The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1921-08-04
CT. "a. CREDITORS
SEEK MORE DELAY
Proposed Reorganization Plan Is Approx
ed by 5ondhoIders and Awaits
Local Action.

all of the working hours of last week
were held by the creditors committee,
representing majority of the material,
supply and freight adjustment claimants
of the Gulf, Florida and Alabama railway,
representatives of the bondholders' com
mittee; representatives of the syndicate
of certificate holders and the industrial
commission of the chamber of commerce.
Practically every phase of the entire
situation was discussed, but no definite
arrangements were perfected The sit
uation developed many complications, as
there were three separate factions who
naturally were looking forward to pro-
tecting their individual interests.
There is no question that much good
resulted from the conferences, however.
and all concerned felt that the way had
been paved toward a final solution of the
vexed problems.
The creditors committee, representing
the material, supply and freight claim
anita, composed of Paul z. Stuart, r. NJ.
Cary, NJ. l.. Bear, J. CT. Holtzclaw and
j. IL. Mccormack, bent every energy to
secure such concessions and arrange
ments as to the reorganization of the
property which would preserve to the
creditors and to the people of Pensacola
the assurance that fair and impartial
treatment would be accorded by the other
interested parties and the railroad pre-
served as an operating entity.
The whole problem was so comrsex.
there were so many matters to be con
sidered that the conferees agreed unani-
mously that to work out a detailed plan
of financing and reorganization would
require more available time than allowed
if the sale was to take place August 5,
and the creditors committee, as well as
the industrial commission, have asked a
postponement of the sale for 80 days, ere
which time no doubt satisfactory arrange
ments will be made.
The text of the letter sent by the cred
itors committee to Judge w. B. Shop
pard, now holding court in New York
city, is as follows:
"A receivers creditors committee, COM
posed of Paul =. Stewart, J. II. McCor-
mack, ]. G.. Holtzclaw, r. NJ. Cary and
Max L. Bear, was recently formed to rep
resent the interests of the general cred
itors of the receiver OF the G., F. & A
Ry. Co. This committee has obtained
authority from about so per cent of the
Pensacola creditors, and from about so
per cent of the total number of creditors
to act for them. and it expects to e.
ceive authorization from many others still
unheard from.
1.-The committee has had several cen
ferences with the representatives Of rhe
bond holders protective committee, and
the receiver, representing what is known
as the syndicate. No agreement has
been reached, and tonight those reLrx-
sentatives are leaving Pensacola.
THE committee desires, however, 70
perfect arrangements to protect the sen-
eral creditors it represents, when the fore
closure sale of the property is had AS
this sale is at present fixed for August
5, the committee will not have time to
make Roadway in so short time. There
fore it respectfully requests your honor,
if you can see fit to do so, to postpone
the sale for 80 days longer, to enable the
creditors thoroughly to organize to see
that their interests are protected at the
SALE
The industrial commission also sent
the following letter under date of
August i:
1--WE understand that the creditors
committee, representing the holders of
material, supply and freight claims |
against the Gulf. Florida and Alabama
railway, have asked for a continuance of
the foreclosure sale scheduled for Aug. 5. |
The industrial commission, as you
know, is vitality interested in the future |
OF the c., F. & A railway, realizing how
portation fabric of the community.
1.-The industrial commission has been |
represented at all of the conferences held |
the past week between the representatives |
of the bond holders committee the syn /
dictate as represented by Mr.. Steele, and |
the creditors committee.
Progress has been made toward the |
solution of the problem, but no formal j
agreement was reached, nor do we be-
lieve any agreement will be reached until |
the entire matter will have been thor
oughly threshed out which, of course
takes time.
There is good prospect, however, of |
such an agreement within the
next two weeks, and we therefore join
with the creditors committee in asking
for an adjournment of the sale
1.-THE industrial commission is interest
ed. of course in seeing that the creditors
of material. supply and freight claims
are protected fully. and that in any re-
organization plan sufficient money is pro-
vided for operating expenses, and that
above all the G., F. & A. railway be |
as an operating entity.
There are, of course, these economic !
as well as the legal phases which must |
be considered and therein lies the reason
for the industrial commissions activity |
in the matter.
Working out details of Reorganization,
of necessity, is a slow and tedious task, |
but in view of the progress already made, |
we concur in the creditors committee
request for postponement.
THE industrial commissions activity