The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-06-25
500 CREDITORS
VOTE TO REFUSE
GREENHUT OFFER
Those in Minority Send Pos.
: Card, DcnOuncing the Re-
organization Plan.
HOLD IT INADEQUATE
AND THREATEN SUITS
Claims Of S2.408. 600 Repre-
s~ented-MOnmOuth Securi-
ties Co. Attacked.

Opposition 20 the Greenhut r~eorgan!-
aation plan developed strength ,ester-
DAY in the form OF some Ave hundred
creditors replies to the pamphlet report
circularized by the Independent credit
tors comm!ttee-the minority group.
Accompanying many OF the pos; card
votes on the plan. which was submitted
b. the creditors protective committee
the majority group-and the bond
holders committee. were letters de-
n~ouncing it as inadequate and urging
the prosecution OF alleged claims for
S2.t0s, 900 against the Greenhuts.
II was considered probable yesterday
that the minority creditors will balk
the present reorganization scheme for
the Greenhut Company and compel
Capt. J. b Greenhut and the Monmouth
Securities Company. owned by MEM
bers Of the Greenhut family. 10 make
another offer or face lawsuits for all or
parts OF the 81. i0s. 900 claimed as "as-
sets not turned over to the trustees
II Referee Peter y. Olney does not APP
prove OF the plan. and Capt. Greenhut
does not increase his offer TO the credi-
tors, not only litigation of these claims
but other steps are threatened.
The FIRST clash OF counsel for the
various groups OF creditors probably
will take place in Mr.. Olney's office at
IS William street next Tuesday morn
Ing, when an application will be made
for a decree ordering a sale of the
Greenhut company's assets. The coun-
sci for the minority creditors. it is said.
will oppose the application and contend
that the trustees have no right to sell
the 81, 40S. 900 In alleged claims against
the Greenhuts. 1t will be maintained
that the trustees should prosecute these
claims for the creditors.
To Keep IN the Fight.
Whatever the outcome OF this meeting
Seldom Bacon and Saul s. Meyers. of
counsel for the minority group. say they
are prepared TO continue the exami0a-
ton of Capt. Greenhut. the other officers
Of the company and some Of the en-
ployees to establish before Mr.. Olney
the facts relating to the items which
make up the s2,4OS.0 200 total. Counsel
'or the opposition creditors. who feel
hat Capt. Greenhut ought to make a
more substantial offer than 12ia cents
IN cash. expect that II will take about
zen more hearings before their case WIN
he complete. Unless Mr.. Olney decides
on more than one hearing a week the
matter may drag along for several
months.
we feel" said Mr.. Myers. that those
are valid claims, and unless Capt. Green.
hut sits down n writes out a check
'r n million or two 10 the trustees
r makes z better offer than he has
made IN this reorganization plan we
shall fight these claims right through TO
The United States District Court. / am
confident that the reorganization plan
Will not 20 through as II stands now.
Greenhut must make a larger oner. We
snail have enough opposition to defeat
the plan on Tuesday,
Mr.. Olney has power from the District
court TO accept or reject the proposed
reorganization plan. ounse for the
majority creditors, Richard +. Dwight,
that enough OF the creditors will
vote for the plan TO insure it's adoption.
Al any rate. II Mr.. Olney does approve
OF the plan. which is considered i'm
probable. al least for several weeks to
come, the creditors opposed 10 1t as In
adequate will 20 before the District
Court Judge who receives Mr.. Olney's
'Np''N anu nsHt IL tncTc.
Quicker md better Results.
"Our position is this said Mr.. Dwight
Yesterday In defence OF the reorganiza-
lion plan. I'VE have carefully consid-
cred these claims tthe s2,i0s.000). We
have gone into each one thoroughly.
Many OF them are valid causes of action
asainst certain OF the officers and direc-
of the J. b. Greenhut Company and
other parties. But we believe that the
reorganization plan will be better and
financially for the creditors than
me results OF such litigation. Many OF
he claims are not easy OF proof. but It
% a matter which is entirely up to the
creditors themselves to decide. II they
the satisfaction of suing Greenhut
'hey can have IL, but the financial results
VIII he quicker and probably better the
other way
The way in which some of the trans
actions involving the items in the
'!40s,000 claims were handled was
out yesterday by lawyers inter-
ested in the case. II is admitted that
Two Items in this sum-payments Of
100000 10 the Monmouth Securities
company from October 2S to December
v l9li, and $3.50. 900 In payments to
BANKS on notes Endorsed by J. Il. Green
the strongest basis OF action
against the Greenhuts for recovery OF
assets.
IN his testimony last Tuesday Capt.
sreenhut failed to find any AUTHORIZE
m the minutes OF the board OF d.
,ectors for the 100000 payments to the
monmouth Securities Company-his own
'a'nlIy-a few months before the RS
'eVerShip, and for the payments to tie
,ahks on notes bearing his persona. in
The minority creditors
that the circumstances sur
'oundlng these two payments in par
GUAR stamp them as preferential. But
Paskus, counsel for Cant.
'reenhut, who said his client IL ready
ma willing to go on being examined,
'''ert'd Yesterday that 1t was not Lee
,ssdrv for capt. Greenhut to get au-
hoTzation for these payments.
n,t5O,O0O Notes In Banks.
Tne~other transaction was made in
h' way: ON October /, 1914. the j. Il.
e"nnut Company owed 100000 taslde
''" 81 100, 900 notes to the Monmouth
Company Oh bills payable.
the personal Endorsement OF j