New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-12-01
A COOPERATIVE FAILURE.
THE COLLAPSE OF scnENcK's COMPANY,
WEALTHY TRUSTEES AND STOCKHOLDERS DID

WEALTHY TRUSTEES AND STOCKHOLDERS DID
NOT SAVE 1T FROM DISASTER.
Over 1000 stockholders IN the Consumers Coal
Company, cooperative doing business in this
city for the last eight years, will have pay the
regular schedule price for fuel this winter unless they
manage In some way to save the company from tie
creditors. On Friday the company suspenfed-llabnl.
ties about $4,000, nominal assets about $4,000
Seven judgments entered against II In favor u
Mrs H. c. schenck wife OF the president. c. stewart
schenc SI2, $50, and In favor Of NJ Briggs for
5000 Mrs. scbenck had been lending the company
money from time time help Il along, rs business
had fallen off considerably owing 10 serious Illness
OF the president and the falling down Of It's pier ~
East Forty third st. The other creditors are mostly
wholesale cOaldealers.
The Consumers Coal Company-not llmited-wss
organized on December q. 1891, to supply consImefs
with good coal at a reasonable price and give fi1
weight The price Of the shares was 81 each and the
authorized capital stock S5o690o. C. Stewart schcnck
the originator OF the concern, became rs president
Thomas Peasa its secretary, and Frederick A. savye,
It's treasurer II. G. Manning was made general agent
and T. C. Oakley general manager AMI there vera
thirteen trustees follows: John III. sherwood OF be
Fifth Avenue Bank; Henry 4. Oakley, president Of
the Howard Insurance Company; W. s. Nicholas
banker No. 81 WalLst; C. stewart schenck o,
schcnck & Co.. merchants Frederick Taylor cashier Of
the Continental National Bank; John T. Ktebiuc
treasurer of the Eagle Tube Company; l. p seubsns
OF No. 60 Wiam-st.: Thomas Peafsall Of " /
De Rivera & Co., NO ia pearls. Paul COster Of
No. 80 Broadway; Frederick a. sawyer secretary q,
tho Clyde steamship Company T. c. Oakley, Of No.
% West Thirty iirst-st; H. c. Dart, OF HOLSTER Co.
No 80 Eroad.st., and Charles G.. Dodge, Of Doigs
Potter & Co.. bankers. Among other influential back.
ers of the company were General Daniel T. slck,es
Henry B. Dexter. pres dent Of the American News
COMPANY. and Samuel y. Hyde. General sckes ~
Gently withdrew because dissatisfied with Mr
Schenck's business methods
The company started on its career with expensive
Offices and was soon obliged 10 rcrench and re-
form. The capital stock was reduced in July, 1884
to s135. 300, of which $4,000 was paid in cash, aud
100000 issued for property at Forty thrst and Eas,
River and at One hundred-and seveathst and Third
ave II soon became known as schenck's Company
and among coal men was never called by any other
name. Many prominent merchants, bankers brokers
and commission dealers were among the
stockholders The annual sales Of coal
amounted to about 900 tons. The outside
public bought at the schedule price which is usually
determined by a combination OF the retail dealers
in the city, but the stockholders were favored with
a discount OF per cent. The company bought for
cash and sold on time, a system which enabled II
gradually fall behind. Many Of its best customers
were rich men, and rich men are proyerbialy
indifferent about paying small bills, President schenck
found collections exceedingly tr0uDlesOhle
In order to raise the wind' he devised 9n
of profit certificate plan, which was ingenious II not
astonishingly successful. lie must have gotten the
idea from the gold and silver certificates of the Cnied
states Treasury Each certificate entitled the holder
TO one ton Of coal COCO pounds and was good
for three months. at the expiration 2I Waich 2 et4o
IL was expected 10 be rode emed at the once Of me
compaDy. Buyers Of certificates were tqNlel OF
course 10 pay ash in consideration OF WAich ias0i
they received dscOun Of II per cent on the
scheduled price OF the coal. GOou many ceTtHo@0s
were sold and used.
The Lincoln National Bank was for several years
the depository OF the company and rs paper va
generously treated there I'll personalities arose BE-.
tween Henry g. Dexter. Of Mr. schnecXs hackers:
and gentleman associated with lin on The boal
trouble And there We're other annoyances 10 Wheh
Mr. Scbenck refers with mucn bitterness OF spuil.
He not only sacrificed his wife, but. as Attenlus
Ward was willing 10 do. sacrificed his wfes raiopt
10 the war One of his most relentless Prosecutors
he declares, is Mrs. Hicks Lord his cousin As
hands of 5. /. NJ. Barlow. and Mr. Barlow. IN tIe
conscientious discharge OF his duty, gave Mt SchehcA
rest. -, 49,
samuel b. Adler coal dealer. recently sued the
comnany for Sl2 900, and got the money, win COSTS
and still more recently II. l.. Herbert 81 CO., Ie,an
Schenc reaIiated by suing Herbert a CO. for S2oOOU
damages charging the firm with circulating reports
derOgaoIy 10 the interests OF the Consumers to@
Company. , -.
ton. having undergone an unsuccessful surgcS
operation. For three weeks he has been IN Ded
When he RECEIVERS meeting Of creditors VIII be
held with view TO arranging Tor resumption OF
business. The company occupies excellent offices
at No Is Broadway.