The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-09-15
PUMP OPPOSERS -.
LOSE FIRST FIGHT
Federal Judge Refuses to Let
Minority Stockholders
Enter Into Suit.
POINTS TO THE RECEIVER

The first court fight In the campaign
OF the minority preferred stock holders
or the International Steam Pump Com
pany to prevent the reorganization OF
that corporation failed yesterday when
Judge Charles NJ. Hough OF the United
States District Court denied the applica-
ton Of the protective committee, repre-
setting the minority stockholders. for the
right to be included as defendants In the
foreclosure suits against the company.
The protective committee desired to be
made a party to the litigation, as 1t con-
tended that the purpose OF the proposed
reorganization plan was to deprive the
preferred stock holders of their rights
and put the company in the control Of
the bondholders and the present direc-
tors.
THE major part of the moving pa
pers." said Judge Hough. "is taken up
with complaints of the inequity of a
proposed plan OF reorganization. l do
not think that courts sit to redraw or
modify or make suggestions concern
ing such voluntary business arrange
ments as reorganization plans"
Refuses to Consider Charge.
Judge Hough also refused to consider
the charge made by the protective com-
mittee that the suits were brought
against the company through the collu-
49,, - tee ltra,tArg ard tha hnplhnIl-
srs. This allegation. he said, although
made positively by the petitioners. was
not supported by proof.
The Judge said that the petitioners
should have made their charges and pro-
duced their proof before the receiver APP
pointed in the Court of Chancery in New
Jersey at the request of the ~stockhold-
ers. The Jersey receiver. having been
made a party TO the suits in the Fed
eral courts here, Judge Hough pointed
out. could have taken the proper steps
10 stay the foreclosure.
1T is an unseemly and unnecessary
act" aid the Judge, ito permit a few
stockholders who applied for and OBJ
tanned a receivership In the company's
~"s $3.50 ~ sAhN,a 80 ~ NV th'hhS 'NtN
20 which the receiver is a party and
advance a defence which they have not
communicated to the receiver himself.
They should lay their complaint before
him. If. after consultation with the
receiver and possible application to the
Chancery Court of New Jersey, their
complaint Is not deemed worthy OF
being advanced through the receiver, II
10 not worthy of being advanced at all"
a. a. -.
anty Trust Company. which is the trus-
tee Of the International Steam Pump
mortgage. has agreed to give the New
Jersey receiver time TO decide upon the
course he shall take with reference to
the allegations Of the preferred stock
holders.
In the protective committee which
filed the petition for Intervention are
McDougall Hawkes., Roger +. Sturgis.
Charles X. Beekman, Charles II. Whsle
and Thomas c. Carmody.
VIII Go to supreme Court.
The committee. after Judge Hough's
decision. announced that II would carry
its fight to the United States Supreme
Court, II necessary. The committee has
applied for and received from Vice.
Chancellor Stevenson in New Jersey an
SsN,A ~ NAN W tAAC nus
why he should not oppose the fore
closure action or allow the protective
to do so. The order is re-
turnable next Monday in Paterson. In a
statement yesterday the committee
said
THE Vice-Chancellor stated tina tech
meal defences should not In his opinion
be allowed TO interfere with substantial
rights of stockholders, and that IL II
srau nAnnGoapp that nrInra ahA,II he
entered to cover such technical defences.
unless ground was shown to him on
Monday why they should not be entered,
proper orders would be made"
The Joint reorganization committee
yesterday at a meeting declared the plan
operative and fixed October II as the
date for the payment OF the assessment
Of $3.50 per share upon the asserting
common stock. The committee made
the following statement
THE assessment upon the preferred
stock cannot accurately be determined
until after that date. 1t will probably
be in the neighborhood Of $3.50 per
share, inasmuch as about 80 per cent.
of the common stock has already signi-
fled its assent to the plan.
THE plan has received liberal sup
port from all classes OF securities. While
the announcement of the definitive fig
ures must await final advices from the
depositaries in London, Amsterdam and
Zurich the following are the closely ap-
proximate percentages of the various
Issues OF securities which have expressed
their assent to the plan International
bonds. 80 per cent. International pre-
ferred stock. "a per cent. International
common stock, 80 per cent. Henry r.
Worthipgton preferred stock, 30 per
cent. ; Blake & Knowles preferred stock,
100 per cent. Holly Manufacturing
Company bonds. Sc per cent.
THE committee have determined to
permit further deposits of all classes Of
securities without penalty until the close
Of business on Thursday, September 49,"