The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1858-02-07
DEVELOPMENTS OF THE PANIC.
The Bay State Mills and Lawrence, Stsno
4 Co.-The Concern to be WOand
Up-The DefauIting Bank Treasu-
reP in Hsrtf0rd-The Worees-
ter Defaicsti0n- -oommer.
elal Frauds In England,
&c., &C.. &c.


Another Meeting Report Of the Invegeagatan9
Committee-Vots OF the Stockholders %
dissolve the Company and Wind up its
(From the Boston Journal, Feb. 81
An adjourned meeting of the stockholders Of the
Bay State Mills held at No. 1 Mifk street, this
forenoon, at ii o'clock. There was quite a large at
tendance OF the stockholders. The object Of the
meeting is thus specified in the CALI
To bear the report of the committee appointed On the
9Th Of December last TO investigate affairs Of the Cor
poration, and 10 recommend such they might
Judge best In order 20 the ntses corpora
Also To Ill vacancies, fsuy there shall esis, IN any OF
the Offices Of the corps poraton.
10 whas shall be adopted for the payment
OF ts debts; whether the whole any part Of IA pro-
pery real or personal ghal be sold or pledged; and
whether sha be taken 10 close IL aASs and
10 dissolve the corporaton and ly to Adopt such
measures may be judged necessary and proper the
presen, condition Of s affairs, which might be adopted
under any form Of notice.
The meeting was called to order by the President,
Andrew T. Hall Esq, and the call was read by A. G..
Tenney, the clerk.
Hon. F. B. Crowninshield, the chairman of the
committee, then submitted their report, which we
give nearly in full below
The committee, in their Introductory remarks say,
in expla alton OF what may appear TO have been an
unnecessary delay in making their report, that "n
must be remembered that some Of the committee,
not 10 say all of u.s. have had other engagements of
importance which have required much Of our time,
and that in the examinations, apprasas and esti-
mating the value OF the property making inquiries,
books, in most cases without the explanations of
those by whom transactions were made and entries
directed we have been often baled and interrupted;
and that have endeavored to perform these duties
as thoroughly as could be, within the limits Of any
reasonable length of time. We have caused
the books Of the company TO be carefully ex-
amined, and have also examined the books Of Law
renee, stone CO., and compared them together
in many instances. BY some Of our number we have
examined the notes receivable and the personal
property and compared them with the books; and
in general AZ far possible, have, by personal ex-
animation ascerained the actual existence custody
and value thereof. The mills, real estate and ma
cbinery AT Lawrence have been thoroughly and mi
nutely examined, and an exact schedule of all the
machinery been made, with the cost thereof az
charged on the books of the company by one Of our
number, and careful valuation thereof taken item
by item, with the assistance Of competent exports.
From these data a statement IL made showing the
condition OF the company, the amount Of its debts
and liabilities, and the assets and resources to pay
the same"
The committee then proceeded TO i've belief his
tory OF the Bay State mills, Of which corporation Mr..
Samuel Lawrence has been treasurer and principal
manager from the beginning, and Of the firm If Law
renee, Stone CO.. who have been its selling agents
The members OF this firm Williara Lawrence
Samuel Lawrence, William W. Stone, Jarvis Slade,
II. T. jenkins and o. II. Perry. Mr.. William Law.
renee retired from the firm in 1871. The committee
say.
mum az treasurer and the firm commission of "a per
cent ON all sales, they not guaranteeing them and
very liberal allowance for clerk hire labor and other
expenses The sales OF goods for the Bay State Com
pany amounted in 1856 to 81 ,9lJ 49j 6j giving
them clear commission in that year Of s48637 a.
besides charge for expenses Of selling s33 $50 81
which included rent, clerk hire, labor, ,ransporta
ton, NC. The entire amount Of their commissions
from 1S46 to 1857, inclusive, rom this company
alone, was s335,071 81, averaging 33,5O7 Is per
annum, besides the expenses of selling, during ten
years. but being much larger for the latter part of
the term. Besides this however they were doinga q
large commission business for the Middesex PEN
berton and New England Worsted Companies from
which, in The aggregate, they received during the
State Company, t94 100 81 although they sold for
the worsted Company but the last three months OF
the year, Mr.. Lawrences silaries were credited by
him 10 the firm.
The firm, as such, had no capital The partuers
had their own private property, but nothing was
ever put into the concern, excepting balances Of
counts Of profits which might be due to them res
pectvely. BY the agreement among themselves
each partner had right 10 draw out his share of
the earnings at his pleasure: right which seems
TO have been freely exercised by some OF them,
snse sl At The time Of their failure Mr.. Lawrence
and Mr.. Jenkins f5,769 36; whlie Mr.. Stone was
creditor 1913 A. ard Mr.. Perry tl5 Ol9 93. They
Tor considerable period held stock in the Mddlesex
and Bay State Companies, amounting 20 about
$500 900, which to use technical expression. was
carried by raising money on pledge OF il, and by
4 hoatiDg Indebtedness. This condition Of their al
airs the committee consider TO have been most
prehensbie. and Il NAV perhaps have been the pri-
mary cause OF all their troubles The firm and some
II the individual members appear TO have dealt In
ibe stock to large amount from the beginning and
to have been almost constantly transferring and re-
sewing transfers Of shares. and changing and pedS
ing the same. Sometimes IL would seem TO have
een done 10y way Of speculation. oftcner perhaps 20
keep up NE price 40 az To prevent inquiry and
alarm TO the condition OF it, asars, and in in
stance, at least, they appear 10 have purchased q
arge amount Of stock at great advance sAe mar.
set price, from holder for himself and others Who
ErC~ - 60 49, afr1.r.. -
md who did not withhold an expression of his opin
ons. gentleman Of influence, and who Il known 20
ook carefully after his own and the interests of
thers confded TO his care.
IL has been found difficult 70 separate entirely and
distinctly the acts and doings Of the treasurer from
hose OF The nrm. They are much interminged and
onfused, and there seems 10 have been not much
distinction kept up Of Mr.. Iawrences acts a. trea-
Gems In many cases "a have acted and managed a.
hough he had been, so to say, joint or assistant
ressufer.
AZ the time when they undertook the agency of
he Bay State Company they were and had long been
be selling agents OF the Middlosex Company, and
hey subsequently, in September, 1858, became the
eIling agents OF the Pemberton Mills, and in Sep
emher, 1856, OF the New England worsted Com
any. These agencies were all Of large magnitude
nd the companies all owed large debts, and this
I'm were, by the terms of their employment, bound
, come under heavy acceptanccs, and were in fact,
the habit OF raising or Of assisting in raising large
nms Of money TO carry on their business besides
nd in addition 70 providing for their own indebted
ess which seems 10 have been constantly increas-
~, notwithstanding the almost enormous amountof
heir commissions
Until May, 1856, the financial accounts Of the
ompsny were kel, IN the books OF Lawrence, Stone
Co, when o separate set OF books In ts own name
ras opened in Boston. Previously its funds were
lmost entirely mixed up with theirs, and even after
he change the distinction was imperiectly observed
y them. They were accustomed 70 use the funds
I the Bay State and Middlesex Companies, of which
sst Mr. Lawrence was also treasurer, in common
nth their own not without some show of distinc-
on Il l. true Tor they from time 10 time made set
encpts Of the different baances-but in fact habi-
ialy used the money Of either to pay the claims
painst the other, as occasion required.
This state OF things was carefully concealed from
ie directors, was the fact of their Indebtedness
, the company, which had existed for a considers-
e period Of time, probably for several years; but