Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1892-03-10
A BIG CONCERN INVOLVED.
Receivers Demanded for the Nc
Culiough Iron Company.

rhe Compiainants Assert That 1t ia Tn
solvent and Make Charges Against tn.
Management--The Works of the Con
Germ.
Tuesdays Baltimore american has tn,
following:
The Fidelity Insurance, Trust ant
Safe Deposit Company, trustee undel
the will of Delaplaine Mcdaniel, bv s
Teackie Wallis, Henry G. Kennard and
Stephenson A. Williams, ATTORNEYS, flied
Dill in the United States circuit court
yesterday against the Mccullough Iron
Company asking for an injunction tc
restrain the further prosecution by its
officers or agents of the business OF the
company, or In any manner disposing OF
Its property, and for receiver to wind
up its affairs.
The plaintiff, which as executor re.
presents 1,002 shares Of stock Of The Nc.
Cgllough Iron Company, alleges its in.
solVency. The company was incor-
porated in Maryland on February 10th,
$3.50, and subsequently charter was
also obtained in Delaware under the
same name, and the two companies
united. The capital stock amounted 10
S4oO,OOO, and the principal place of
business is in North East, Cecil county,
Nd, with principal office in Phiadel-
phia.
1t is alleged that prior to the death of
Delaplaine Mcdaniel the business of
the company was prosperous, and that
on January l, 1885, the books showed a
surplus of assets over all liabilities of
$20S,7SS.36; but that since his death il
mas not been prosperous; that sheet steel
has taken the place to large entent of
sheet iron, and that there is now no de-
imand for the sheet iron manufactured
by the company, except at price below
the cost OF manufacture, and complain
ant AYERS that between January 1 1885,
ana January l, 1893, the apparent sur
Plus OF the company has been reduced
to Sl26,llS,65, and that since January
], 1899, other losses to the surplus have
occurred, rendering the company in
solvent,
The complainant also AYERS that the
true condition of the company is about
Us follows Assets, as per balance sheet,
500 ,0l9.25, from which should be de-
Quoted amount of false credit from
Mcdaniel Il Harvey Company, S4s,-
4oo.54; oYer-yaiuation of mill property,
1856 662.2I; generalization of stock,
Sso,220,23; true value of assets, $685.
TIDAL; liabilities, 1868, 0i954; excess Of
liabilities over assets, $275, 30O.13.
The complainant AYERS that the
enormous loss in seven years business
has been caused in part by gross dere-
LECTION OF duty on the part Of the direc-
tors, who, well knowing that sheet steel
had superseded sheet iron, refused to
make improvements in the mills and
machinery; created new and unneces-
sary officers, and fraudulently and un-
lawfully increased the salaries of officers
70 the extent Of $500 year; also dis
charged a competent manager and re-
engaged an Incompetent manager of one
OF It's mills, DC, &C., and we'll knowing
the capital of the company was i'm,
paired, paid out in dividends $4,000
since January LIST, 1885.
The mills of. the company are as fol.
lows "AIinquasn Wilmington, Del. y
North East" "Charbon," .Charbon
Farm all three at North East "West
Amwell," "Elktonp and "Octorara. .
Rowlandsyille. These mills. on lie
company's books, are valued at $780,
ios..t; the true value, it is claimed, is
Sl'o,5o0 The stock on hand, by the
books, is placed at $131 ,146.1 3; true
value, as claimed, is $104,916.00. The
court, Judge Bond, passed an order re-
curing the defendant to show cause, on
or before April 4th, 1892, why the re-
ceiver, &c, should not be appointed.
An injunction was granted, in so far as
any alteration of the books, &c, was
concerned.
LOCAL STATEMENT.
1t was stated in this city on Tuesday
that the fight is between the McDaniels
on the one side and the McCnlloughs
and the Haryeys on the other. They have
been lighting for years. A year ago the
McCulloughs and the McDaniels Joined
forces and busted the Haryeys from tbe
management. This year the McCul.
loughs have thrown their stock with the
Harveys and IL is supposed that at the
annual meeting next month the Nc
Daniels VIII be ousted. The application
In the bill claims that the company is
lnsolvent. II this is correct il will un-
doubtedly drag with it the Mcdaniel
and Harvey Company Of philadelphia,
whose stock is owned by the same indi,
viduals. Nothing as yet have been de-
yeloped against the latter company.
The officers Of the Mccullough Iron
Company arc: President, j. J. Nc
Daniel; Vice-presidcnt, Enoch Nc
Cullonghi Treasurer Henry Whitley;
Secretary, j. w. Mccullough; Directors
y A. Harvey, George w. Mccullough,
Huxley Harvey, W. Irving Walker, j.
4. Mcdaniel, Enoch Mccullough, Henry
Whiteley and j. w, Mccullough. The
cause of the trouble is that the company
has not paid any dividends since the
accession Of J. l.. Mcdaniel to power.
Officers Of the Mcdaniel Il Harvey
Company are; President, j. l.. Nc.
Daniel Nicc-presidcnt, Enoch McC,ul-
Tough; Secretary, d. q. w. McCorkle.
Treasurer, Henry WhiIeley. The com,
pany claims 20 be worth $4,000.
The reason why the McCullourhs
have joined the lIaryeys this year, Il il
alleged, is that they are stockholders
but not office holders and do moi receive
salaries q dividends. 1t is generally
understood the company has hot made
any money for several years.
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LEUES.
Special torrespondcnce OF Gazette and journal
,LEwEs,. March sam orphans court sale