Norwich bulletin., 1912-08-17
M'CRUM- HOWELL
 PLAN DEFERRED
Impossible to Get Reorganization Committee Together-No Intention of Prosecuting Officers.

Impossible to Get Reorganization
 Committee Together-No Intention
 of Prosecuting Officers.
 Creditors of the failed McCrum- Howell company were to have had a meeting in this city yesterday to- con sider a plan of reorganization, but it was found impossible to get the com mittee together at this time, says the New York Times. It was said that there was no intention on the part of the creditors, at least, to institute criminal proceedings against the off, cers of the company.
 Before it's spectacular collapse last year, soon after it's shares had been ruled off the Chicago stock exchange, the McCrum- Howell company was known as the largest manufacturer of vacuum cleaners. The company also manufactured the Richmond line of radiators, boilers. and enamel ware, but in recent years 1t had devoted most of it's resources to developing the vacuum cleaner business. It had outstanding $3,500,000 of per cent. preferred stock, which was sold with a bonus of common stock, and a like amount of common. The company paid dividends on both issues up to the time of the receivership.
 It is understood that the bankers who are working out plan of re- organization agree that the business can be carried on prof1tably after an adjustment of it's indebtedness and the supplying of new working capital Statement from Creditors Committee The statement was made in behalf of the creditors committee:
 The creditors committee, since it's appointment last April has been in constant touch with the receivers and has received the reports of the ac- countants and also the reports of engi- -neers retained by the receivers. The condition of the company was found to be distressing, but the reports of the engineers and others disclosed that the business has an earning ca pacity The committee has carefully considered the matter from every point of view and has unanimously de- clded upon a plan of organization that has been agreed to by the committee representing the stockholders. The committee recognized the necessity of new working capital in order that the new company be enabled to carry on it's business. The proposed plan pro yides for such new capital, and is as follows: A new corporation will be formed with an authorized capital of s1,600,000 preferred and S3,o00,000 common stock; $S75,00 of the pre- ferred stock will be sold for cash to provide working capital.
 Debt of $2,0o0,0oO.
 The creditors will receive 25 per cent. of the amount of their claims in preferred stock and 75 per cent. of the claims in common stock. The total amount of the debt of the company is about $2.000,000. Creditors and stock holders will be offered the first oppor- tunity to purchase the new preferred stock in proportion to the amounts of their claims and present holdings of stock. The new preferred stock to be sold will carry with it a bonus of common stock of the new company. Holders of notes of the McCrum- How ell company, in addition to the above securities, will be entitled to hold and enforce their claim against the indi- vidual indorsers upon the notes The creditors committee has arranged with new interests to purchase the preferred stock not subscribed for by creditors and stockholders The committee is endeavoring to make arrangements by which an offer of a definite sum in cash will be made to creditors who do not desire to accept the new securi- ties. While the committee has de- termined upon the foregoing plan, the details have not yet been completsd but 1t is hoped that the final plan may be submitted to the creditors within a short time
 Report of Receivers.
 The preliminary report of the re- ceivers, Edward R. Stettinius and Will liam H. Woodin, which was filed last April, showed actual liabilities exclus- i've of the E.000,000 of stock, $54,00 of contingent liabilities. and the dis puted claims of S2,577.O29, or only S86,0OO less than the total assets, ex- elusive of patents and good will. This report, which was made by Gum, Richards & Co.,, was in such contrast to the previous statements of the com pany's condition as made by account ants paid by the McCrum- Howell Co, as to lead to the conviction that the company's books had been juggled.
 MT. Stettinius gave out the follow ing statement yesterday:
 Tn addition to their examination of the books and accounts, the receivers in the interest of both creditors and stockholders, have been engaged in examining and considering the ques- NiSi4 VI tl1e lllIlS pOWCI OI luG cor poratiOn so as to ascertain whether there was a substantial basis for re- organization; they have communicated the results of their investigation to the committees of stockholders and creditors, and as a result a plan of re- organization is being considered and will no doubt be laid before every creditor and stockholder at an early date. The receivers expect to make further reports to the court, but due respect to the court requires that nei- ther such @ report nor its substance should be published by them in ad- vance of It's filing. The receivers have not been advised that any criminal action has been commenced, but such action would, of course, not be within their province. their duty being sim ply to conduct the business and pre- serve the assets under the direction of the court"
 It was learned that both the receiv- CTS and the creditors" committee are sanguine that ths reorganized com pany, under entirely new manage meHt, will prosper. It will have no indebtedness and no fixed charges.