The sun. [volume] (New York [N.Y.]) 1833-1916, 1893-06-02
COULD NOT SELL ITS PAPER.
TIE DOMESTIC SEWING MAcHINE COM
PANY DECIDES ON A REUR1 TERsBIP.

IL Has Great Deal of Paper Out. and Cnu't
| Market Any More at Prcsent-Three Now
| York Banks Have About e5So,ooo
| Worth-The Company Expects TO Pay Up,
Tho Domestic Sewing Machine Company has
applied TO the Court OF Chancery OF New Jer-
sey for the appointment Of a receiver. The
application was made on Wednesday by James
L. Howell Of the law firm OF Coult Howell. and
| an order to show cause was Issued by Vice.
Chancellor Van Fleet. returnable to-day at 10
A. NJ. The papers alleRe tina. the cause OF the
embarrassment OF the company Is the strin-
Eency OF the money market and the action OF
the Aston Place Bank In attaching the COM
rany's property In this city. This. combined
with the ncceaslty for running on O close mar
gin. brought the com pany to grief. Its credit
was impaired and II was not possible to con-
tinue its line OF discounts. Consequently It
was without funds to continue business
1t Is said In Newark. whero the factory is
situated and whore n great dsal OF the stock is
held. that tho proceeding ia friendly and that
all that Is desired is permission TO continue
tho business under a receivership. with a view
to oancelling all obligations and rehab ilitating
the business.
James L. Howell said yesterday that the
company had not asked for any particular re-
ceiver. and left that matter entirely to the
Vice. Chancellor without suggesting any
name. He said that the matter seemed to be
entirely in the hands OF the creditors. He
said further that tho New York and Newark
banks and other creditors had hesn notified OF
the application for receiver and would be on
hand to-day to look out for their interests.
The employees Of the company will have the
first lien on tho company under the New Jer-
soy laws Tho pay roll amounts to $4,000
weekly. and under tho law tho workmen hold
the property for all wages due within sixty
days Of tho application for tho receiver. The
employees number slightly loss than a thou
sand. including factory hands and office
mon; wednesday was pay day. and all
the S1yelopes we're made ont when
mon are indignant about this action OF the
entirely unnecessary lnasnuch as tho money
was supposed to be on hand to- pay them. and
Supsrintenden. Davis sal said ' yesterday Tint
money or about work in the near future. as
would collapse, He said that work was still
going on. and that the company was turning
hand and orders enough to insure brisk bust
ness for nearly q year. The works had not
was no likelihood OF a shut down.
The liabilities OF the Domestic Sewing Ma
chine c on, are placed Ct about 81 800 900
at about $500. 1t was definitely learned
yesterday that three national banks in New
York hold approx imately S75O. 900 OF the com
Ranys paper. The old management of tho
Third Nationa! Bank. through eT-President
Win the III. nevy
agement. especially since the advent of Presi-
dent A. D. Hepburn. took rigorous steps to |
protect itself It acquired O blanket mortgage |
Tor S]5O.OO0 on tho company's factory and |
plant ut Newark. and closed the account. The
mortgage has since been reduced TO 100000. |
and President Hepburn said yesterday that |
tho bank was fully protected. 1t has not o |
dollar OF the companys paper.