Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1892-03-24
PRESIDENT M'DANIEL ATTACKED

Answer of the Mccullough Iron Com
pany To the Request for the Appoint
ment of "a Receipcr--A Claim Of Profit
able Business and Thorough solvency.
The Mccullough Iron Company, by
Messrs. Bernard Carter, Robert q.
Thackery and A. I. Frecdlcy. its attor-
neys, filed All answer Monday in the
United States circuit court in Baltimore to
the bill Of the Fidelity Insurance, Trust
and Safe Deposit Company of Phladel-
phia, trustee under the will of Delaplnine
Mcdaniel, in which the complainant asked
for the appointment of a receiver to wind
up the affairs of the company. The
answer alleges that the bill was filed al the
instigation of Joseph l.. Mcdaniel, presi-
dent of the iron company, against the
wishes and protest of the large majority of
stockholders, and which majority, he
knew, were intending to eject Il successor
pany, il is stated, has always been flourish
ing and prosperous, has distributed in
dividends amongst its stockholders 81, 075-
600, and has always promptly met its obi
cations.
If contemplated changes are made or if
the price Of steel bllets and sheets adj
vanccs, or il the present condition of the
iron market improves, there is no reason
why the mills should not be operated at a
substantial profit. As a matter of fact.
the general business of the company last
year was operated at a profit, and the
reason that there is an apparent loss of
$1,000 was caused by the fact that 532O00
was expended in bettcrmenis, improve
mcntS, new boilers and permanent build
| ings, and $1,000 Of this was charged di-
| rcctly against the profits of the works.
The answer denies that the Mccullough
| iron Company Is not III Il position to COM
| pete with other corporations manuiactur-
ing the same line Of goods, and that is not
| now conducted with success or benefit To
| its stockholders the business for which il
was Incorporated. ON the contrary, il is
averrcd that the Minquas Mill alone made
a manufacturing profit of III, COO last year,
and that the North East and 0c.orara mills
| made manufacturing profit of 5000
and that the apparent loss Of $1,000 10 the
| total business Tor the year was caused by
the expenditures Tor the permanent i'm.
| proycments above named Dividends
| amounting to s30,2 2j have also been de
clarcd since 1885 upon the stock Of the
Mcdaniel ~ Harvey Company, sub
sidiary company, as hereinafter stated in
the seventh paragraph of this answer
And the alterations and changes which are
in contemplation Of construction will
result in still further increasing the profit
| able business of this company.
| The defendant AYERS that the statement
| of the mplainant as to the reduction OF
| the surplus, and also the statement as tf
| this of the said Joseph l.. Mcdaniel. upor
| which the bill is founded, are misleading
In the first place, the surplus upon which
| the complainant SO greatly relies was
created in great part in the year 1885 by d
| credit from the Mcdaniel & Harvey Com
| pany Of sl2s,9D0, and the complainant
while relying upon this surplus thu.
created, now objects To n similar credit
made upon precisely the same basis. III
the next place, the period OF timctaken is
Tar too short an interval to determine the
nature of the general prosperity Of til,
company. Thus, i'll 1875 the company wn,
| without any surplus and owed $4,000 cx
| elusive of its capital stock, and had thi.
| complainant taken the year 1875 as q start
ing point for its computation whereby Il
| Determine the present condition Of tnt
company, the result would have shown
that this defendant is to-day over $500 O0t
better off than il was at that date, and tina
il has, in addition, enormously increaset
its business, and has further paid and dis
tributed amongst it's stockholders 49,, UUt
as dividends since that date.
The defendant company put valuation
OH its mill property of S4bO6l7; stock on
hand, Sl3l ,146.l3 and bill receivable, &c.
500, 7l0.S5; Il total Of SGi2 473.9S. and an ex
cess over Liabilities of 1921, i5i4i. Tn,
capital stock of the company is $3.50 600
therefore, 1t is claimed there is an actua
surplus, after payment in full of tn,
capital stock, OF S7l.45i4l, and that tn,
company is not insolvent.