New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-08-04
TALK OF GOING TO COURT
BondhoIders' Committee of Third
Avenue Railroad Aroused.
NO COMPROMISE WITH P.S. C.
Difference Between Securities
Desired and Limit Sug-
gested Too Great.

| There appeared to be a feeling among
| the members of the bondholders committee
of the Third Avenue Railroad Company yes
teriay that the rejection of the committee 8
plan of reorganization of the company by
! the Public Service Commission. the
| ground of decentralization would result
| in a review of the matter in the courts.
Either that or the committee would go
ahead and reorganize with an issue OF
bonds to the approximately $780,
/ 600 Ooo-which William R. Wilcox, chair
man of the commission, and Commissioners
| Maltbie suggest in their decision would be
permitted and turn the company over 10
the bondhoIders This would mean, it was
| said. that the outstanding capital stock Of
! sl6O00.000 would be wiped out
James n. Wallace, president of the Cen
trail Trust Company and chairman of the
bondholders' committee, said that meet
ing of the bondholders' committee had been
called for Friday at 80 a. m. at the Of
flee of the Central Trust Company, and 1t
would probably be decided at that time
what action the committee would take in
the matter
Herbert ]. Bickford, Of No. 50 Wall street,
| counsel for Frederick W Whitridge. re-
cefver of the Third Avenue Railroad Com
pany said yesterday that he had not yet
read the decision. Mr. Whitridge is in Ed
rope William D. Guthrie. who was counsel
for the applicants, IS also abroad.
| One member of the bondholders' commit
| tee expressed the opinion with much en-
phasis yesterday that the only plausible
thing to be done in the face of the COM
missions decision was TO resort TO the
courts in an effort TO sustain the proposed
! plan of reorganizati ton.
| 1T appears he said. that the decision
| does not take into consideration that the
capital stock was wiped out when the prop
| ertv was sold under foreclosure and bought
/ IN by the bondholders- The stockholders
now stand in a similar position to the hold
| ers of a second mortgage. When the frst
( mortgage is forecloSed the holders OF q sec
ond mortgage DO not usually get much out
of it
REPRESENTATIVES, of counsel who were in
strImental in drawing the latest plan of
reorganiza ton pointed out that the dlHer-
ence between the S54,000.OG of securities
which the bond holders committee desired
| TO issue under the new plan of reorganlza-
tion and S350lnno0 the limit suggested
IN the commissions decision, was entirely
too large TO admit OF a satisfactory com
promise
One of the bankers interested in the
bondholders' reorganization plan said yes
teroay that the committee would either
contest the Public Service Commission de-
.sion in the courts or would submit a new
plan that would wipe out the $l60"'0o or
stock. Just which action would be taken
he said would probably not be decided
until the return of William D. Guthrie
senior counsel for the bondhoiders COM
D7ittee. who is in Europe.
The banker complained that the BOND
holders committee had not been able TO
pet 2 COPY OF the Public Service Commits
sion's opinion on the reorganization plan
When they asked for a copy. he said, they
were told that there was none ready for
distribution. The copies given TO the news
,aners they were told were galley proofs
The committee. the banker said. asked why
thev had not been furnished with galley
proof'' also but received no satisfaction.