Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-06-09

Committee Named and De-
: positors of Utilities 6 Per
Cents, Defaufted, Asked.
CONVENTION NEWS GIVEN
By I. A. FLEMING.

-. BY I. A. FLEMING.
The notehoiders' protective agree
s1lent in the matter of the 1881. 900
Washington Utilities Company's de-
3auited notes secured by 27,500 shares
OF the common stock Of the Washing
Son Railway and Electric Company
vas placed in the hands of holders of
tho notes in this city this morning.
% The protective committee named
consists of Clarence F. Norment OF
The National Bank Of Washington and
Railway and Electric Company:
Theodore H. Banks. Henry d. Harlan
and Harold B. Thorns.
The accompanying letter Of notiflca-
Mon Is dated New York. June !. and
xhe agreement itself as Of June 5.
2 The committee urges the deposit Of
4otes with the American Security
and Trust Company of this city or the
Metropolitan Trust Company OF New
York at once. with request that in
any event deposit be made not later
Than the 23d instant"
:. OF the committee as constituted
Henry D. Harlan Is of Baltimore and
Harold B. Thorne of New York city.
A Positive Paragraph.
=. The fifth article in the agreement
heads as follows:
ITO the end that the committee may
Be able to protect and promote the in
ferests of the depositors under all cir
eumstances. the committee is hereby
Vested with the legal title to and
ownership of all the notes deposited
Hereunder. and the depositors hereby
yeverally assign. transfer and set over
Into the committee the notes of the
depositors deposited by them. and no
Amitation of any kind is imposed on
the powers of the committee. as the
legal owner, it being understood that
the committee may use, exchange. dis
Zeal with. the notes deposited here
nnder, and generally do any act or
thing in connection Herewith as in its
Hole and uncontrolled discretion may
Heem necessary or advisable for the
protection or enhancement of the
ors."
Further Authority Granted.
The sixth article says:
The committee is fully authorized
and empowered to take such action.
to give such direction, to take such
Proceedings. to bring such suits. to
efty pledged the 1880 shares of
W. R. & E. stock) under the trust
indenture under which said notes
were issued and to do such acts as
the committee shall from time to
time consider desirable for the pro-
and interests of said depositors, and
in addition. the members of the COM
ndttee as a committee are hereby
irrevocably appointed agents and at
power of substitution and revocation.
ia act for each and every one of the
depositors in all matters wherein
aetion by the depositors or any one
Of them Is required or desirable to
be taken. to obtain action on the
part Of the trustees (the Fidelity
Trust Company Of Baltimore) under
said trust indenture and in any other
matters wherein the depositors could
themselves act q noteholders"
reAign and vacancies filled by remain
ing members.
The term Committee" shall bind the |
successors in office; the "depositors"
shan bind their and each Of their |
heirs. administrators, successors and |
aasigns."
: Suggests Reorganization.
Section contains the following
rather suggestive language:
The committee may, in the event |
It deems II expedient and at such |
time. or times. as 1t deems proper, |
formulate and submit a plan. or plans, |
for enforcing the rights of the de- |
positors. or realizing on the notes for |
reorganizing or rearranging the at |
fairs Of the Washington Utilities Com |
pany for the participation in any re- |
organization, read1ustment or rear
rangement Of the affairs of any COM
pany. any portion of the stock Of |
which is owned by the Washington |
Utilities Company" |
Any plan approved by the commit |
tee and by depositors holding SO per
cent Of the notes deposited hereunder
shall bind all depositors and become
a part Of the protective agreement.
Local Bnakers Confer.
There wer, some conferences this
morning between bankers holding the
notes in moderate amount, but Wash
no united action 1t is stated that
about cne-third of the defaulted notes
are held by a number Of Washing
ton banks and that bankers of Bal
timore and New York are the big
Local note owners should tare
united action. The suggestion made
by any local banker was that the
committee Itself was too small
Boosting the Convention.
A committee has been appointed to
work and boost the coming state"
convention of the District Bankers
Association to be held June IS and
2s at Deer Park
This committee is headed by George
0. Watson, with r. N Harper, W. "
Spaid. 3. A Bowles. William ].
Eynon. l.. W. Groomes, II. G. Meem
and others TO be named by the chair
man to assist.
Secretary Glass has agreed to be
at the convention and to address the
bankers. perhaps giving some notice
as to his future financial policies.
Professional auditors will discuss
the Value of an Audit" and there
VIII be many other technical topics
treated right from the shoulder.
Low rates have been obtained for
hotel accommodations and all the
facilities Of the resort are at the sery-
ice of the bankers.
Foreign Exchange Situation.
The foreign exchange situation is
decidedly critical II is apparent that
something must be done to Offset the
sensational advance in dollar credits
which in many foreign markets has
reached the stage where II practical
~ precludes foreign business with
the United States.
Charters New Ranks