The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1879-03-27
COMMERCIAL AGENCIES.

Commercial agencies fail as well as
other people. Pirates sometimes run out
of food and water, or attack the wrong
ship. McKillop & sprague Of New York,
one of the oldest commercial agencies,
went out last December, and their assets
brought only $25, when their liabilities
were $9500O0 A good deal of empti-
ness there And yet, how much better
are the othersP They are all pirates
alike, plundering merchants and busi-
ness men out of millions each year.
The following extract, from The Public
of Dec 10Th, 1878. 'urnal published
In New York city, shows up the rotten
ness of the Bradstreet agency, 1t is
about time these reporters were reported
on-the investigators investigated the
piratical concerns and their pirate agents
shown up. Read this extract from The
Public, and judge of the rest by this;
The most prominent agency having a
state charter is "the Bradstreet compa.
n.y." Having been in operation for many
years as firm, it became involved, was
organized as corporation under the laws
of Connecticut, and, it is claimed, was
placed upon solid basis by the addition
of new capital. In order to throw light
upon its present condition, we have OBJ
tanned from New Hayen, its place of in
corporation, copies Of all documents on
record, certified by the proper officers
The articles of incorporation were pub
lished only once, in one New Haven
newspaper, The Register of April 20, '76.
No member of the Bradstreet family,
and not one of the known creditors, liv.
ed in Connecticut; why the company
was not formed under the laws Of other
States does not appear, A resident
stoCkholder being required, twelve shares
were given to Mr.. L L, Morgan, the
manager of the New Haven branch. In
every annual statement, though he is
naned as holding twelve shares, those
shares are not included in the statement
of "capital stock actually paid in." As
no money or other property was ever
paid for his stock, it does not appear
whether he is q stockholder within the
meaning of the laws of Connecticut. AC'
cording to the articles of incorporation,
the capital stock was $5OO,0O0, held as is
shown below. But according to the first
annual statement, filed at New Haven,
Feb. II, 1877, the capital stock WAS as fol-
lows:
Amt Of capital stock. ...,""""",,.. S379,SOO
Amt Of paid In in cash..,"."...",,Sl73S 800
Amt paid in in other property" 100000 9S9OOO
In the list of stockholders, L. L.
Morgan appears for twelve shares,
value 81 200, making 1875, 900 stock in
all. The remaining $l25,000 in stock,
originally placed in the names of Brad
street and Clark, as trustees and agents,
was never subsequently reported as part
of the stock issued or outstanding, if it
was held in the treasury, to be sold in
order to raise working capital, it never
was sold. Not dollar appears to have
been paid in, as these two statements
show, excepting C) The 5000 900 paid in
"other property"-the precise amount
allotted for the good will of the old firm
to the members of the Bradstreet fam
ily-and, (2) the $l73S00 paid in in
cash." which was the precise amount of
stock originally allotted to the five pre-
ferred creditors, Atthe time these debts
were capitalized, we are informed, it was
the express understanding that the debts
of the old firm did not exceed $2l5 900,
of which $l73,800 was settled by stock
to preferred creditors as above shown,
leaving only SAL 900 indebtedness then
to be outstanding.
After the preferred creditors had &C.
Cepted stock upon this understanding,
examination Of the affairs in August,
1875, revealed the startling fact that the
debts, instead of being SAL 900 after the
Of liabilities, as had been
alleged, we're in fact $l56,000. The pre-.
ferred creditors demanded new distri-
button of shares, because of the evident
in the difference between
original liabilities and the nominal value
of assets. 1t is stated that, under threats
of exposure and other consequences of
Misrepresentation, the controlling inter-
est was transferred from the Bradstreet
family to the favored creditors; that
Henry Bradstreet was deposed from the
and left the country, and the
three largest creditors elected themselves
to the Offices and conducted the business.
1t appears that 1 1888 shares, or two
thirds of the amount originally given for
good will to the Bradstreets, had been
from them to three of the
creditors, viz $50 shares to Clark, 29l3
to Young, personally land not to the es-
tate of which he was executor) and 29l4
to Randolph. The other creditors orig
inally included gained nothing. Why
was the stock transferred to these three
and not to other creditors or stockhold-
ers2 In consideration, it will be suppos-
ed, Clark, Young and Randol ph must
have liquidated the indebtedness. Yet
it does not 80 appear. For in the annual
statement of the condition Jan. 1st, II,
Just quoted, the following is found:
Amount Of fdebts..."....,."..."...."" l2O 61
The Public in its article goes on and
shows up the Bradstreet concern, and its
utter rottenness-in fact swindle. 1t
should be remembered, too, that this
agency is regarded as the best, the most
reliable of all The others may be judi
ged from this.