The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-08-01
THE TAPpAN TROUBLE.


SENSATIONAL DEVELOPMENTS AS TO THE bos-
Ton Betting coMPANY-REpoRr or THE
COMMITTEE AS TO THE COMPLETELY OF
pnEs1pENr puRANr-GoINa INTO BANK
RUPTCy.
Try TELEGRAPH TO THE HERALD.
BosroS. July 81, 1878.
rbs DEVELOPMENTS made by the committee appointed
=. ,nvsstirste the condition OF the Boston Betting
comn.nv have created u little sensation by embody
,nr in III report a statement Of tho methods
used by Tappun and the completely OF Henry
r. Durapt president OF the company In
The orookedness Of the compsny's treasurer he had
known OF Tappan using the company's money since
1874 rs was shown by she production OF copy OF
n contract to which, together with Tappan and Du-
rant ono Cheever was q party, and BY which IL
vas agreed that Durant would, president, sign
notes for Tappan's the extent Of $4,000 for
Two years running four months and return
abs) and that Durant, Chccver ana Tappan
should mutually vote that tho company pay
d,ytaends of twenty-lnree per cent during
the time these notes were the market. the notes
10 be negotiated by Tappan. 1t was also shown that
the directors recommended that dividends be con-
tinued as usual In the year 1877, although they
wcro aware OF tho tact that the company was
yusovens that the Insolvency was brought about
BY tho speculatiops OF Tappan ana the use OF the
company's name to cover his private losses The
agreement also contained clause 70 Inc enecs tna'
ing and Packing Company shall exchange the'r prom.
issory notes al an average OF aDoat lott montns
for the amount OF 100000 being $25,OO0 each
month. This exchange continues Tor the next TWO
years.
In the agreement Ii. F. Dnrant agrees that he Will
iudorse the notes oil john G. Tappan Il Co Tor the
Smount OF $50, 900 whenever requested within said
md No
the New YORK Betting and Packing Company
may held by the Boston Betting Company within
agrees negotiate the SAID promisory notes OF John
G. Tappan Il Co, Endorsed by the Boston Betting Com
pn The pcst terms possible Tor Messrs Cheever 4
Durant, probably al seven per annum discount and
brokerage Of per cent, but from any change
In the market the discount the paper exceeds that
rate deficiency comes out Of the proceeds Of the
notes and from Mr.. Tappap. u. +. Durant and
John Cheover agree that they viii purchase back OF
John G. Tappan q, the end OF the said two years
Il requested by Mr. Tappaa. 500, 900 OF said stock
OF Boston Betting Company, paying therefor $50 600
not exceed an average OF seven and half per cent.
This was signed by both Tappan and Durant.
GREAT SURPRISE
The sensation at the meeting Of the stock holders
when this read was indescrbabIe The stock.
holders knew nothing OF this little riDg the counsel
OF both parties and their on1dental friends alone
having any cosnzance OF the matter
GOING INTO BANKRUPTCY.
The committee further reported that the direct
liabilities were s5ls,O7l So; contingent liabilities,
$685., T49 Total $74S20 96 Total assets 1884 56A So
Deficits, $500, $50 10. Tho meeting voted TO put
the company Into bankruptcy and meantime to organ
izc o new company under the nsme Of the
Boston Rubber Betting Company. In showing Tap
pans methods committee stated that the macnin
cry valuation marked Gown by him few years
ago from $4,000 to $50, 500 IN order That no might
mot be compelled to pay so heavy dividend AZ usual
TAPPAS's SALARY.
They reported that the salary paid to Tappan by
the company had aggregated throe-tweptieths
Of all the dividends. Notwithstanding that
she dividends had for long series OF years
averaged twenty-thrce and halt per cent per annum
They expressed the opinion that had 1t not been Tor
The specuIations OF Tappan the company would now
have a clear capital OF $3.50, 900 over above
Its indebtedness OF every description.