The sun., 1893-05-15
THE HERALD CORPORATION.
Mr. BEyNETr DhCrDES 70 CHIHGE
xHs FORM or MS OWNERSHIP.

holder, md Mr. Bennett TO Maintnin His
Crntroi-His Health Is Not Very Good.
James Gordon Bennett. proprietor" dis
appeared from tho head Of the editorial page
OF tho Ner York Herald last Saturday. This
change was msdo by Mr.. Bennett in anticipa-
tiou OF change in tho proprietorship OF tho
Herald Tho Herald has hitherto beon solely
tho property Of Mr.. Bennett II will soon be
owned by a corporation OF the stock OF which
Mr. bennett will hold almost all. Mr.. Jnhn
Townshend. the lawyer OF Mr. Bennett anu OF
Mr. Bvnnetrs fathc. before him. Is authority
for this Abatement. Mr.. Townshcnd said last
hight:
"Mr. bennett hns had In his head for two or
throe years the idea Of forming cornorat'oa
to run tho H,rdh He frs, contemplated 1t IN
1891 lie ha. put 1t of from time to time
until the present. His recent trir to tins coun-
try was made for number oi reasons. lie
desired to Inspect his now building Mt Thirty
nth street and broadway and to give personal
directions about Its completion. lie also
wanted to soe how the paper was running.
Lastly. hc came over to talk over his scheme
for tho formation OF u corporation.
Now. understand distinctly that ns yet moth
ing definite has been decided beyond tho fact
that the corporation will surely be formed. No
steps have as yet bcen takon save the nero
discussion OF the plan. Mr. bennett decided
10 take this step because the newspaper prop
erty. as n corporation. could bo much castor
disposed Of at his death as personal property
than as realty. IT could also. VI course, Do
easier disposed OF In such shape during his
life. II Is this alone that led Ny. bennett to
aocido on his present plan"
what will DO tho capital stock Of tho aor-
poration ?" was asked.
Speaking from my knowledge OF the mat
ter. l should SAY 1t would be about $1,000. 900.
Tho Ue,aM property is worth every cont OF
that and think that will DO the sum nnin 3D.
think the shares will be 500. making 10000
shares in Nil. Mr.. Bennett will hold at least
Sl,SOO.000 worth OF tho stock. or 1900
shares"
"wiu these 1000 sl,nrss be for sale? ?" was
asked.
They will not" said Mr.. Townshend. This
Is purely a personal transaction Of Mr.. Ben
nett's. There will be as few stockholders as
possible. We have not yet been able to 30 into
the matter thoroughly. As soon as Mr.. Ben
nett determined positively to have the corpora
ton he took his name OF tho editorial
page. think he acted perhaps precipitatoly.
There was no occasion for such haste. But
from what We have thus far learned we must
have at least three stockholders. II the COM
pany is incorporated under the amended gem
era law Of 1S4S there must be at least three
shareholders. II the company is Incorporated
under tho special or limited statute there must
be at least nine. Mr.. Bennett wants only three
the law will allow it 1t would be perfectly
legal for us to have as few as ton other stock
holders holding only one share each. so that
Mr.. Bennett can still hold $1,000. 900 worth Of
: capital stock OF s2.OO0.O00. Tit ia neces-
saly to have nine stockholders. I cannot tell
yop who they will be. II three stock holders
are required think that ono Of them will BE-
M Gardiner @. Howland."
win Mr.. John w. Mackay be a stock.
hoIdrr'
Nj. Macksy has no interest in tho Herald
at tho present timo. nor will he have any In
terest whatever. direct or Indirect. in the new
corporation. Mr.. Bennett 10 In no financial
difacuties. He does not need money. nor is
this new plan proposed that he may procure
more money without losing control OF the Her.
old and without mortgaging It. Mr.. Bennett is
richer to-day than he ever was He is worth
st least S4.50O. 900 clear OF his dc BITS. He
owes not over 100000. He. OF course. is the
trustee OF his sisters estate. which Is worth
about S1.OOO0o0. Some people might say
he owes this amount: but he has her property
to show for II. She is his largest creditor.
The Herald is not mortgngcd for one dollar.
There is no lien upon it nor does Mr..
Nackay or any ono else hold Mr.. Benefits
notes or any paper OF his that will enable them
to touch the Herald or get any hold upon it,
II Mr.. Bennett had wanted money he could
have got plenty OF 1t whom he WAS here with
out considering tho Hrraid. He has 125 acres
OF land in Westchoster county for which he
was offered s3'7. 500 last Thursday. or S2.7OO
an acre. Thon he has one-1unrter interest
In ! 900 acres OF land near by his 125 acres.
and this is worth ut least 100000. He has
forty-nine a"res at Fort Washington that he
refused SitS0.000 or $40. 600 an acre for last |
week. 1t has bcen said that he lost consider |
able money recently at Monte Carlo or some |
other place. gambling. This 10 untrue. Dir. |
bennett mover lost 500 at cards or games OF |
chance in his lifc"
Is it true that Mr.. 9ennetts health Is |
bedY"
Mr. Bennett has made his will" said 8ir.
Townshcnd. And this fact rem inds me TINT
he could not divide the Herald property at his
death so easily !! he did not merge 1t into a
corporation"
" DOES Mr. Bennett contemp plate dIvidin: I'D
the Herald property by his will2" asked the
Reporter.
he d"es,' snld Mr.. Townshend. 81 am not
AT liberty to say who will get it. His sister
wiz not get 1t all. nor will her children. James
Gprcon Bennett Bell and daughter get all
the remain !er. However. It should he dis
tipe'ly understood that II Mr.. Bennett were TO
ole now. his sister would be his only hair ot
law. by that mean that there are no other
heirs or persons entitled to "a share of his
estate In America. in France. or In any other
country" ''
Has Mr. BENEFITS health anything 10 do
With the formation Of the corporation :" ask.d
tho reporter. 0'
"One Of the advantages OF additional sto,r,-
holders will be that men. aside from Mr.. Ran.
net. with m interest In the paper. will hays
hand In Its management and will thereby
tighten tho burden now resting on Mr. Ben.
netts shoulders. However. Mr.. Bennett does
not wish to get rid OF tho labors attending the
sole proprletorship OF newspaper. He dc.
lights IN them.
To sum up the whole thing. he is simply
eoIngto organize a corporation TO hold his |
newspaper property. Of which corporation he |
Will hold the large majority OF the stock. lie |
does this in order that he may hayo his prom |
YIN such shape that II he were SO minded
ne could lr 81 n