The San Francisco call., 1913-07-26

the London people and transact the
business Immediately: in fact. the time
set was d little over a week.
REJECT LONDON OFFER
Notwithstanding the absurdity of
this suggestion, the then trustees. un-
der the influence, and at the persua
sion of, Mr. Smith, refused to conclude
with the London people. and caused
them to withdraw from the heid.
The written proposition of the Lon
don people involved the payment OF the
Halsey loan, the payment OF the toe
lands loan and the rapid supplying OF
tating of the properties to bring the
sum advanced to more than s12,o00,000.
Rollins & Sons then abandoned the
whole project and the bankruptcy OF
f. Nj Smith became inevitable.
The statement charges that Tevis
and Hanford advanced the Properties
company more than s1,000s00O. Con-
cerning the Halsey loan the state
ment says.
IN ". Halsey & Co. made a prop
would renew their loan or refund the
same, provided that they were given,
as a bonus, of new company to be
formed which was to become the owner
of the Traction companies, enough
stock. which added to the holdings of
Smith and the Smith trustees, would
these companies, and thus reduce the
United Properties company, on It's
principal security. to minority holder,
thus depriving the United Properties
company of one Of its principal assets.
This astonishing proposition met
with the approval of the Smith trus-
tees. but was fortunately thwarted
by the firmness OF the trtlSteS for the
United Properties company.
Il proposed to the United Properties
trustees that if they would give me an
option on Mr.. Smiths holdings in the
trust or on all the holdings, | would
proceed to London and attempt
financial rehabilitation of the COM
panies.
tion at a price. based on Mr.. Smiths
contributions to the company, OF dou-
BILE the present market price.
tnsf TsyiI the sp9 m2sef had
such large interests at stake, and so
many of our friends had their for
tunes involved, that it was not time
to haggle over prices.
ACCEPTS PROPOSITION
The trustees then changed the sug-
gestion and imposed another condition
that l should agree, if l found pur-
chaser to take care Of all of Mr..
been hypothecated in the banks. and
are in the hands of the Smith trustees,
at price twice the present market
value
days to see if | could possibly meet
the condition by any sacrifice that Mr..
Tevis and myself might make of our
holdings, / accepted this burdensome
proposal.
by insisting that besides taking care
of all of Mr., Smiths holdings in the
banks, and his personal holdings. I
should enter into contract. on behalf
of myself and any buyer l might pro-
duce, that we should assume the bur
dens to the United Properties company
of Mr.. Smiths unfulflled contract for
the delivery of stock.
Il finally accepted this frightful bur-
den.
effort to prevent anything whatever
being done for the benefit of anybody,
insisted that portion of~the prop
erty, held by the trustees, belonged to
the Realty Syndicate and that the
trustees had no right to give me an
option on this property.
ITO avoid delay | proposed to the
trustees that if | found a purchaser
and any part of this property was found
to belong to the Realty Syndicate, or
any other person. I would accept what
was left after the claims should be
proved, allowing a proportional reduc-
tion from the price for the property
they were unable to deliver.
"On this suggestion the trustees have
never acted.
MUM on HANFORD MOVE
THE Smith trustees proposed to the
property trustees that if I were given
any option whatever 1t should not ex-
ceed 80 days. Every sane man knows
that / could not go to London and
transact business within that time This
was merely an effort to block the situa-
tion.
The Smith trustees held late meet
ing in the Kohl building yesterday. At
it's conclusion John s. Drum, spokesman
for the committee. said:
I'VE are preparing a statement for
the creditors and the public, which will
be ready probably by the first of the
week. We do not care to make any
comment on the situation before then.
I'VE are actually acting for the cred
itors in effort to save the Smith
properties. and the action of Tevis and
TO have Smith declared a bank
rupt does not affect us or our work"
There was report that the bankers
interested in Strengthening out the
Smith affairs would apply to the United
States court for the appointment of
Frank B. Anderson. Mr.. Drum. Mortimer
Fleishhacker W. w. Garthwaite and c.
O. G. Miller as receivers for the Smith
properties. These are the bankers act
ing as the Smith trustees. There were
other rumors, and Mr.. Drum asked to
be excused from commenting upon any
of them.