The aegis & intelligencer. [volume] (Bel Air, Md.) 1864-1923, 1885-04-10
The Failure of the Red Seal Packing
Association fA .-L..

The Failure of the Red Seal Packing
Association h .--..
The failure of the Northern Hartford Pack.
ing Association continues to be the theme
of conversation in the upper part of Hartford
county and the lower end of York county
The operations of the association were wide
spread, and many farmers, laborers and store
keepers, not members, have suffered heavy
losses by its collapse. 1t was organized in
1883, with about thirty-one members, each
of whom, upon joining, gave note for the
capital stock issued to him, the number of
shares being in proportion to the capacity of
his canning factory. These notes were in
tended to be used, ifneeded, to provide funds
with which TO carry on the business of
the association. A President, Treasurer,
Secretary and Directors were elected by the
members. The directors appointed an in-
spector of canneries, whose duty it was TO
see that the goods were properly packed. A
common label and brand, called 1.-THE Red
Seal" were adopted, and it was hoped that
demand could be created for the Red Seal
goods, which would make them standard arti-
Giles in tine markets, thereby securing better
prices than could be obtained by individual
members, who would also be relieved of the
trouble of selling their goods. A great saw
ing was also hoped for in buying cans, &c.
in large quantities, by the directors. The
Red Seal brand was extensively advertised
and broker was employed to travel through
the West and introduce the goods.
By the terms of membership all sales were
to be made through the directors, and the
members were required to ship their goods
whenever and wherever ordered
A comparatively small portion of the pack
of 1883 seems to have been sold during that
season, dividend of20 cents case being
all that was declared for that year. The
members again packed in 1884. By this time
many of them, having realized very little for
two years. work, were indebted to the banks
for loans, to their neighbors for corn and to-
matoes, to their hands for labor, and to store
keepers for cashing their checks. All this
time the goods were held by the association
for higher prices. The market, however,
seems to have been overstocked and the ad
vance did not come After hoping against
hope, the directors lately determined to SELL
and Messrs. Smith & Wicks, canmakers, of
Baltimore, became the purchasers of all the
Red Seal goods, supposed to amount to
100000 cases of corn and 10000 cases
of tomatoes, all of which were either in ware
houses under control of the directors or still
in the hands of the packers.
The goods, however, could not be found,
and some of the members began to look into
affairs. Their examination, cursory as it was
created the greatest CONSERVATION. 1t was
found that the association was largely
indebted to Smith & Wicks for cans, SC, and
further investigation revealed a mixed and
unfortunate condition of affairs. All the Red
Seal goods that were known to be held in the
county, as collateral for loans or in the hands
of the members, were not sufficient to satisfy
Messrs Smith 81 Wicks claim. Besides their
individual liabilities for material, labor, &C.,
the members feared they would be called
upon to make up the deficiency, by assess
ment upon the notes they gave for stock, the
deficiency being roughly estimated ut from
$4,000 to 100000. The outlook was APP
palling and no cheering ray of light has yet
been thrown into the gloom.
The stockholders at a recent meeting ap-
pointed committee TO procure competent,
disinterested expert accountant TO examine
the affairs of the concern and try 10
bring order out of the chaos that seems to
exist in the books and accounts. 1t is hoped
that if this is done promptly more can be
saved out of the wreck than was at first
thought would be the case, and the accounts
of the individual members could then be-
properly and equilably adjusted. The men,
bers say that although their losses are heavy,
iftheir creditors will be lenient with them
they can recover from the blow and pay off
their Indebtedness Otherwise, if compelled
to sacrifice their property, they will be ruin.
ed.
The distress caused by this failure in Har
ford county is unparalleled in her history The
feeling is intense, but in the absence of any
accurate knowledge of the state of affairs,
opinions differ as to where the responsibility
belongs. The officers of the association had
the implicit confidence of the members, and
no charge is made that any of them have ap-
piled the funds of the association to their own
use. Their friends assert that much of the
shortage in goods is owing to the fact that
some of the members sold them on their own
account, in violation of their agreement with
their fellow members.
Several of the members have made assign.
menis, and great deal of intricate litigation
has resulted A firm of Baltimore creditors,
Messrs. A. Schultz & Co., have applied to the
court, through their counsel, Mr.. S. A. Will
liams, for the appointment of II receiver TO
straighten out the complicated affairs of the
association, look up its assets, and make
complete settlement An order has been
passed by Judge Walters requiring the asso-
citation, on or before the 18th instant, to show
cause why receiver should not be appoint
ed.
The Confederate Relief BaZar