The San Francisco call., 1913-07-26

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 field.
THE written proposition of the Lon
don people involved the payment OF the
Halsey loan, the payment of the tide
lands loan and the rapid supplying or
tating of the properties to bring the
sum advanced to more than s12, 100000.
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 100000 Con-
cerning the Halsey loan the state
ment says:
IN W. Halsey & Co made a prop
ositfon to the Smith trustees that they
would renew their loan or refund the
same. provided that they were given,
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
CONSTITUTES a majority ownership OF
these companies, and thus reduce the
United Properties company, on Its
thus depriving the United Properties
company of one of its principal assets.
This astonishing proposition met
with the approval OF the snifn srts
by the frmness of the trustees for the
United Properties company
Il proposed to the United Properues
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
They verbally promised me an .op-
ton at a price. based on Mr.. Smiths
contributions to the company, or dou-
hla the nTpSnnt market price.
felt that I91spsfn Mr.. Tevis S and myself had
many of our friends had their for
tunes involved, that 1t was not a time
to haggle over prices.
ACCEPTS PROPOSITION
The trustees then changed the sus-
gestion and imposed another condition
that I should agree, If L found a pur-
chaser, to take care of all of Mr.,
Smiths traction holdings which had
are in the hands of the Smith trustees,
at price twice the present market
value,
days to see If / could possibly nseet
the condition by any sacrifice that Mr..
Tevis and myself might make of our
holdings, 1 accepted this burdensome
''rhe trustees then again amended
by insisting that. besides taking care
Of all of Mr. Smiths holdings in the
should enter into a contract on behalf
of myself and any buyer I 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.
II finally accepted this frightfsll bur
Then, Mr.. Smiths attorney, in an
effort to prevent anything whatever
being done for the benefit Of anybody,
insisted that portion OF the prop
nrfx hnl hr-+ +ba frr1 CT hn1 ro1 -
the Realty Syndicate and that the
trustees had no right to give me an
option on this. property.
trustees that If I found a purchaser.
and any part of this property was found
to belong to the Realty Syndicate or
was left after the claims should be
proved allowing a proportional reduc-
ton 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 tho
property trustees that II ] were given
any option whatever 1t should not ex-
ceed 80 days. Every sane man knows
that I could not go to London and
transact business within that time. This
was merely an effort to block the situa-
ton"
The Smith trustees held a late meet
ing in the Kohl building yesterday. At
its conclusion John s. Drum, spokesman
for the committee. said:
We 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.
We are actually acting for the cred
itors in effort to save the Smith
properties, and the action of Tevfs and
Hanford to have Smith declared bank
rupt does not affect us or our work"
There was a 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.