The comet. (Johnson City, Tenn.) 1884-1916, 1893-06-08
TWO Big ASSIGNMENTS.
TIE CARNEGIE LAND COMPANY
AND CARNEGIE IRON
COMPANY
Make Temporary Assignment on Ac.
count OF the Inability to Collect
Debts or Float Bonds.

"The Carnegie Land Company and
the CarnegieIron Company have made
an assignment
That announcement created more
excitement in johnson City yesterday
than anything that has happened for
years. It has been generally known
for some time that the Carnegie
Land Company, like ali other land
companies, was unable to collect de-
ferred payments on lots sold year or
two ago, notwithstanding the fact that
the lots, in many instances, had been
sold by original holders at handsome
profit, but it was not believed that the
company was particularly embarrassed
thereby, and the news of the assign
ment was like "clap of thunder in a
clear sky"
Gen. Wilder the president and resi-
dent manager OF the companies, has
worked hard and faithfully for the up
building OF this city and section, and
has done all in his power to avoid
making the assignment, but lack Of
financial support from interested par
ties rendered it absolutely necessary
to protect the property and the cred
itors.
A very small per cent, of the indebt-
ness is due at present and will not ma
ture for several months, and it is ex-
pected that before that time the prop
erty will be taken from the hands Of
the assignee.
There is no doubt OF the solvency of
the two companies, for there is, at a
low estimate, 100000 worth Of prop
erty to pay $4,000, or IS for 81.
What effect the assignment will
have on the community is hard to
foretell at present. If debtors are
pressed it may force others to assign,
but it will no doubt be the policy Of
the assignee to avoid such.
The following statement was tele-
graphed to several papers by THE
COMET Sunday:
"The Carnegie Land Company and
Che Carnegie Iron Company, on &C.
count OF the financial situation and in.
ability to make collections, and lack Of
assistance from nonresident stock
holders, have been forced into tenn
porary assignment to protect the prop.
erty and their creditors. The financial
pressure has been so great that the
companies conld not be sold or the
amount due them could not be col
lected.
Gen. Wilder, who owns one.third o.
the stock Of both companies, has stood
manfully by them and backed them
up to the extent of $4,000, while al
the other stockholders, holding two
thirds of the stock, have only furnishrC
about $4,000. Arrangements had beer
amade to sell the bonds on the furnace
lin New York, but the recent stringency
'of the money market was SO great tina
the party could not spare the mean
ito take up the bonds at present. They
however, assure the companies tina
they will take the bonds later and pa,
off all the indebtedness.
The property consists Of large, ney
blast furnace, hotel, lands and tow
lots, and secured notes OF. 100000
while the total indebtedness does no
exceed $4,000, much OF which
not due. There is not Of this amour
more than $4,000 due to people in tn
South. The rest is owed to partie
North and East.
The delay in completing the Thre
C's railroad was the prime cause Of a
the trouble, and no doubt the Who'll
thing will be Strengthened out an
everybody paid within this year. J. v
Cure has been made assignee, and
thoroughly familiar with all the affair
of the companies.
The Carnegie Land Company wa
organized about five years ago, an,
unlike other land companies, has p,
all profits from sales into improv
ments on the property with resolu
intention to build up the town an
country. The people generally regr
tho necessity for such proceedin
and, while sympathizing with Gener
Wilder, the president, feel that he h
made every effort to avert the troubl
and that he could have done sohad |
been properly assisted by those who
duty il was to do 50. 1t is confident
expected that the property win be t
ken out Of the assignee's- hand by Il
middle OF October, if not earlier"