New-York tribune., 1914-03-31
Judge Hough to Allow Re
organization-Help
for DepOsitors.
GJMBEl AND CLAFLlN
ACTS WIN PRAISE
Simpson Crawford Store VIII
Continue - Vogel Illness
Halts Examination.

Judge Charles ". Hough, IN the feu-
oI Court Yesterday approved OF the
=. 60 reorcanize the Simpson Craw-
erd Comnanv and the Merchants IN
press Company and continue them uhuer
,boir nrcsent names. He also approved
,ne settlement Of the claims Of the de-
rositors in the banking house OF Henry
siocel and Frank Z. Nogel against the
.h-oa stores controlled by them for s5Zo,-
ooo and I'm adjournng court deciareu
t..t cin,bel Brothers and John Claiiln
foad norformed "a distinct public ser
i,,ce" Inv the part they had played In the
proceedings
a. tbe terms of the Simpson CRAWFORD
ir.orrani-ation some Of the creditors re
cetve so per cent in stock in the new
,connanv i'm settlement Of their claims
sor,e have elected 10 receive 10 per cent
IN cash and 50 per cen. IN securities ana
those who have agreed TO neither p'opC-
sition may receive l6i2 per cent cas-"
if they so elect.
This latter option was not mace pun
uc until yesterday. when Joseph NJ
fairfield announced 81 in court IL j
expected that the reorganization pian
will become effective without any SER
Gus delay.
Serious friction. however, threatens
over the payment Of the claims or the
depositors in the bank. 1t had been as
s,,r,ed that the money now in hand ana
~ he neid 70 Henry Melville. receiver OF
tho hank. would he distributed by MIN
pv Judge Hough's order. as II was inter-
nreted bv the lawyers yesterday, THESE
claims will be paid through trustee III
banl,rlptcv. whom the depositors VIII
e,act so that II will he several weeks
before any payment can be made
Want Checks ST Once.
This is objected 10 by the deposltors
represented by John p Murray OF Cou-
jcit Brothers. and Ralph Wolf. or hays,
IH-scbfeld & Wolf who wish TO avold
DELAY and expense by having Mr.. Mel
ne send out checks for at least part OF
the dividend at once.
Mr.. Wolf told Tribune reporter yes
,erdav afternoon that he would call upon
rossph y. Proshauer. counsel for Mr..
Melville for the immediate payment o.
the moneys in hand and TO be paid ny
,h. three stores. and il is probable that
,he court will be asked 10 modify its or
gpr on the EIOuHu VI 'NPN-i~N e''
matter Of equity TO 1000 small depos-
itors who 10 all intents and purposes
Will get nothing II the money Is 10 DE
raid out by the trustee, because OF 'he
cost Of proving claims
As matters stand, with the SS2o'VoV
10 be paid for the claims against the
stores. 100000 TO come from the BOND
If the bank and cash in hand. about
sis4ooO in cash will soon be IN the Gus
,od,. Of Receiver Melville. The expenses
NJ tho receivership will require at least
$50 900 leaving about 100000 for the
depositors, or slightly more than IA per
cent Of their claims If they were PAID
bv Mr.. Melville. Melville also has 800
600 Of common stock In the SieSel Stores
CORPORATION on which something may
he realized later.
Candidates for Trustee.
There are many candidates among one
faction Of the depositors for the pos!tioh
OF trustee As matters now stand that
Official will handle more than 10000 and
be entitled TO fees OF about $4,000 The
position Of counsel 20 the trustee is also
desirable. Referees fees would also eat
up a considerable amount.
n. however. the lawyers for other
rroupg Of depositors succeed In having
the money paid out by Mr.. Melville the
position Of trustee will pay little and law
yers will also find lean pickings and the
referees fees will he light
Ore OF the candidates for the place is
accused by lawyers representing the creo-
;tors and other interests Of offering 70
seU out his companions in misfortune
When Judge Hough opened court yes
terdav afternoon. M Proskauer present.
nj the plan for settling the banks claims
against the stores Mr. fairfield the plan
for reorganizing the Simpson Crawford
store. and Mr.. Murray, Mr.. Wof ana
william II. Bonynge the agreement OF de-
positors 10 the settlement Of the bank
claim. James y. Rosenberg declared the
mercantile settlement agreeable TO Re-
ceivers Marble and Sheppard.
Judge Uough modified the Simpson
Crawford plan by inserting a clause TO
protect the nOn-assenting mercantile
creditors who may elect 10 receive 1914
nor cent OF their claims in cash. and
then took Up the part that che Gimbel
Erotbers and John Clahn had played.
Judge Thanks the Bidders
81 think" said he that it Is no more
than is Due TO the gentlemen who bid for
Tho property OF the Simpson-Crawford
comnanv and the gentlemen who backed
,,o mat bid. namely Gimbel Brothers and
Mr. John Clahin. 70 say they deserve the
thanks Of the community
After the courts efforts 20 make the
.nost uossible showing for the value OF the
goods contained in the store the bid OF
,c.srs Girnbel and the action Of Mt.
,rsg,u dxed or standardized the value OF
,soee goods in such a manner that made
t,i4 settlement desirable and possible
Tho persons who made that possible
have. in my judgment rendered dNtinct
public service"
"l am thoroughly pleased with the set
ncment " said Receiver Marble. II is
much better than we had hoped for
Frank ". Vogel. who vas expected 10
be examined in bankruptcy before United
States Commissioner Gllchrist yesterday,
arrived from Chicago before noon and
was taken 10 the Hotel Majestic BY
physician and nurse. Because OF his
condition All adjournment OF his exami-