The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1881-11-29
ANOTHER CRASH
IN NEW YORK FINANCIAL CIRCLES.
rA' Great American Book Exchange Gees Vad,S
to the Tua' Of AbOut Three Hundred .ThSE,
'aAd DOllaI-A Syndicate that Flooded
the Laad with Cheap Literature.

SEw YoRK, November 2S.-The embaI-
rassment Of the American Book Exchange
Of No. 7oi Broadway, eliminated Saturday
in the appointment OF Sands F. Randall as
receiver by the Supreme Court, on the ap-
plication Of E, B, Mack. It has been OK
pected for some time past that such
course would have to be taken, although
it was hoped that syndicate of the largest
creditors, which has been carrying the
company for some time past, would be able
to bring 1t out Of It's embarrassment; but
some OF the smaller creditors began suits,
an attachment was issued and judgment
obtained, and It was thought advisable by
the parties interested to have receiver
appointed, so that all the creditors might
share alike. The Exchange was incorpor.
ated under the laws Of this State March II,
1873, with capital stock OF $4,000, OF
which $4,000 was paid in, The author.
lied capital was increased January II, 1880,
10 100000, OF which $4,000 was paid i'm
$40, ,0OO cash and $4,000 in property, their
statement showing debts to the amount OF
$45, 900 at that time, The capital stock
was again increased February i, 1881, TO
$3.50, 900, and their annual statement, dated
April 81, showed that 100000 had been
paid in-l50,000 cash and $4,000 in prop
erty-and the existing debts did not ex-
coed $4,000,
The company succeeded to the business
OF John B. Alden, who began in this city
as dealer in old books, Mr., Alden becom.
Ing the President For nearly three years
the transactions were confined to second.
hand books. In the autumn OF 1878 pre-
parations were made TO enter the market
as publishers Of standard books, ut lower
rates than the older publishing houses
were offering, and their first volume OF
Chambers Encyclopedia" appeared In
January, 1870. This work was followed by
Others at a rate that astonished the public,
II Is said that the sales for 1878 were $780,
900; 1870 100000, and 1880, 100000.
The company advertised extensively, and
II Is stated that in 1880 $4,000 was ex-
pended for that purpose BY this means q
knowledge Of the cheap publications issued
by the Exchange reached vast number OF
persons, whose orders in small amounts
formed liberal patronage.
The company started at. No. 81 Beekman
street, thence moved to the Tribune build.
ing, and atterward to No. 764 Broadway. A
bindery was established first in Spruce
street, which proved insufficient to meet
the growing demand Of trade, and an addi-
tional bindery was started In the fall Of
1880 in Vesey street, A statement to stock
holders on December !, 1880, showing lla-
bilities S230,579 G3, OF which $4S, 100 was
capital stock paid up; bills and accounts
payable, $ll0,702 90; undivided surplus,
81, 100 07i assets, stock, furniture, machine
ry, bookplates, ETC., net cash value, $2l3,-
29l; Cash on hand, $2,0l2 25; bills feCeiva-
bic and accounts due the company, $l,269,-
3S.
1t Is said that the company, about the
FIRST Of the year, declared dividend Of
$4,000 or 100 per cent, on the paid up
stock. The stockholders could have had
cash, but nearly al used the dividends to :
take up additional stock. The time for
filing the annual statement for 1881 ex-
pired before II was dled, and II is said that
the trustees may be considered individually"
liable for the debts Of the corporation.
In February circulars were widely dis
tributed, offering the stock OF the company
at par, but with inducements in the way
OF lower rates to stockholders on books
published. Bradstreets report OF April 26th
said: 1.-THE want Of adequate capital for 10
large business has been frequently ac-
knowledged by Mr.. Alden, and many In
the paper trade would be better satisfied II
he would present clear statement OF ai-
fairs when seeking TO buy on time. In the
absence OF such statement there Is feeling
OF uncertainty as To the ability Of the Ex-
change TO continue the business successful
ly and pay obligations In full, especially In
the event OF any unforeseen depression In
trade or withdrawal Of It's present patron
age" The report oil November 10th said
ION the Sth inst there was sale OF mis-
cellaneous publications Of the Exchange at
the Book Trade Saesrooms, at which there
were exposed for sale stock amounting, at
list prices, to about Sl5O,0OO; the sale real
iEed about S74000, and nearly all Of this
went, 1t Is supposed 10 Mt. George A.
IIeavitt for advances made. II Is now said
that their line Of credit has been material
ly lessened during the past six months,
and they have been somewhat Crainped TO
meet payments. The trustees resolved 10
issue bonds to the amount not exceeding
$4,000, and on the 18th inst, It Is said,
filed consent OF two.thirds OF the stockhold.
ers 10 mortgage, and at the same time filed
q chattel mortgage for $4,000 in favor Of
7. Tracey, who, II is believed, Is identified
with the company"
Mr.. Alden said yesterday that how the
business would 60 on would depend on
the receiver. 1t was probable that the
creditors would make some arrangement
to 90 ahead, as II was 10 their own inter.
ests, and all had expressed their willing.
ness, as far as heard from, for q contintia.
ton Of the business. At any rate, the
Literary Revolution would 10 ahead. The
sales this year had amounted to nearly
1000, the pay.rollS Of employees were
from. $500 10 $1,000 per week, and the
number averaged during the year about
800. The letters daily received ranged
from 1900 to $500, and over 1900 had
been received In one day. They had the
largest private book binding establishment
in the United States Concerning the re.
cent sale oil books, he said that 100000 vol.
times had been sold, Weighing over 100
tons and measuring over 90 cords, They
realized about $4,000, which went 10 pay
debts In the usual way. lie also indotse;i
the following points
The Sl20,000 Chattel was given 10 float
bonds but very few were Issued; Il was
thought at the time that he could sell them
Tor cash, or use them 10 pay debts with, 80
as TO enable the company 10 continue, but
q few small creditors began suits, oppress.
i've proceedings which would tiecessilata
the forced sale Of all equitable assets at a
sacrifice; accordingly Il was thought best 10
submit to the appointment Of receiver, 60
that all creditors Could share alike.
Tamperins with Uneie Sans CouFt
Records.
ST.. Louts November 2s.--peter II. Scott,
ex-sherifF Of Peinisco county, Daniel Mum