Morning journal and courier., 1891-08-05
OLD COLONY prsrrLLxRx.


 over Five Hundred Thousand DoI.
 lars Due the United Growers and the Government - New Haven Bondsmen-Contradfctory Rumors as te Insolvency.
 The Old Colony Distillery company has suspended and business will close up next Saturday. The request for the suspension was yesterday forwarded to Collector Hutchinson and the required order for the close was received. By this process the distillery company will be enabled to save payment of the regular government tax of s1 400 per day which wouldbe required if the distillery were closed without the col lector's permission.
 The amount of the Old Colony company's indebtedness cannot be ascertained, but the United Growers claim or S150, 900 or the various items of the local feed dealers, for all of which attachments have been made, are by no means the heaviest liabili- ties. The taxes which the company owes to the government, and which it or it's bondsmen will eventually have to pay. amount to about S360, 0,000 This makes the known liabilities rise to more than $520, 900. Against this indebtedness is the distillery plant and the stock of spirits now on hand.
 The plant as originally purchased by the company, cost only a few thousand dollars, but expensive distilling machinery has since been introduced, and the prop erty is now a valuable one, though not sufficient to pay all claims.
 In addition to the real estate, however, there ispa stock of 400, 900 gallons of whis- ky and rum in the bonded warehouse. This will be held by the government until the tax of ninety cents gallon is paid on it. Therefore, supposing the 400, 900 gal Ions to be still the property of the Old Colony company, the stock cannot be re- verted to the use of the ordinary creditors of the company until the taxes of S360, 600 are paid to the government.
 It is not believed that the liquor in the the company's warehouse can bring over forty cents gallon in addition to the tax of ninety cents gallon still due to the government. Some experts estimate the stored whisky as worth only twenty cents gallon. Figuring at forty cents gallon, however, the stock in the Old Colony ware house on Grand avenue would be worth about S160, ,000. At twenty cents a gallon it would be worth SS0, GOO These figures represent the value above the government taxes and with the taxes included the stock would be worth S520, 900 at forty cents gallon or $40. GOO at twenty cents per gallon. At the higher valuation the assets of the company will just meet the liabilities without counting in the real estate. Under the lower rate there would be deficiency of SS0, 900.
 There are about sixty New Haven citi- zens who are bondsmen for the company in amounts varying from $25, 900 to S50,- 900 each. These bondsmen are responsi- ble to the government for the $50 GOO of taxes now due, and unless the taxes are paid within three years from the date of each bond or the collector succeeds in ob- taining the money by the disposal of the stock, they will be compelled to pay the money. Among the bondsmen are Maier Zunder, Thompson S Belden, Joseph Kai- ser, the clothier: Tailor Alphonso Thill of Temple street; Thomas w. Corbett. Emil Schonberger and c. w Watsrhouse. Some of these were seen last night They did not consider that there was any spe- cial cause for alarm. Each month the distillers have had to get two or three new bondsmen on putting the months product into the bonded warehouse. These bondsmen are secure while the stock of spirits is sufficient to pay the gov ernment taxes, unless something unfore- seen happens, but that there is possibility of loss is indicated by the fact that the government requires the bonds. Some of the bondsmen have consulted lawyers.
 The security of the bondsmen lies prin- cipally in the fact that the spirits cannot legally be removed by any process or un- der any circumstances until the taxes are paid.
 The County National bank, the Yale Ma tional bank, the First National bank and all the other banks of this city which have taken the company's papers are stated to be amply secured by warehouse receipts.
 It is asserted by those we'll qualified to know that the officers of the Old Colony company will ask for the appointment of a trustee and will put the concern into insolvency.
 Many persons think that Messrs. Wool ner and Curiel, the chief packers of the concern, will advance sufficient funds to pay of the debts of the company and en- able the distillery to start up anew.