New-York daily tribune., 1858-02-08
A CHAPTER IN our FINANCIAL HISTORY.
HOW rHH sAY STATE COMPANY wxHE RuWKr
TPg FAILURE OF LAWRENCE Sr0SS & Co.
The Buying Through Of the Tarig.
CHARGES OF FRAUD AND DECEPTION.
The company to be Wound Up.
F,e~ TA Bos:s. yo-rsAI

Az urs.d meeting OF the stockholders OF the BAY
State Mills was held al DO. Mix street yesterday ~
II o'clock. There quite = large attendance OF
ibe stockholders The object OF the meeting < mus
specified in the cali.
To hear the report of he Committee appointed on
the sth of December last TO investigate the anairs o
the poraon and 10 recommend such couTse ~ they
might Judge beet in order 20 secure the interests oi 'he
CORPORATION, and 20 act thereon
4" Also 10 al vacancies, if any there shall exit IN
apv of the Offices of The corporation.
. To see what measures shal! be adopted iof the
,aveu If ts debts hether the whole any part 0f
=. property, real OF personal shall be sold or pledged
AMI whether measures shall be taYen 70 close us al
fairs anc 20 dissolve the corporation, and generay
20 sdopt such measures may be judged necessary
and proper in the presen. condition OF s sair which
might be adopted under any form of notice.
fhe meeting was called 20 order by the President
Andrew T. Hall, esq., and the cal was reN oy A. u
Ttnny, the Clerk.
Committee, then submitted their report, as iouew':
| Te ht s.oesho!Sers 9f 'ts Boz state MUS -,
GrsrLEMES: The Committee appointed, nnder tne
vote passed az your meeting held on the sth day o
December last, investigate the affairs OF tne cor
pOration, and 10 report 70 an adjourned mIe.s sIu
recommend such course ~ they may Judge oeet 10
orde 10 secure tae interests vi The corp0r"'on anu
also TO bring 10 just punishment any pefs0ns, any
| there be, crimipally hable
REPORT
rbs. Msssrs Geo. w. Lyman and Charles 7. Cur.
,s declined 10 act a. members OF the Committee ana
Hestr. W. r. Z. Wsshburn and L. :. Williams oil
Eesburyport were chosen by the Committee, III PuI,
S authority nsSa by 'I he. aaSc and
they accepted the appointments and have acted with
| the other members.
l. may appear that there has been an unnecessary
delGy In making the nYe g6ons into Ga" afair- oi
the COMPANY and reporting thereon, when impress
| sion may not be removed by reading the resun lh
explanation of which, hosever, II must be remein,
beIed that some OF the Committee, not 20 say NJ "
US have had other engagements OF Importance "hch
| haxe red much
auinatons appraisals and estimating 10" Nau, W 'u
| property making inquiries aud the WNerllsA'onS va
complicated accounts and books in most cases WIN
ont he ordinations of thos. by whom transactions
were made and entries directed We have been often
bafied and interrupted aEdthat We have endeaN"fsd
| 20 perform these duties a, thoroughly az 'out oe'
within ,h. limits of any reasonable l'ngth Vi tui''
| Ne have caused the books oi the Company 70 oe
carefully examined, and have also examined the books
| OF LaeTepce, Stone n Co., and compared ul'n 10
| gstb.r IN many Instances. by some ot our uumotG
We have examined the notes receivable and the per-
| ,onal property, and compared them with the books
| and in general az far possible, have, by personal
examination asc.rtaned the actual existence custody
| and value thereof. The mills, real estate and ma
| chinery at Lawrence have been thoroughly aud mi-
putey examined ard exact schedule oi all the ma
chinery been made, with the cost thereof a. charged
the books OF the Company by one of our number,
and a fu valuation thereof taken, Itom by IN,
With the assistance of competent eXpots From these
data statement s made, showing the condition OF the
Company the amount OF It's debts and Liabilities, anu
| the assets and resources to pay the same -
| This company was Incorporated in February, 1910
| peratons were soon commenced; land and water
power at Lawrence purchased, mills erected and
| the manufacture of goods begun IN leiS. Subse-
quenty and most unfortunately, another mill NO. ~
| was added, which was completed in May, lsol. THIS
great enterprise was gotten up aud prosecuted MANI!
| through the eIerton- OF Mr.. Samuel Lawrence, VINO
| has been the Treasurer and prlncpa! manager ruh
the beginning, with chor. intervals, when tem
porary Treasurer was appointed and of Messrs. Law
renee Stone Co., who have been the selling agents
1 MlOlp
time Of it, failure, the first day Of October last.
| The parties who composed this firm when hIst they
acted in that capacity, were samuel Lawrence, Wm.
| W. Stone Jarvis Slade and II. T. jenkins the first
| named having commenced business as member OF
the firm of W Il 5. Lawrence, in 1872. In 1896 when
| Mr.. Stone entered IL, the name was changed To W.
| s. Lawrence Stone under which II continued till
| lSil when Mr.. VIM. Lawrence, the late respected
head OF IT, retired and the present name wa assumed
| Mr. Sade joined it in lSi1i Mr.. jenkins, January !,
| ls4S; and Mr.. o. II. Perry, January |, 1900
| Mr.. s. Lawrence received salary Il 5000 per
| snnum as Treasurer and the firm commission Of :.
per all sales they not guaranteeing them, and
very liberal allowance for clerk hire. labor and other
expenses The sales OF goods for til, Bay State Com
paDy amounted in 1856 to 81 9i5 1913 ~, giving them
| clear commission in that year of $is $50 -, beside
| charge for expenses of selling 1850 ~, which IN
cude6 rent, clerk hire labor transportation, &c. The
entire amount Of their commissions from 1913 to 1857,
inclusive from this Comp any alone, was $50 Ol 81
averaging $3 507 Is per annum, beside the expenses
Of selling during ten years, bu. being much larger
for the latter part Of the term. Besides this however
:hey were doing large commission business for the
Niddle.ex Pemberton and New England Worsted
Companies fSom which in the aggregate they received
during the year 1856 including commissions from the
| Bay State Company $9i799s 81, although they sold
| for tire Worsted Company but the ast three months
| Of the year. Mr.. Lswrences salaries were credited
| by him 10 The Erm.
| The firm, a. such, had capital. TIE psrtners
had their own private property but nothing wss ever
pu. into the concern, excepting balances Of accounts
| Of prJits which light be due 20 them respectively.
By the sgreement among themselves each partner had
right to draw out HE shsre OF the earnings at hls
| pieasure-a right which seems 10 have been freely
eIerc csed by OF them, since, The time Of their
Slade 81, ,443 "a, and Mr. jenkins y 100 81; while
| Mr.. Stone was a creditor sl36l3 A. snd Mr. Perry
$lj0l9 93. They, fo scOnsiderable period held stock
il the MiddeseN and Bay State Companies amounting
ID about $500 010 which, TO use technical expires.
ron was carried by raising money on pledge u
il, and by floating indebtedness. This condition Of
| :heT affairs the Committee consider 10 have beea
mos. reprehensble and may perhsps have been the
primary cause OF ali their troubles. The firm and some
OF the nd7idual members appear 70 have dealt the
stock 20 large amount from the beginning and 10
have been slmoe. constantly transferring and receiving
.rat sieIs Of shares, aud changing and pledgng the
| ssme. Sometimes i would seem ~ have Deen done by
way OF speculation, oftener perhaps 70 keep up the
prIce, 90 to prevent inquiry and alarm 20 the
| condition Of ts affairs and n one instance ~ least
they apIeaT 20 have purchased large amount Of stock
a. great advance the marke. price from holder
for himself and others who Was known not 10 be sati-
fed with their ansgement and who did not withhold
expression Of his opinions, geuileman Of Busnce
and who IS known TO look carefully af.er his own aud
| the interests Of others confded 20 bis care
/, has been found difficult 10 separate entirely and
distinctly the acts ard do.ngs u the Treasurer from
these .: the firm. They are much interm.neled and
confused, and there seems to have been 1T much d.
ti-cton kept up OF NJ Lawrsnces 49, ar Treasurer
and az member OF the firm and Mr.. sade SEEM. in