of the plan,
il was said yesterday, will he made through the
law firm Of Joline. Larkin & Rathbone Of No
6s Wall street, who represent the banking cred
itors
AnuInbsr Of the large unsecured creditors are
represented by the law firm Of Oakes, Van
AnlFinge & Schurz Of No. ~ Wall street who
have been active in obtaining the assent Of the
creditors TO the Reorganization plan. one Of the
members Of this firm said yesterday that the
outlook for the company. once the plan was put
into operation would be bright as large
amount Of new business had been promised and
assurances had been received that extensive
credit would be granted until the plant was on
paving basis once more.
FAILED TWO YEARS AGO.
MiIIikcn Brothers failed on June 10. 1907. The
primary cause Of the failure was lack of work
ing capital. brought about by the tightness Of
The. money market at that period. and the fact
that the cost Of the steel plant had been about
s2@Oao0o more than had been estimated, To
provide funds for this plant the company early
in 1886 doated IN issue Of 100000 per cent
bonds, which are first mortgage on the prop
er1y of the concern at Mariners Harbor. Staten
Island, where are both the steel mill and the
tanricating plant
lastea1 Of $4,000, 900. however. the cost Of the
stssl MIL was close 10 s5.OO0.OO0. and diversion
of cash from other sources to meet the added
cost Ct tic plant resulted in q shortage Of
"oFklng capital which the tghtness of the
1noey market made It impossible TO remedy. and
t@e fr-a was unable 20 continue business
/ was said yesterday in this connection that
tle company had put out larger bond issue
Il tac time il ioated the s3,0oo,o00 bonds IT
would have got through the panic without any
oAhcll'y, as it simply want OF cash and not
'sck Of orders that caused the failure. it having
more business than IL could handle properly at
The tir,e
Van vechten olcott. william [. Ward and
august Heckscher were appointed receivers for
me concern b, Judge Holt in the United states
District Court. on June II 1907. and they have
Oaee continued 10 operate the company at a
lfolt They continued to take new business
onui April II last when, acting under the orders
:" the court, they discontinued making new
oauactss although they were permitted to carry
OUT those already on hand
4aterest on the bonds has been paid through
oct The rcceivership, and in addition to paying
.nese fixed charges the receivers have accuru-
-ateo fund in bank Of more than 100000, be
.ioes maintaining the goodwill and prestige of
NE COMPANY
TRIALS OF WIRELESS TELEPHONE.