The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1890-12-27
THE INSOLVENq ARGUS"
Clarke Unblushingly and
Under Oath ReciteS His
Mismanagement.
run AT A LOSS FOR TWO YEARS.
utJ Liabilities Over One Hundred
" Thousand Dollars and Its
Assets Practically
Old Iron.
Two RECEIVERS FOR 1T.


es>eiver foi the me cribund Argus Company
ime up before Chancellor Mct5ill this
: .orning. Mr.. Flavel McGee, OF Bedle.
.Iuirheid, MCGEE g. Bedle. Jr., opened
the matter to the Court.
'1f your Honor pleases," he said, II
II re prepared bill for Charles S. Clarke.
+ Jr.. a stock holder and creditor Of the
Argus Company. applying for receiver
Tor the company. Since the matter was
before the Court last Saturday. the
owners OF the building have taken out a
warrant for rent which understand viii |
be served today. The knowledge OF this
has practically wrecked the business Of
the company. Orders have ceased to
come in ..nd the only salvation for the
concern seems 10 be the appointment OF
receiver who will adjust matters in the
interests of all concerned"
Mr.. McGee then read the bill. 1t was
in the name OF Charles 5. Clarke, Jr.. a
stock holder and creditor of the Argus
Company, for and on behalf OF himself
and all other creditors who shall come in
and contribute to the expenses of the suit.
1t sets for thethe fact OF the incorporation
of the Argus Company on December 81,
1888 The total amount of the capital
stock was to be 900, divided into 800
shares of the par value of 500 each. OF
this capital sixty shares have been issued.
forty-nine to Charles s. Clarke, Jr., ten to
r. o. Babbitt. of Jersey City, and one TO
Harvey Beecroft, OF New York. The prop
erty of the company consists OF pri nting
presses, cutters, type, RACKS and other
cnattels necessary to a plant for the busi-
ness ol publishing a newspaper and doing
generl printing, but the company does
not oj any real estate.
THE COMPANY INsOLvENT.
Ths the bill goes on to say THE said
comp ny has become insolvent, and It's
assets do not equal its liabilities, and its
assets consist OF the said chattels, aud
sundry book accounts and bills receiv-
able. not exceeding in the whole the sum
|Aof $50 co.,"
The liabilities of the company are then
Ilset forth in this order:-First, two mort
kgages on the goods and chattels and fran
Ichises of the said corporation. one to Noah
thurman, late of South Amboy, now de-
ceased, to secure SIS. 900, part of the
|purchase money of said chattels. which
Emorfgage was dated January Z, 1889.
Made payable. 5000 in one year from the
Edate thereof, 50, 900 in two years from the
tdate thereof, and the balance in three
/'years with six per cent. interest, payable
Esernf2anually. or IN case there should
be any judgments or attachments against
the company the whole principal was to
become Immediately due. The first in
stalments OF the principal money is due
on this mortgage, together with interest
from July z, 1889. This is the mortgage
which the wife of Charles s. Clarke, Jr.,
who is a daughter of Mr.. Furman, as
sumed as a portion of her share of her
fathers estate when the executors began
n suit to foreclose 1t some time ago.
The second mortgage was made The
same day the first was, and was 20 VIII
liam w. and Horace FarrieF. IL was for
SIS, GOO. and made payable III i've years
with six per cent interest. Seven hun
dred and fifty dollars was to be paid on
January 80 1889; 5000 on March 15 1859,
and 81 600 at the expiration of each four
months thereafter until three years from
its date, after which s., 900 at least was TO
be paid at the expiration OF each succeed
ing four months. Nothing has been paid
on account of principal and interest on
this mortgage except $4,000
$50 900 OF VENDORS LIENS.
IN ado to these the bill shows that
there at aaims on conditional contracts
Of sale OF chattals covered by the above
mortgages, amounting to about 10000,
ali Of which have been assigned TO David
H. McCrea- The Donnell Manufactur-
ing Company, of Chicago. holds
a Judgment against the company
for 1926. obtained in the spring of this
year II. Fl. Latham, of Chicago. has
also n Judgment for $500 and S. Collins,
Son & Co, of New York. have one for
$500 Interest and costs are also due on
these judgments. The bill further saws
that George p. Hill has brought suit for
5000 against the company in New. York
and has attached monies and credits OF
the company in that city.
Clarke claims that in addition to these
the company owes him 8, 500 salary as
editor and manager of the company and
that over s.. 500 are owed Dy the company
on accounts and bills payable, and $1,000
for wages, making n total indebtedness
of upwards OF 100000
Clarke then claims that all the chattels
Of the said corporation could. In his
Judgment, be put in new for $4,000 and
are not worth even at private sale that
sum, and much less than that sum at
public sale, aud tha5 he believes that the
total assets of said corporation do not
equal $4,000.
The said company has on hand, Clarke
declares, 50 or 81 in cash and the claims
outstanding, good. bad and Indifferent.
in favor of the company amount to SoOC
or S7OO and there are no other assets that
he can recall. The Judgments against
the company were obtained, he relates,
because the company had not funds 10
pay the claims The present officers OF
the company are Harvey Beecroft, presi.
dent, and Charles s. Clarke, Jr., secre.
rary. treasurer and manager. and the SAID
Beecroft. Clarke and Robert o. Baobitt
are the directors.
Clarke says that the company has been
carrying on business during the past tw Q
years at loss to its stockholders. and
that iIs business cannot be conducted
SO as to enable said corporation
to pay its debts or carry on It's
business with profit TO its stockholders
and that further prosecution by said
company of its business would necessarily
tend to the sacrifice. injury and deprecia-
rlon of the rights of its stockholders and
creditors. The bill closes with the for
mai prayer for a receiver.
All these facts are sworn to by Charles
s. Clark, Jr., In afiidayits attached to the
bill.
SURPRISE AT AN HONEST STATEMENT.
When Mr.. MCGEE had finished reading
the bill Mr.. Potts arose aud said
.'I am glad to see that at last a state
ment has been brought forth by Mr.
Clarke which Is something near tine
truth. As TO the second mortgage. all
we want is some one appointed re-
ceiyer who wilt guard the interest
OF an parties We know thai
persons indebted to the concern have beer
request ed 10 pay their Indebtedness to the
Second National Bank. We are prepared,
IL ueerssary, to look after the nrst mort
ThY chancellor asked II the gentlemen
would suggest a name for receiver. Mr..
U,~@s a ~al lar n Mr.