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Show CON. WAGON GO. FiEOniG PLANS FAVORED - aassasseaamaaassssss. 3udgt Johnson Approves Report and Supplement by Receiver Which Outlines Out-lines Payment Method Federal Judge Tillman V. John- eon today approved the report and J supplemental report of the receiver for the Consolidated Wagon and Machine company, which embrace! plan, agreed to by creditors and stockholders, for the rehabilitation of the implement eetabllehmenL The . supplemental report, eubmltted In V "open court today, followed Inetruc-tlone Inetruc-tlone by Judge Johnson on the July A rule day that representative credit-, ore and stockholders ehould confer con-fer with the receiver and arrive at ftnme definite plan under which the affaire of the company could be taken out of the federal court by May 1, l:. The original report wae lndefl- nlte ss to a data for finally winding wind-ing up the receivership Into which the establishment was plunged becauee be-cauee of overextension and the piling pil-ing up of more than l2.0Oe.00e of Indebtedness. Today'a supplement t that report presents a plan un- der which ths receiver hopes to ' rejuvenate the Institution and which prominent creditors and stockholders stockhold-ers betievo will enable the management manage-ment to put the buenless on a sound foundation. TO COLLECT DEBTS. I'nder ths plan, the suggestions contained In the Original report for the conduct of the business are approved ap-proved and every effort will be made to dispose of stocks by spo-. cial aalea and to collect outstanding outstand-ing obligations for ths payment of creditors. In view of developments In the receivership, ths report expresses ex-presses a ttellef that an Issue of preferred stock.- rejected by stock-h stock-h Id era and creditors when attempted attempt-ed rhortly after the naming of a receiver, la now feaslble.-iin fact, many of the most seriously Interested Inter-ested on both sides have signified willingness to subscribe, for tha preferred stock under a modification modifica-tion of the original plan for Its 1-ausnce. 1-ausnce. The present plan eaTIs for an Issue Is-sue of 100.000 In preferred stock to he marketed approximately one-half one-half each to stockholders and creditors. cred-itors. Subscriptions to this Issue, however, will not become effective until the obligations of the concern to Its credit ore have been reduced Nfrom $2,200,000 to 1 1.: 00. -00 by May 1. 1K4; nor until at least 100,000 of the preferred lasue haa been secured. se-cured. Under thee restrictions, thn 'receiver point out. the money so furnished by the stockholders and creditors will go to a reestabl.ah-ment reestabl.ah-ment of the business and not to the satisfaction of creditors, aa was objected ob-jected on the origlnsi plan. FEWER DIRECTORS. Another Inducement to those concerned con-cerned to meet the Issue snd save the business from extinction Is a ehrlnkage In the directorate of the x corporation from thirteen members to seven. These seven. It la aald. will be selected from a grown of the larger stockholders and creditors whose personal Interest In saving the -business will be an added aa-surance aa-surance of auccees to the preferred stock aubesrlbers. To handle ths solicitation of subscriptions a committee com-mittee of three. Including W. R. Wallace. George T. Ode 11 and Frsnk Kleher. hss been named. Subscription Subscrip-tion blanka are to be prepared at once and an attempt made to have the full amount necessary sub-! scribed within ninety dsyg. Other features or the supplemental supple-mental report refer to ths methods' of collecting outstanding ' debts bf paying bonuses to collectors and district aente, and to tnY efforts being mttde to dispose of stocks at sale prices. In ths first report, the , receiver pointed out, ths rats at which creditors' obligations are Doing Do-ing discharged and tendered a schedule which Indicated that at 'I fee ll.000.0og would have been paid these prior to May 1. TO FINISH EOT MAY 1, The supplemental report reiterates reit-erates ths opinion In this -regard, but aaka only permission to operate oper-ate under tha present method until un-til January 1.- At that tlma the receiver will report progress to the court and, if then It appears unable to clean up the eompany'a affalra V 'by May 1. under the present reorganisation re-organisation plan, some other plan to meet ths new conditions will be auggeated. In any event, ths affairs of the company must be out of court by May 1. In commenting on the report re-port and Ita aupplement. Judge Johnson emphasised .this point. He Instructed the receiver to proceed with all expedition to wind up the affairs of ths corporation. If the reorganisation falls, then the stocks of the company must be disposed of In bulk or otherwise so that the creditors may be satisfied so far aa possible. h Insisted. "As a cUlsen. Judge Johnson said. I am as desirous as anyone that this company should bo re-established and continue In. business. busi-ness. But, sitting ss- a court. I must Insist that in some manner or other Hs affairs, ,so far as the court Is concerned, shall be wound up by May 1. COURT APPROVES. I have Indicated my approval of ths plan here outlined. I think that now therl Is no difference In our minds as to what should be done. It Is not ths aim of the court to hamper the receiver in his administration of tbo comapny affalra. af-falra. The general plan Is Approved. Ap-proved. My one Instruction Is. snd I assums It to be your Intention, Inten-tion, to work out tha details on sound business lines." The only denial mads by Judge Johnson was to ths suggestion ttw-a ttw-a man employed to direct ths preferred pre-ferred stock sale bo placed on the receiver's payroll. "I can't approve of that." he said. "While I hope you will bo successful I do not think the cost of this attempt at reorganisation should be made a burden on the receivership. The court bas nothing; whatever to do with the preferred stock issue, and I believe ths stockholders and creditors are sufficiently Interested to do that work themselves." In explaining tbo wide accent -anco of ths terms of the present plan, the supplemental report states that they were agreed to at a meeting of prominent stock hol tors and creditors with the srecelver Ion August t and on Auguet at a special meeting; of ths company board of directors sn call of Heber J. Oraot, president, that board ap-' ap-' proved the measure. |