The sun. [volume] (New York [N.Y.]) 1833-1916, 1879-04-23
FRANK LESLIE'S TROUBLES.
EFFORTS TO CHANGE THE METHOD
or MIN1GIN0 ms ESTATE
The Assignment In Is77-How the vnine Of
the Assets were Enhnnced-The Indebted
ness Reduced From, 9iOs, 900 60 S28O, 900.

assignment OF all his property to Isaac w.
England for the benefit OF his creditors. He
was publishing score OF illustrated news
papers and magazines. and doing a business
that cost over million dollars a
year. The Illustrated Newspaper and 9TH
ers were profitable. but some OF the
periodicals were published at q
dead loss. Under tho insolvcnt laws Of this
State 1t was Mr. Englands duty at once to sell
tho property. and distribute tho proceeds
among Mr.. Leslc's creditors. Tho largo cred
itors thought that this would be n great sacrifice
OF their interests Mr.. Lesios debts footed
up over 100000. and his nssets were
valued at 10000. They felt that by care
ful management his publications could
be made very productive. and within n few
years wipe out tho greater portion OF the in
debtedness. general meeting Of the creditors
was held at the office OF ;he American News
Company. An effort was made to save tho
property and forward tho general interests OF
all concerned Tho assignee was requested to
continue the business up to the close Of 1880.
Tho creditors agreed to accept Of 80 per cent Of
the profits realized within that time. The re-
manning 30 per cent. was TO be paid to MIR.
Leslie for his services as general manager
OF the artistic branch of the business. Every
thing was to be turned over to him on Jan 1.
1881. Gov Rice OF Massachusetts, John II. Hall.
William II. Parsons. Edward Goodwin. Jr.. and
William d. Wilson were appointed Committee
TO look alter the interests of the creditors. The
first three are paper dealers. who held Mr. Les
lies notes Tor big sum OF money. large ma
iority OF the creditors signed power OF attor-
ney. placing their interests in the hands Of this
committee for tho period of the trust and au-
tihorized ,he assignee to continue the publica-
Mr.. England found tho employees unpaid. He
borrowed &c 900 aud paid them In full A num-
Der suits were pending against NJ r. Leslie Tho
most important was one brought by the United
States government for the alleged undcrvalua-
100000 was claimed. This was settled Tor
about 50 900, and the minor suits were compro-
missed. The assignee was besot by another DIM
Guilty Many creditors who had not signed tho
power Of attorney were giving him trouble
aud he deemed It advisable To- buy their
claims. MIR. L"slies publication business was
being conducted IN four scattered buildings.
greatly 70 It's Disadvantage. One Of the earliest
TO its present site in Park place. wherc n
eommodious building was taken at re-
duced rental. The change cost about tl2. 900.
and $1,000 was spent for new machinery. by
~ I4dlrious ncd pTnnng &c expenses were reduced
had been purchased on time much above mnr-
ket rates and NJ q runous rate OF interest. He
changed this 10y buying supplies for cash at the
The result Of his action was quickly seen.
The extinguishmcnt OF claims against the estate
inureu TO the benefit Of the remaining creditors
by enhancing the value Of the assets The
assignee conducted the business SO carefully
that cash dividends were declared Up 10 the
present date upward Of million dollars has
been received and disbursed. the net profits
amounting to az least sl3OO00 Claims against
the estate 10 the amount Of 10000 have been
settled. and about $50 0O0 paid directly 10 the
creditors. The total liabilities have been re-
sets that were valued Mt 5000 are now paying
interest on 100000. Tho estate il In such a
dend OF per cent every two or three months.
u permitted 10 carry on the business without
be perfectly satisfied with the administration Of
tho estate. Pront and loss accounts wcro made
every week. and left open TO the inspection Of
full statement up to date. The Committee en-.
ployed skilful accountant to go over tho
vouchers and accounts. Six weeks were spent
in an elaborate examination, and thcy were re-
ported IN perfect order.
Meantime MIR. Leslie became restless He
desired 10 regain control ot his property. lie
negotiated " IN Messrs. Rice Parsons. and
Hall. the three paper dealers on tho Committee
The hist Try Of the negotiation Is unknown bat
IL is known that four Of the Committee met
without the knowledge Of the NTH member and
as representatives Of the other creditors. ar-
cepted proposition from Mr.. Lesl., to turn
ihr business ov,rto him on his promise 60 Iay
- per cont. ~ the remaining Indebtedness hy
Jan. /. lsS2. The ussigncc was instructed 90
turn over To- him his whole estate. Tho four
committeeman are empowered To- appoint "A
sun-coininlitee OF three 10 supcrlntend Mr.. Les
lies operations. and this subcommittee Is 10 |
Ihke chaitcl mortgage as security for Mr..
l"All"s promise 10 pay, The discontinuance |
or starting Of any publ cations Is 20 depend |
upon the Joint consent of the subcommittee |
pnd Mr.. Leslie. The appointment of book
keeper and cashier is given to the sub-com-
mittee, the cashier acting as n general assistant
and cOuutrrsigning all checks drawn ly MIR
Leslie. All aocumulations Of money over |
amounts quo ior current liabilities nrc to be |
converted into diyidends at the discretion Of |
the Committee. Mr. Leslie agrees not TO pur- |
chase any machinery or permanent property |
not exceeding 800 in value without consent ot |
ing an equitable lien on all property and ma |
terlal that may be- acquired by Mr.. Leslie after |
the release. Legal and other proper expenses |
are 10 be paid by Mr. Leslie. who is to draw
500 weekly Tor personal expenses. and 81 900 |
per annum additional in trade ADVERTISING. |
The papers were drawn and signed. and the |
assignee aud other interested parties cited to |
appear before Judge DAILY of the Common |
Pleas on Monday last and show cause why |
there should not be "A general accounting and a |
transfer Of the estate TO Mr. Leslie.
Thus far everything had run smoothly. Some |
Of the large creditors. however. objected to this |
summary disposition OF their rights, and there |
we're shower OF protests. Daniel A. Bullard |
n Sons of Saratoga nt once began an act iOn for |
tine purpose Oi annullng the power Of attorney |
and stopping the iuihment Of the agreement. |
their complaint that the trust estate now In the
m hands ol tne nsSignee ,g II worth enough to pay
amount that wonld cover them. They them |
selves offer 10 give $l65OOO for the business. |
THIS would at once realize a greater sum
iwo years. NMioTs MsssTs Baard Sem fa9sS @sso @,so
subcommittee. made the agreement knowing |
that il was not for the true interests OF the |
creditors. and with tho intent Of securing |
some future profit or advantage 10 them- |
selves. 1hoy further aege that under |
tho terms OF the agreement with Leslie. |
Messrs. Rice. Hall, and Parsons could select |
themselves as a sub committee of three to con- |
trol lesies future business. thus excluding |
the other two members OF the COMMITTEES. |
Messrs. Wilson and Goodwin. They say that |
these men propose to take this management OF |
the estate without giving any security to the |
creditors for the faithful discharge OF thoir |
duties At the same time they release the as
signre from 800 900 bonds, and substantially |
rolense all the assets held by the assignee as Il |
protection to the creditors.
Mr.. VIM. ID. Wilson. one OF the Committee ap-
pnted by tho creditors, has brought an action |
against his fellow members. He asserts that |
the meeting ut which the resolution 10 transfer |
the property to Mr. Leslie passed was secret |
meeting He alleges that II WIS held without his |
knowledge and in fraud OF his rights as |
one OF the members. He claims that he |
had a right TO be heard ON q matter Of such |
grave interest to the creditors whom he repre- |
sented. He seeks to have the contract thus |
made declared null aud void, AMI the Commit |
tee restrained from doing any further act in |
consistent with the true interests Of the cred- |
power Of attorney and Il definition OF the duties |
Of the trustees.
that another five per cont. dividend would be |
pnid TO Lcslie's creditors on April Ia. There |