The midland journal. (Rising Sun, Md.) 1885-1947, 1892-03-25
The Mccullough Iron Company
Files an Answer.

The mccullough Iron Company
Files an Answer.
The Mccullough Iron Company,
by Messrs Bernard Carter. Robert.
G. Thackery and A. T. Freddy. its
attorneys, fled an answer on Monday
in the United States Circuit Court,
in Baltimore to the bill ofthe Fidelity
Insurance, Trust and Safe Deposit
Company of Philadelphia. trustee
under the will of Deiaplaine Nc
Daniel, 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 fIed at the instigation
OF Joseph L. Mcdaniel, president Of
the iron company, against the wishes
and protest Of the large majority of
stockholders, and which majority, he
knew, were intending to elect a sue
cessor in his place in April 1892.
The iron company, it is stated, has
always been flourishiDg and prosper.
Gus, has distributed in dividends
amongst its stockholders 81 ,O75, 900,
and has always promptly met its
obligations.
Ii contemplated changes are made
or II the price of steel billets and
sheets advances, or if the present
condition ofthe iron market improves
there is no reason why the mills
should not be operated at substan-.
tial profit. As matter of fact, the
general business of the company last
year was operated at profit. and
the reason that there is an apparent
loss of $4,000 was caused by the fact
that SS2 900 was expended in better
ments, improvements. new boilers
and permanent buildings, and ST, 800
of this was charged directly against
the profits of the works.
The answer denies that the Nc
Cullough Iron Company is not in a
position to compete with other cor
porations manufacturing the same
line of goods, and that is not now
conducted with success or benefit to
its stockholders the business for
which it was corporated. On the
contrary, it is averred that the
Minquas Mill alone made manu-
featuring profit $2l, 900 last year, and
that the North East and Octoraro
Mills made manufacturing profit of
w 900 and that the apparent loss of
$4,000 to the total business for the
year was caused by the expenditures
for the permanent improvements
above named. Dividends amounting
to $3O,225 have also been declared
since 1885 upon the stock of the Nc
Daniel & Harvey Company sub
sidiary company as herein after
stated in the seventh paragraph Of
this answer. And the alterations
and changes which are in contem-
plation of construction will result in
still further increasing the profitable
business of this company.
The defendant AYERS that the state
ment of the complainant as to the
reduction of the surplus, and also
the statement as TO this of the said
Joseph L. Mcdaniel. upon 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 1883 by credit from the
Mcdaniel 6 Harvey Company Of
$l28 900, aud surplus thus created,
now objects to a similar credit made
upon precisely the same basis. In
the next place, the period of time
taken is far too short al interval to
determine the nature of the general
prosperity of the company. Thus, in
1873 the company was without any
surplus and owed 100000 exclusive
of its capital stock. and had this
complainant taken the year 1878 as a
starting point for its computation
whereby to determine the present
condition of the company, the result
would have been shown that this de-
PENDANT is to-day over $500, 900 better
off than it was at that date. and that
it has, in addition. enormously in
creased it's business, and has further
paid and distributed amongst its
stockholders $325,00O as dividends
since that date.
The defendant company put q
valuation on its mill property Of
$3.50, GIT; stock on hand, $13l 1853,
and bills receivable, &C.. $50, 7lO 50;
a total of $642, 473 SO, and an excess
over liabilities of $524.454.44. The
capital stock of the company is $3.50,
900; therefore, it is claimed there is
an actual surplus. after payment in
full of the capital stock, of $74,454.-
Al, and that the company is no: in.
solvent.