The Birmingham age-herald., 1913-04-02


An order for the drafting of a decree
approving the offer of the Baltimore re-
organization committee to buy the bank
rupt Alabama Consolidated Coal and
Iron company, with certain modifica-
tions, was Informally issued from the
bench late yesterday afternoon by United
States Judge William l. Grubb.
Joshua Levering, well known financier,
industrial man and once candidate for
President of the United States was
among the witnesses placed on the stand
during the afternoon. Mr. Levering in his
testimony told of the efforts of the re-
organization committee, of which he is
chairman to make the plan of reorgani-
zation fair and square to all stockholders.
both common and preferred, and why he
thought the offer which had been made
to Trustee Harry Coffin some time ago
and which had been approved by Mr. Cof-
fin, should be accepted by the court.
Other witnesses were Mr.. Coffin, C. P.
Ludwig, manager of the Gadsden plants
of the company, and Secretary C. I.
Earnest of the reorganization committee.
~ AlIoN lHifty Ddys
The modification in the reorganization
plans resulting from the conference of
Mr.. Levering, Mr.. Coffin and others Mon
day is that 30 days will be allowed after
the decree is issued by the court for pre-
ferred stockholders which have not come
into the reorganization plans, to do so If
they desire. 1t was also provided as a
further modification that claim made by
the firm of Dresser & Williams of Balti-
new company provided the surplus left
from the reorganization plans did not
prove sufficient to pay it.
In reviewing the case after the evidence
had been taken, Judge Grubb stated that
there We're still some features about the
Han which he did not think were ex-
actly just and proper, but which were
Lot of enough importance to warrant him
refusing the whole proposition on their
account He stated the plan could be inn
proved upon, but as it was evident that
any further changes would kill them al
together he did not believe he should re-
fuse them as they stood. The court ap-
peared to believe that all claims, both
provable and unprovable, should be taken
care of to a certain extent and that some
better provisions should have been made
for the protection of certain common
stockholders, but repeated that these fea-
lures did not appear to be of sufficient
Importance to warrant his refusal of the
plans.
AS matter of fact, the exact provisions
of the decree are not yet known although
Ii is probable they will be such as out
lined. On account of the pressure of
other court business the court requested
that Referee in Bankruptcy Edmund II.
Dryer should draw up the decree and
Judge Dryer did some work on it last
night Attorneys w. C. Chestnut and E.
N Rich for the reorganization commit
tee, Mr.. Levering, Attorneys A. ID. and
f. G. Smith for Joseph ii. IToadley, for
mer president and chairman of the board
of directors of the company, Mr. Cof-
fin, his attorney, Lee c. Bradley, and
others will confer with Judge Dryer In
drawing up the decree. which then will
he submitted to Judge Grubb for his ap-
proval Judge Dryer has handled nearly
all the court procedure of the company
since it has been bankrupt and is thor
oughly conversant with every detail of
the proposition. 1t is probable that the
decree will be ready for Judge Grubb' S
approval this morning or at least today.
Decree Submitted
A decree has already been drawn up by
attorneys for Mr. Levering and Mr.. cof-
fin, and this was submitted to Referee
Dryer for consultation and adoption il il
met with his approval. 1t is generally
understood, however, that the decree will
be drafted in its entirety by Mr.. Dryer.
The apparent ending of the litigation
In the courts of the Alabama Consolidated
case yesterday comes after a long series
of legal skirrnishes. The efforts of the
Baltimore reorganization committee Of
which Mr.. lowering Is chairman, to reor-
ganze and take over the properties of
the bankrupt company, have been met
with rigid opposition by what is known
as the Hoadley interests, the leader of
which is former President Joseph H..
Hoadley. Mr.. Hoadley claimed there
were several bad features TO ythe reor-
ganization plan, some of which were that
certain preferred and common stockhold-
efs were not protected; that the report
of the appraisers was far beneath the
actual value of the company's property
The 80 days time for preferred stockhold-
ers to take part in the new company
after the decree is issued, is, to some ex-
tent a partial granting of the claims Of
the Hoadley interests. but as to whether
or not they will accept the terms of the
final decree or appeal to the court of APP
peals remains to be seen.
The Following Plan
The original plan of reorganiza tion. as
made by the committee in Baltimore. to
Trustee Coffin some time ago. is that the
con- mittee shall take over the property
OF the company, shall pay off every unse-
THE DAYS WORK
Does it sometimes seem that