The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-06-23
NEW FIGHT OVER
GREENHUT PLAN
Continued from First Page.

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bondhulders Is to he transferred to a
newly formed realty corporation for the
beneii; OF the bondholdcrs. Tue services
of i. - Greenhut are to be at the dis
posal OF the new company without ex.
pcnse. The present stockholders Of the
j. Il Gree nhut Company are to get 500
shares of common stock. Moreover J
u. Greenhut Is to form an underwrit-
Ing syndicate to- subscribe for frs; pre-.
ferred stock in the new company at pa
90 an amount necessary to pay the l2L
per cent. cash - the creditors who ac,
cept par cash. This will amount e
s@jo.0o0 to $500. 600.
In urging the proposed plan upon tn,
creditors of the Groerhut company. IN,
creditors protective committee issued
Yesterday. with the circular outlininl
the plan. IA statement of the present in
debtedncss Of the J.. 49,. Greenhut Com
pany MS of June II. This Statement
shows Liabilities of $3.50. $3.50. agains'
assets OF u hook value OF s5.0S2,5Ti.9.
and OF an estimated liquidation value ol
80. Oi0.31T.5i. This statement assume!
that the new company can do a busl'
ness of approximately $4,000, 900 an
hat all of the business Of the new com
pany can he conducted in the Siegel
Cooper store.
Considers Possible Litigation.
The majority committee also consid
cred possible litigation. such as Is con
templated by the minority committee, fu'
the statement to the creditors says
''In the opinion of the committee. ever
" the litigation could be sucCessfullN
prosecuted tas the minority think o.
ran) In those cases where counsel FOL
tho anV,pnffsaa haligNag th.Ya iE AnN
basis therefor. it would not. after TAX
lng into consideration the delays anC
expenses necessarily attendant thereon
produce In liquidation in bankruptcy "A.
large a percentag. for the creditors as
they should receive pom the plan 81
reorganization recommended. Litigation
would, on the other hand. eliminate any
possibility Of reorganization
1t IL estimated that In liquidation
proceedings the or, ditors would receive
approximately IS per cent. of Their
claims. Therefore. the creditors who do
not accept either proposal in the sub
mitted plan OF reorganization will re
ceIve that amount approNirnat' ~ "
the bankruptcy proceeding.
IN outline OF tho plan was submitte,
verbally to Mr. Olney yesterday after
noon. when Nj. Bacon asserted tina
his committee would not pass on am
pan uilll the nutSlsIUS ipNNt 'liNE W.
legged $500. 900 valid claims aGalus
the Greenhut interest are settled. NJ
Bacon told Mr.. Olney that Benjamli
Paskus. ounsel for capt. G%reenhut, ha'
said that the plan would be jamme'
down his throat II he did not accept o
the creditors he represented did not a.
cep; IL.
Calls statement n Lie"
That statement Is a lie" retorted NJ
Paskus. rising. u am shocked at tn
statement Of counsel
at IL a statement OF fact" insistet
MIR. Bacon. and YOU will be NOR
shocked when W. get through"
Mr.. Olney then allowed Mr.. Bacol
to proceed with an examination OF Capt
| Greenhut along tn. lines suggested
Capt. Greenhut had 10 be restraIne
several times by Mr.. Olney when he re
fused TO identify some OF the com
panv's books and to answer some ques
tons. Mr.. Bacon pointed out hat o
s1.l0O. 600 owing to the Monmouth Sc
curitles Company from the i. Il Green
hut Company In August last year onI
$500. 900 remained due in January he
fore the receivership.
REGARDING the ST. 600. 600 bond issu
OF December, 1910, Mr. Bacon introduce
Ir evidence. a circular letter sent gu
20 prospective SliS'.lprNs OF JdNAdt
So. l?il. in which the net quick assets
% the company wer. stated Al 'ove
s.. 00O. 600. OF which over 81 1000. 600 COT
sisted OF cash Capt G%rcenhut ad
mittsd that the net quick assets' too
in everything except real estate and TIA
the figures in the circular were furn!she
by his bookkeeping department.
Owing to the fact that capt Greer
hat complained OF a headache and aske
to be excused Mr. Bacon did not go int
this matter az fully as he intended. ~
the hearing was adjourned. hut IN
minority committees pamphlet deal
with the transaction. 1t says that III
quick assets amounted 20 sttS0. 2lS. tina
there We're AT the time quick current l.d
bilitIes OF $1,000. 900 and Sl.6SS.557 q
accounts payable. which reduced the ~
quick assets to $4,000. 900. Agalns; IN
there was a cash dividend Z 5000. 90
drawn. leaving only $4,000 o CA IN.
basis the report charactorizes the 81
400, 600 bond and stock issue as ovci
valuations.
Referee Oluey adjourned Capt Greer
huts examination until next Tuesda
afternoon at > O'Clock. There viii be
creditors meeting ON Tuesday murnin
At ~ O'Clock In Mr.. olney's office Z
IS william street to consider draw. y
up a decree of sale of the irrcuh1
assets preliminary 10 the r~eorganiZat.u
plan IL Il Is TO be carried out. II uu
the trustees fee, that 1t any rate. Wit
the summer dun season at hand. u
assets ought to be sold. IL is qI.t
likely. however. that the new compau
proposed in the reorganization plan wi
bid in the asses AZ the sale.