New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-04-20
MORE DEBTS THAN ASSETS.
ENGLISH INVESTORS THE PRINCIPAL
LOSERS.
LENDER INSULATING ooMPANY-wHERE
Is ITS PREeIpENrY

QUEER MANAGEMENT OF THE SUSPENDED oALr
LENDER INSULATING ooMpANY-wHERE
Is IT'S PREsIDENTi
| The Calender Insulating and WaterprooHng
Company Of this city engaged in the manufacture
OF insulated wire and waterproof materials for the
protection of electrical appliances, with factory
at Harrison, N. j., has failed so completely that
even its attorneys unable TO extend hopes that
tho creditors will realize much II anything on
their claims. Until the completion of the exam
nation Of the books Of the company, which is
now in progress at the Office of Morgan e.
| Worthington, No. 90 Wall-st, the company's
counsel, the exact amount OF the liabilities and
assets cannot be stated but there are indications
that the former will exceed half million dollars.
while the assets will be triding in comparison Mr.
Morgan said yesterday that large sums were ap-
parentiy unaoooanted for in the books but that
there were indications of defalcation He
also admitted that the company's methods in many
respects were Of decidedly questionable charac-
ter. The failure, he said, evidently due TO
mismanagement. The president and treasurer of
the company, William M. CALENDER, is now said to
| be in England, and George NJ Calender, the sec
retary, who lives in Orange, N. j., will start for
London to-day to try to arrange affairs with the
| English creditors who hold o majority of the
claims against the company The offices Of the
| company in the Telephone Building, No. 1S Cort-
hndt-st, were closed yesterday.
The company was organized four years ago
with capital Of $780, 900. Immediately after
Its incorporation the full amount of the capital
stock and S40o, 900 debenture bonds bearing per
cent interest were issued for the purchase of var
Gus patents ninsulated cables. This left the COM
pany at the outset without working capital and the
patentees gave back to the company $500, 900 Of
the debenture bonds and q small part of the COM
mon stock, on which to realize funds for current
expenses. Experiments during the first year used
up $4,000 OF the sum thus realized, which was
charged to the profit and loss account OF the re-
naming s150,OOo realized from the sale of
stock and bonds $4,000 was never collected.
Ihls amount represented balance due from Charles
G Franczyn on purchase of $50, 900 Of the bonds
Ihe working capital then was sl35, ,O0O Of which
$4,000 was used in the purchase Of the factory
at Harrison, N. j.. and the machinery.
WHY WE'RE THESE BOND IsSUED7
In September, 1888, the company gave a mort
gage Of 100000 TO the Fidelity Trust Company
OF Newark, to secure equal sum of first mort
gage bonds Twenty-Five thousand dollars In cash
was realized in England on these mortgage bonds,
and the balance Of s75 900 in bonds was deposited
as collateral for the payment Of loans and other
obligations 70 the amount OF about S55, 1000 At
this time the eompany's obligations far exceeded
its earning capacity and Mr.. Morgan would not
say whether the bonds were issued TO secure loans
made prior to the date Of issue not, nor would
he say from whom the money was obtained.
William o. Calender, father of the officers of
the New-York company, is president OF a similar
company in London, and the English corporation
Is believed 70 be the parent OF the one here At
any rate the per cent interest on the debenture
bondh, amounting 20 S24, 900 year, was regularly
paid to the English company, which was on the
books the holder Of the entire issue Of bonds but
the books do not show how they were acquired
from the New York company and the other hold
ers, nor what disposition was made OF the money
realized.
NJ Morgan freely explained the present con-
dition Of the company yesterday I'VE have dis
covered that the companys system of bookkeep-
Ing" he said, was very bad and that it's manage
nent was loose and careless, but there Is no evil
dence as yet OF n defalcation. A full meeting
Of the creditors was held at the Astor House
These creditors represented trade debts to the
amount OF $4,000 out Of an aggregate in this
country Of about S40,0 900. l stated 20 the credi-
tors that the company was seriously embarrassed
Messrs. Burdick, Lttlejohn, Fuller. Brundage and
Crosby, representing the Ansonia Brass and Cop
per Cempan& Fuller Brothers & Co, Ross, Turner
Providence, and DR.. Pierce, Of patent
medicine renown. and other creditors, to
take measures for the protection Of the interests
the largest. single claim against the com
pany, about. 10000 Application was made
for the appointment OF receiver, and John L
Burdiok appointed. At the same time similar
proceedings were begun in Newark and the Chan
cellor appointed Oscar Keen receiver Mr.. Keen,
however, decided yesterday not to serve"
MISUNDERSTANDING THEIR CONDITION.
Mr.. Morgan said that the cOmpany's officers
had borrowed money from various people, paying
enormously high rates for accommodation, and
there was no doubt that they had represented the
company TO be in sound financial condition in
order TO obtain credit when they knew that it
was nsolvent The debts OF the company here
are for loans and merchandise II is not thought
that any considerable amount Of the stock or
bonds was sold in the United States, and there
rs good authority for the statement that the entire
issue Of both stock and bonds was made 10 Will
lam o. Calender, OF London. William H. Guion
and Charles @. Francllyn 1oated large blocks of
the stock in London, prior to their financial
embarrassment.
The companys visible assets consist of the
factory in Harrison, about $4,000 in material
the patents originally purchased. Against this
will be placed all outstanding obligations, includ-
ing stock and bonds, amounting TO 81 900, 600.
How much OF the latter has been foated does not
appear on the books. Judgment has been entered
against William o. and William NJ. Calender for
s12,077 in favor Of H. G. Parsons
While IL is generally believed that William NJ.
Calender has been in England for several weeks,
yet according to the statement of james NJ. Nell
son, q clerk Of the company he is in New-Jersey.
He told Tribune reporter yesterday that he saw
Mr.. Calender on last Monday at his home, No.
1 90 Walnutst, East Orange